I run my RRS V6 as a company car and it costs me approximately £7,000 a year in additional tax for the priviledge.

I have just put in the HMRC company car tax calculator the details of a Vogue SE and it is coming back as likely to cost me £12,000 in additional tax

£7K a year is bad enough......but £12K on top of income tax is ridiculous......

I am therefore in 2 minds about moving to a Vogue SE as planned. but I keep thinking what the hell etc.....

The Co2 figure of my RRS is 265 and for the FFRR I think its 295, plus the £30K cost difference leads to the higher tax.......

My question really is..............If I was to try to save some tax I'd have to buy a cheaper and greener car......

What would be the suggestions for around £65K worth of car (new) and with a CO2 figure similar or less than a RRS V6..............

This is all theoretical as I will probably just stick two fingers up to the tax man and go for the big daddy but I wouldn't mind some sensible options..........

PS I need a good boot for the golf gear

Im thinking of a BMW 730d M Sport.......comparable tax to a RRS

I seriously thought about an RX450h as it is only taxed at 17%BIK. Would save me a fortune over the RRS. Said RRS is now on order.

Unless you drive a high mileage or run your own business it is normally cheaper to ask your company to pay you cash in lieu of a car and claim mileage for work travel.
Normally much cheaper.

I've tried every single way possible to reduce my tax liability and now gone back to straightforward company car route but with me contributing £500 per month to the contract hire cost which I pay out of dividend income.
If anyone knows a better way I'd like to know too please? MY2011 HSE Santorini/Ivory/Piano Black/Privacy Glass/TV .Sadly gone.
Audi A5 Sportback Black Edition 3.0 tdi quattro S Line

New X5 4.0 diesel is 198g emissions and BIK is 31%!!!!!!!!!  Current, M135i in Estoril Blue with more extras than the cast of Ben Hur.

535d m-sport Platinum grey and a few extras.... Gone

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Range Rover Sport Santorini, privacy, dvd, towpack GONE!!!

Do you own the company? Can you opt out of the company car policy and get an additional cash payment? TBH with the emissions of the Range Rover Range in general I would avoid getting one as a company car, I own my own company and it was far cheaper to buy the car in my name... MY00 Subaru Impreza P1 Sonic Blue 350BHP 320 Ft-Lbs
MY08 Range Rover Sport HSE 4.2 Supercharged Java Black 385BHP 405 Ft-Lbs

Dave,
I tried that with a previous car an E320 cdi,over the year it worked out at almost £1/business mile and I ended up paying the tax on the difference between what I could claim tax free and what I actually did claim and it cost me over £8k,I bought the car for £36K and with the interest,deposit and balloon over 5 years I think it cost me about £46K and I ended up getting £5k trade in,all in all not a good deal,I then had an E270cdi but hated it and dropped £8k in 6 months when I did the deal on my current RRS.
As it is I've got fixed costs including tyres and road tax,know exactly how much my income tax is going to be and out of all the schemes I've tried over the years this at the moment seems the best deal unless anyone else can come up with something better? MY2011 HSE Santorini/Ivory/Piano Black/Privacy Glass/TV .Sadly gone.
Audi A5 Sportback Black Edition 3.0 tdi quattro S Line

ChrisP wrote:

with me contributing £500 per month to the contract hire cost which I pay out of dividend income.

Sometimes JF you may have to do things whether they make financial sense or not. Sometimes it is just it ! Cars are emotive and hard to justify with logic! Good Luck whatever you decide

Full Fat Not Diet wrote:

Sometimes JF you may have to do things whether they make financial sense or not. Sometimes it is just it ! Cars are emotive and hard to justify with logic! Good Luck whatever you decide

Jonny,
I think it reduces the tax by about 18% of 50% so I guess roughly about 9% net,I can ask my accountant the detail for you I just do as i'm told. MY2011 HSE Santorini/Ivory/Piano Black/Privacy Glass/TV .Sadly gone.
Audi A5 Sportback Black Edition 3.0 tdi quattro S Line

jonny, when i bought mine i asked what the tax implications were and how best to finance it, like most directors nowadays, i take a small salary and top up by taking a dividend, overall i pay about 31% instead of 40% if you are an employee, this is about what i pay in tax as a benefit in kind. it is too complicated to charge milage imho!!
cheers
dave MY10 TDV6 SE (debadged ), Santorini Black, Flappy paddles, Privacy Glass, 20" Stormers, Mudflaps!

Gone: a comprehensive list of imprezas and a Merc ML AMG

dont know if I am out of order, but take the small tax free salary, make up the proper wage in dividend, and having opted out charge a mileage everymonth within the guidelines which I think is £0.40 for the first 10k miles and £0.25 for everymile after, am I doing it wrong? purple people eater

There are no good days, just some days that are not as bad as others!


Gone RR 4.0 P38 Autobiography MY99 Red ( money pit)
Gone RRS MY06 2.7TDV6 HSE Rimini Red
Gone RRS MY10 3.0TDV6 HSE Bali Blue with lots of bits (never grew to love it)
Here Now - 3.6 TDV8 FFRR OVERFINCH Stornoway Grey - loving it x
My work car Ford Mondeo 2.0 TDci Zetec auto Estate in Silver

purple people eater wrote:

dont know if I am out of order, but take the small tax free salary, make up the proper wage in dividend, and having opted out charge a mileage everymonth within the guidelines which I think is £0.40 for the first 10k miles and £0.25 for everymile after, am I doing it wrong?

thats ok if you can justify the mileage, say your car costs £700 a month on finance or pch, you would have to do about 10,000 business miles a year for it to cost less than the tax you would pay (i think??),
imho, if you have a puncture or unforseen bill , it is not worth the hassle of opting out MY10 TDV6 SE (debadged ), Santorini Black, Flappy paddles, Privacy Glass, 20" Stormers, Mudflaps!

Gone: a comprehensive list of imprezas and a Merc ML AMG