Cash or car comparison

As a minimum you need to fill in the amounts of the monthly allowance and PCP. Detailed figures for AMAPS, Insurance and Servicing are important. You can play with the figures to see how sensitive the decision is.

Your Details
£
£
Annual Private Mileage
Annual Business Mileage
£
£
At what rate do you pay tax?  
Does employer pay for private fuel in the case of a company car?  
Comparison
months

Beware that if a company car with CO2 emissions above 75g/km is chosen in preference to an allowance after 5/4/2017, tax will be based on the higher of the car benefit and allowance. Use the tax calculator to see if this applies.

Vehicle: Mercedes-Benz C-Class Saloon C 350e PHEV Sport Premium Auto change

Based on these figures, the driver will be better off by choosing the car allowance option.

Driver / Employee's view - Car

Overall cost of taking company car £5,368

£3,466

Tax on company car benefit

5 months of tax year 17/18 £309
12 months of tax year 18/19 £1,071
12 months of tax year 19/20 £1,318
7 months of tax year 20/21 £769

£1,902

Tax on fuel benefit + cost of fuel

Tax on fuel benefit
5 months of tax year 17/18 £170
12 months of tax year 18/19 £588
12 months of tax year 19/20 £723
7 months of tax year 20/21 £422
Cost of private fuel
5000 miles @ 60.9mpg @ 120.74ppl £0

£0

Personal contributions

Capital contribution £0
Regular contributions over 36 months £0

Driver / Employee's view - Cash

Personal allowance remaining unspent £781

£0

Finance details

Allowance total 0)
PCP payment total £0
Income tax on allowance
5 months of tax year 17/18 £0
12 months of tax year 18/19 £0
12 months of tax year 19/20 £0
7 months of tax year 20/21 £0
National Insurance on allowance
5 months of tax year 17/18 £0
12 months of tax year 18/19 £0
12 months of tax year 19/20 £0
7 months of tax year 20/21 £0

£2,704

Fuel

Cost of private fuel £1,352
Cost of business fuel £1,352

£(6,750)

Business mileage reimbursement (AMAPs)

First 10,000 miles rate
5,000 x p £2,250
Over 10,000 miles rate
0 x p £0
Total per year £2,250
Total over 36 months £6,750

£0

Tax on additional mileage reimbursement

Applies where the employer pays more than the AMAPs rates.

Additional mileage reimbursement
First 10,000 miles rate
5,000 x ( 45p − 45p ) £0
Over 10,000 miles rate
0 x ( 25p − 25p ) £0
Total per year £0
Total over 36 months £0
Income tax on additional mileage reimbursement
Total subject to income tax per year £0
Income tax on additional mileage reimbursement over full period £0
NIC on additional mileage reimbursement
Total subject to NIC per year £0
NIC on additional mileage reimbursement over full period £0

£(0)

Mileage relief

Applies where employer pays less than the AMAPs rates.

First 10,000 miles rate
5,000 x ( 45p − 45p ) £0
Over 10,000 miles rate
0 x ( 25p − 25p ) £0
Total per year £0
Total over 36 months £0
Total tax on relief £0

£1,925

Insurance

£
Insurance total over 36 months £1,725
Allowance for non-insured damage £

£1,340

Service and maintenance

£
Over 36 months £600
Service and tyres additional variable element per mile p
Over 30,000 miles £600
Other supplies over 36 months not covered by maintenance contract £
Breakdown & Recovery per annum £
Over 36 months £120

£0

Vehicle tax & MOT

VED November 2018 £0
VED November 2019 £0
VED November 2020 £0
MOT/year after 3 years £0

Employer's view - Car

Based on above company car option £9,225

£0

Business Contract Hire

Initial payment (net) x £ = £0
Monthly payments (net) x £ = £0
Subtotal of all payments £0
Non-reclaimable element of VAT @ 10% £0

£2,479

Fuel costs

Business fuel (net) £1,127
Private fuel £1,352

£3,704

Class 1A NIC

Class 1A NIC on car benefit
5 months of tax year 17/18 £309
12 months of tax year 18/19 £1,071
12 months of tax year 19/20 £1,318
7 months of tax year 20/21 £769
Class 1A NIC on fuel benefit
5 months of tax year 17/18 £170
12 months of tax year 18/19 £588
12 months of tax year 19/20 £723
7 months of tax year 20/21 £422

0)

Personal contributions

Capital contribution £0
Regular contributions over 36 months £0

£1,925

Insurance

£
Insurance total over 36 months £1,725
Allowance for non-insured damage £

£1,118

Service and Maintenance

    fixed cost per annum £
    over 36 months (net) £500
Service and tyres additional variable element per mile p
    over 30,000 miles (net) £501
Other supplies over 36 months not covered by maintenance contract £
Breakdown & Recovery per annum £
    over 36 months (net) £100

£0

Vehicle tax & MOT

MOT/year after 3 years £0

Employer's view - Cash

Based on above cash option £6,525

£0

Allowance

Allowance per month £0
Total over 36 months £0

£0

Employer's NIC on cash allowance

Class 1A NIC on cash allowance
5 months of tax year 17/18 £0
12 months of tax year 18/19 £0
12 months of tax year 19/20 £0
7 months of tax year 20/21 £0

£1,127

Fuel

Cost of private fuel £0
Cost of business fuel (net) £1,127

£5,398

Business mileage reimbursement (AMAPs)

First 10,000 miles rate
5,000 x 45p £2,250
Over 10,000 miles rate
0 x 25p £0
Total per year £2,250
Total over 36 months £6,750
Less: Gross costs of business fuel 1,352)

The rates can be adjusted from inside the Business mileage reimbursement (AMAPS) box in the Employee's view above

£0

Employer's NIC on additional mileage reimbursement

Class 1A NIC on additional mileage reimbursement
Total subject to NIC per year £0
Class 1A NIC on additional mileage reimbursement over full period £0

Assumptions

  • Where tax rates for future years have not been announced, the latest current rates have been used, rather than estimates of future increases.
  • The Employer is VAT registered
  • NICs are based on standard rates for those in non-contracted out employment. (Table letter A)