Given that I've never had a company car in the past any of you nice gents give me any advice on whether I should take a company car or go down the allowance route? I will be doing around 20+k miles a year with the car but have not much idea how the tax works etc for this so don't know which is the best route to take.

I know they prefer Volvo V50 D5 Sports at the mo (WHY??? ) based on the mileage etc would I be better suffering in 1 of them rather than buying something of my own and taking an allowance.

Anyone able to explain in idiot terms how the tax is worked out etc and which option would be best for me?

Cheers all

4WD Current, M135i in Estoril Blue with more extras than the cast of Ben Hur.

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

X5 3.0 sd in Space Grey, 20's, Dynamic Pack, Memory Pack, Media Pack, Tow Pack, Rear DVD, Panoramic Sunroof, Steps, 7 Seat Pack, Reversing Camera with moving lines, programmable park heat, etc etc etc - Gone

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

What is the fuel allowance they are going to pay per mile if you opt out? and how much is the allowance

At the moment 45p a mile. Havent discussed the allowance yet. Haven't had time lately. Current, M135i in Estoril Blue with more extras than the cast of Ben Hur.

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

X5 3.0 sd in Space Grey, 20's, Dynamic Pack, Memory Pack, Media Pack, Tow Pack, Rear DVD, Panoramic Sunroof, Steps, 7 Seat Pack, Reversing Camera with moving lines, programmable park heat, etc etc etc - Gone

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

You need to calculate the company car tax, you can do that here:

http://www.hmrc.gov.uk/calcs/cars.htm

Then you can weigh up your options based on your estimated mileage

Based on current allowance you are 5p over the amount for tax relief on mileage allowance, the tax man will allow you to claim up to 40p a mile for the first 10K and 25p thereafter so if the company paid you 10p a mile you could claim the difference between 10 an 40 for the first 10k and difference between 10 and 25 thereafter, in your current allowance you will have a benefit in kind of 5p for every mile driven so you will owe the tax man a little at the end of the year.

If you calculate the tax hit as jonny fresh reccomends you then need to balance that with the benefit of driving your own car and also that the company will be paying you for a car that will be say after a 3 year loan is paid off be an asset that will then be yours, all depends how you finanace it and running costs etc

You will be getting 9K a year in fuel payments based on 20K but you also need to factor tax, tyres insurance etc

All very complicated but can work in your advantage dependant on the car you choose and the mileage and running costs.