Which company car, tax implications

[Edin Dundee]

Hey all, I finally secured my dream job, and it comes with a car and fuel.
I've had a look around HMRCs website, but here's the thing - which way will the government swing in the next three years with company car tax?
Are they going to be less lenient on diesels and more tolerant on petrol?

Also looking at the range of petrol cars available - the engines are tiny! Anyone drive a tiny engined largish car? What are they like?

[Toledo Man]

The smaller engines are getting more powerful. My partner's son has a 2014 Astra (bought from new) with a 1.4 petrol engine and it has roughly the same power as the 1.6 in my 2001 Astra. This could be a tough call with the taxation but I can't see the current Tory government changing things much during the current Parliament. I don't know if things are going to be different in Scotland with the promised "maximum devolution".

[cliftyhanger]

There are plenty of small petrol engines that are either tubo, super or both charged.
Friend has a Skoda VRS thing. 1.4, 180bhp and he has taken it up to 130mph (autobhan) but there was more available. It will also crack 50mpg+ on a motorway run.
The new petrol stuff is getting pretty interesting

Of course, some excellent diesels out there too, some with silly low CO2 emissions which may suit you.

[killysprint]

Firstly congratulations on your new job! Always an exciting time.

Each gov have tightened their grip on the taxation of company cars, and a careful choice is essential to make sure it's fit for purpose and most importantly be cost effective for you. They are certainly no longer a perk of the job, hence making sure you have the right car is crucial.
Also make sure having all your fuel paid for is the right choice for you too. Certainly the last time it was offered to me - the private mileage required to make it worthwhile was in excess of 14000 per annum (3 or so years ago). I'm sure the break even point will be more than that today.

For petrol cars with even sub 100g/km emissions (actually 95-99 g/Km) are subject to a 14% bik levy. Each subsequent 5 g/Km rise in the emissions increases the bik levy by 1%. Having a diesel adds 3% to the petrol levy.

Check out the guide on auto express - they have a best company car by price bracket. Offers some good advice. http://www.autoexpress.co.uk/best-cars/ ... -cars-2015

As an aside Some of the smaller engined petrols I've driven as hire cars - notably the Leon 1.2 and the focus 1.0 were great. Plenty of pick up and more than capable of holding their own on the motorway. I wouldn't let the engine size put you off.

my wife currently (no pun intended) has the company car in our household - we've been electric for the last 20 months or so first with a leaf - which until April had a zero bik, now with a tesla, which with the changes in car tax from April attracts a 5% bik. These choices were driven by wanting to reduce our co. Car taxation, which each certainly has. The leaf effectively free for the first 16 months of use.

certainly if you can live with the limited range - I wouldnt dismiss the electric option. It has been a pleasant (and cheap) surprise for us!!

Best of luck with the choice and with your new role.

[Edin Dundee]

Thanks for the info Clive and killysprint, everything I need is there.

Now, who's going to guess what the government will do to all of this next year?

I'm going to research Mondeo sized cars with the tiny petrol engines, and some of the more frugal diesel things.
Auto express 'recommend' amongst others a diesel Insignia, diesel Skoda VRS, and a diesel Mazda 6.
They also recommend a Caterham 7, someone's got a sense of humour!

I found this site useful for figuring out how many private miles I need to do to break even:
http://comcar.co.uk/fuel/benefit/?
If I choose a car wisely based on emissions it will be OK for me.

[MIG Wielder]

Is there any tax advantage in running a Classic these days ? Some years ago I had a friend who ran an XJ6 as a company car. It was a great car in a sort of Damson colour with a gold coach line and strangely it never let him down.
But he was a real Jaguar enthusiast.
Tony.

[SprintMWU773V]

Unless you do a lot of miles and very few private miles the cost of a company car is quite high. You're rated on the CO2 so diesel right now is king, this may change.

Your ideal car will be sub 100g/km but few cars are except either seriously under engined diesel cars or hybrids. Personally I find under engined diesels great for tax but pretty rubbish for real world economy (same for petrols). My wife has a hybrid Lexus, for the sort of driving she does it's great and gives 60+mpg.

Cars worthy of consideration though might be the Volvo V40/V60 D4 - this is a great new diesel engine and good on CO2. You can also get the D2 but this is only 115bhp vs the 180 or so in the D4.

Hate to say it but BMW have some very competitive deals on both 1 and 3 series and CO2 is very low on these so low tax. Be warned though, no one will let you out of a junction ever again.

[Jon Tilson]

The new XE creeps in under the 100 g/km for the lower powered manual.

If you can live with the range though electric could be the thing but the only electric car you might actually want
(tesla) is still over 50k, but coming down. The new model 3 will be here for your next renewal.

I'd look at an XE if that's in budget.

Jonners

[SprintMWU773V]

I hope to drive the XE in a few weeks. I've seen a surprising number around. If I'm, honest I'd give them 4/10 for the styling, way too safe but then so's every car in the sector it competes in. Real proof will be in the new engines, particularly the diesel. The refinement around town will be interesting, most diesels are not that great. Speaking of a few weeks ago I drove an Infiniti Q50, what an underwhelming, steaming pile of poo that car was. Noisy Mercedes diesel engine, hard ride, no steering feel and worryingly bad handling when dealing with anything twisty. On the plus side the seats were great and no-one else will have one.

[mbellinger]

The XE is rubbish - avoid.

Definitely a candidate for most over-hyped and consequently underwhelming new car of the year. I have driven three different examples so I should know.

The last model 3 series was much, much better - never mind the latest model.

Ghastly aberration.

The VW group 1.2 TSi petrol lump is a very good motor and available across their various Seat, Skoda, Audi and VW ranges. Ditto the Ford 1.0 Ecoboost, though avoid the lower powered version.

The new Hyundai i20 is available with a sub-100kg 1.1 diesel lump that is dog slow, but I got a real world 89mpg on a run....

[Edin Dundee]

Just received the bumph by courier, approved cars are:
VW, Audi, Skoda and Seat
BMW
Ford
Mercedes
Must have metallic paint, bluetooth and aircon.
Max budget is £26.5k but I would want as cheap as possible but still a decent size.
Thinking Seat Leon now.......or maybe an Octavia

[SprintMWU773V]

Friend as a Leon FR estate, he likes it very much. Personally I prefer the Skoda, it seems nicer quality. Skoda dealers are also nicer in my experience.

You won't get a Merc or BMW of the larger variety for the budget.

[Jon Tilson]

Given that you will only get a pov spec new Audi A4 it may not be worth waiting to see what the new model is like.
From that list an MQB based 2.o Tdi Octavia looks like your best bet. Its a golf mk 7 with a bigger boot.

VW make Skoda have it not quite so well bushed or shocked suspension wise but the gap is closing all the time.
Dont agree on the XE Mr Bellinger.
I'm starting to think you have a personal issue with JLR. All the road test pundits disagree with you as well.

BM have lost the plot sticking a 3 cylinder mini lump in the cheapest 3 series and still wanting 30k for one with a spec you would actually want, not withstanding the brand conotations....

Jonners

[James467]

I can recommend a Skoda Superb Estate, I found it better riding than the A6 estate I test drove and despite owning an old A6 I struggled to get the salesman to actually entertain the idea of selling me one! Suspension and handling are a personal thing though, my only gripe is that I think it rides a tad high. It's good to drive though, very quiet on the motorway, predominantly VW proven components so should be reliable and more importantly for me having two kids, it's HUGE!!

Mine is the TDI 140 Elegance with a load of optional extras on (electric boot, sun blinds etc...) plus free servicing and a 5 year warranty for £23,496. It costs me £30 per year in road tax and after 2477 miles of not particularly economical driving it has cost me 12p per mile in fuel.

It's still new, with only 2477 miles on it so that should get better over time.

Should get a good deal on one of the run out models.

James

[Edin Dundee]

Thanks to all for the advice, tips, preferences and wisdom.
I should pick up a pool car in a couple of weeks, so hopefully there will be a reasonable selection.
Looking like I'll order a Superb business hatch 150ps when it's time, it comes more or less fully loaded for list price. It's big, and based on the Passat chassis I'm told.