Quote:
Originally Posted by gidoc
Thanks, that makes sense.
Here is the rough estimate I got:
Retail Price (inc. VAT): £32,900.00
Total Accessory Cost: £1,595.00
Total P11D value: £34,495.00
Tax Rate: 50%
Gross Annual Salary Sacrifice: £8,392.53
Benefit in Kind %: 20%
Annual Benefit in Kind Tax: £3,449.50
Tax Saving: -£4,196.27
NI Saving: -£167.85
Pension Contribution: -£272.76
Net Yearly Cost: £7,205.16
Net Monthly Cost: £600.43
Benefit tax £287 + net cost/ month= £687
The quote I got from Pvt Lease is £700 + full maintenance but no insurance
So even if I negotiate to a lower pvt lease, I still gain from not having to pay any insurance, which will be about £800/annum.
On company insurance, if I claim, does it effect my ' NCB'? and if not does my 50% NCB just keeps rolling on?
Many thanks
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Insurance companies will (in my experience) recognise a break in your personal cover for a period of years but it won't indefinate. That said most of them recognise accident free motoring under a company policy too. I haven't experienced this personally yet but you'll probably just need a letter from your lease manager stating no claims.
Something looks wrong to me in your benefit in kind tax. As a 50% tax payer I would expect to be taxed on the benefit at 50%.
You know how there are tax bands:
20% - £0-£35k
40% - £35-£150k
50% - > £150
I think maybe your supplier is being a little disengenuous and suggesting that your benefit in kind tax is from the first band.
You'll know for sure when you get a letter from HMRC telling you it's £8000 benefit in kind, like I got this week. LOL