Car provison/Leasing Scheme

gary the great

Im getting a company car with my new job in the UK, and i have a choice of the leasing scheme or car provision allowence. Im trying to get my head around both, anyone care to give me an explanation.

It says the car provision allowence is non-superannualbe, what the hell does that mean?

My reasoning is if i buy a car using the car provsion scheme i will own the car eventually, as opposed to leaseing it.

Any advice?

And whats this im hearing about BIK etc what is it?

Borzoi

gary the great wrote:

Im getting a company car with my new job in the UK, and i have a choice of the leasing scheme or car provision allowence. Im trying to get my head around both, anyone care to give me an explanation.
?

Car Provision Allowance - a taxable part of your income - say £3000 per year, which your emplyer will assume will pay all the running cost of the car. You are 100% resposible for the car, it 's all yours. It's non superannuable, ie the extra £3000 you get a year is not figured as income for pension purposes.

Leasing scheme - the company gets a specialist firm to lease the car for you. You pay tax on this as Benifit in Kind (BIK), I believe the BIK rates in the UK are based on CO2 emmissions and milage. The car is not yours, never will be, and your not responsible for running costs

Really you need to chech the details of what they offer, and your own circumstances to make an informed choice

gary the great

So i lose 40% of this provision in tax?
Thats crap.

Suppose im better off buying my own car then, at least i'll own that.