Essentially, if you’re a high earner driving a big, dirty diesel, you’ll get clobbered. In this case, is a company car worth it will be down to how you view the other perks. If you fall in this bracket, weigh up the pros and cons of a company car vs a personal allowance.
But, go more economical, modest and hybrid, then things get much easier. And go all-electric with a good range and you could end up paying almost no BiK tax, yet keep all the juicy perks.
Personally, even with a car allowance option, I still choose the company car route. For me, a company car is worth it. This is mainly due to the high miles that I drive each year and that the company provides a fuel card. I’ve come to think of it as ‘car-as-a-service’ – all the hassle of car ownership taken away with one monthly fee.
But what I really have my sights on, is an all-electric company car with a great range. That way, I get all the benefits of a company car with almost no tax. That’s hassle-free motoring for almost zero cost. And the polar bears are happier, which is good.
So, if your employer still offers the scheme and, more importantly, is open to providing all-electric vehicles, then don’t rule out the company car just yet. It could just save your budget and the planet.
Long live the company car.
Here’s to your Financial Fitness