(a) Your employer is paying and you are exploiting the fact that it's a plug-in hybrid doing a whopping 30 miles on a charge to get a low BIK figure on your company car.In my view, it only makes sense if:
(a) Your employer is paying and you are exploiting the fact that it's a plug-in hybrid doing a whopping 30 miles on a charge to get a low BIK figure on your company car.
Er, that's it. <snip>
As a company car, a PIH is by far the best option. A mate has been offered a PIH BMW for under £200 a month on his tax bill. An equivalent diesel is £300+.
Remember that this is his total cost, insured, taxed, ready to go.but then, in my present financial situation, I would probably not pay £200 a month for a car, full stop.
I have just bought a second hand audi a3 e-tron which is pretty much the same car under the skin I understand. (they are around the same price second hand but the A3 is better equipped).Any owners here? Considering one. Keen to hear people’s thoughts. Would be mainly a commuting car, round-trip 30 miles(ish) to Edinburgh, free destination charging available.
It helps to be able to charge at home, yes. I haven't tried doing it anywhere else, but there are charging points near my work. Not that I drive to work during the week. Perhaps I would have been better off with a Prius, but err... Uber.London is the last place in the UK where PIHs make practical sense, however good the idea might be in reducing pollution at point of travel. Where can you park off road and charge them? If you had chargers on the pavements, happy days, but that's for the future.
A company car generally makes up part of the salary and benefits if you are lucky enough to get one. Back in the 70's they were a tax dodge, these days less so. As a general rule the employer picks up the tab to buy, or more commonly lease, the car, and tax and insure it. The employee is deemed to have a "benefit in kind" (BIK) because of course they get to use the car when they aren't at work and save having to buy and run their own car. Consequently there is a tax bill to pay on the calculated BIK. The exact amount changes with the car and whether fuel is included in the deal. However if the BIK is reckoned to be £3000 a year you pay the tax on that amount - a 20% tax payer pays £600 a year extra tax, twice that if you pay 40%.Neither have I ever had a company car, so I'm not sure exactly what would be included in the £200-£300 / month. Still I doubt I've ever paid >= £2400 a year for a car, even if I include every cost of ownership except fuel. For most years I could probably include fuel and still be below that figure, as my mileage is fairly low
- Garry