Conference terri::cars_uk

    
    The proposals to change the Car Tax (benefit in kind) are just that;
    Proposed.
    
    The idea, I believe, is for the Civil Service to review how a value
    based plan could be introduced. There were, as far as I know, no
    details on whether values would be banded or whether discounts would be
    taken into account, etc, etc.
    
    If you're looking at changing your car now, don't make a decision based
    on what the current chancellor has said, as the next one (whatever
    colour his party may be) may change the plans radically!
    
    Expect all but those who drive 999cc FIAT Unos to be worse off! :^(
    
    Mark

    
    Although in the last ( latest ) budget your tax liability did go up 5%.
    
    So instead of it being �2650 for a two-litre car which cost under the
    �19,250 limit and assumed that you did more than 2,500 but less than
    18,000 business miles per annum as of 4th April it becomes �2782.50
    
    If and when the system changes to being related to the value of the car
    rather than the engine size - I know that this is already true for cars
    costing more than �19,250 - I personally see a lot more people taking
    on leases for big-engined diesel jobbies.
    
    Rich
    

    The new proposals for tax change are due from the Inland Revenue in
    the summer (maybe thats never as we don't seem to get them anymore)
    
    Regards martin

    
    RE .3 I heard that these new proposlas were due out in June i.e. this
    month. 
    
    I suppose we just wait and in the interim read the motoring press for
    updates.
    
    However there seem to be an awful lot of new cars being released with
    engines bigger than 2 litres butcosting less than the magic �19,250
    figure. This leads me to believe that the motor industry knows more
    than joe public does. This was definitely the case in the past when 1.4
    and 1.8 litre modles were being released prior to the then chancellor
    announcing 1.4/1.8 tax bands.
    
    Rich
    

    
    Interesting feature in one of this months car mags...
    
    One of the company car tax breaks is at the �19,250 level. I/we've
    always assumed that we can beat the tax break and get a car costing
    more than the 19,250 level based on any discount that the lease company
    gets from the car company. 
    
    Well according to the tax man this is only true IF a member of joe
    public can get the same level of discount as the fleet buyer. Now in my
    opinion that is probably not possible given the fleet buyers buying muscle.
    
    So it looks like there is no hard and fast rule and that it's open to
    interpretation depending on which tax office you deal with.
    
    Rich
    

    
    Not sure where to enter this as there are so many tax related topics.
    I have a question that if someone *knowledegable* could answer I would
    be most greatful.;-)
    
    With the new tax levels etc as they are would I pay more or less tax on 
    a company car valued at 16030 with a 2L engine ?. I do less than
    2500.miles.
    
    Anybody able to help.
    
    thanks.
    Gary
    
    
    

    MORE.
    
    The price break point for equivalent tax is a car of about 12,800
    pounds

    Gary,
    
    I'm no expert but this is how I understand it.
    
    The break even point for the new/old tax system is a list price of
    approx �12,500.
    
    You are taxed on 35% of the list price (+ delivery charges +
    accessories etc). So in your case you will taxed on �5610 which is
    �1255 more than �4375 (35% of �12,500). So assuming you are taxed at
    25% you will be about �300 a year worse off under the new scheme.
    
    Royston

>    With the new tax levels etc as they are would I pay more or less tax on 
>    a company car valued at 16030 with a 2L engine ?. I do less than
>    2500.miles.
    
using the old tax codes, your taxable benefit would have been #2990,
without any mileage allowance; with the new tax codes, the benefit is
calculated as 35% of the total price, which will include any accessories,
car tax (varies depending on how old it is), delivery costs, and VAT
added onto the whole lot.  Assuming that the 16030 covers all this, that
works out at #5610 taxable benefit.  Assuming this is taxed at the base
rate, you'd be (5610 - 2990) * 25% = #655.13 worse off.

Chris.

>    The break even point for the new/old tax system is a list price of
>    approx �12,500.
 
just out of interest, where did you get that figure?  That's about how
much my car's been valued at, but I've been given a pretty severe tax
increase nontheless...  :(

Chris.   

    �where did you get that figure? 
    
    First of all Chris the figure you mention of 2990 is the old value
    for business mileage of 2501 - 17999 miles. Gary has said he does less
    than 2500 which under the old scheme was taxed at 4464.
    
    The �12,500 figure (or more correctly as another noter mentioned
    - 12,800) is simply the value where the 35% equals the 4464 figure.
    Therefore if your list price is higher you are now worse off,
    conversely if the list price is lower you are better off.
    
    Hope this is clear,
    
    Royston

Oh yeah, I forgot that in the old scheme you had to add on to the
value if you did less than 2500 miles.  Oops...

Chris.

So Gazza,

to sum that all up,

for the year to 4-April 1994 you were taxed on 4464
From 5-April 1994 you will be taxed on 5610. 

Ian

    
    Ian et all....
    
    
    
    shite me.  I think one may opt out !.
    
    
    Many thanks.
    
    

    
    I thought a car of 2L was taxed at a higher rate than the 2990.
    
    or am I wrong
    
    

if the engine size is greater than 2000cc it falls in the next bracket,
but most cars advertised as 2 litres are usually 1990ish ccs, so they
fall into the 1401-2000cc bracket.

Chris.

boring trivia:

About 15 or so years ago, the tax limits were 1300 and 1800 (BL A & B series
engine capacities...!), and Fiat had a model with an engine that was
1299cc in the UK, but 1301cc in Italy, as Italian speed limits were (are?)
based on engine capacity...

It was of course the same engine.

Peter.

    Did't Volkswagen market Beetles as '1303' cc's. I thought it odd at the
    time. Maybe this was to do with tax breaks in Europe as well.
    
    Royston

    hmm...
    
    VW Beetle model numbers 1300, 1302 and 1303 didn't correspond to the
    actual engine size but the chassis type. Basic models were all
    equipped with a 1300 cc engine and 'S' models with a 1600 cc.
    Of course there was the traditional type 1200 too.
    
    Juha
    
         -  an owner of a '73 1303 S