Its been a while since i posted on hear, and i hope everybody is doing well.
I have a quick question i hope you can answer:-
Throughput the year, i have been lucky enough to earn overtime upto my limit. (10% of earnings if i recall, dont quote me!)
Today i have been offered a significant promotion, which will in effect cement the overtime/bonus i have been earning into a fixed salary. Now although this will still keep my earnings beneath my ceiling, the major dissadvantage is that the job involves a company car. Currently i use an "on call" vehicle, and therefore as it isnt mine, i do not pay for tax and fuel, and can only use it to get to and from work. With the car i would be expected to pay approx £400 a month tax, plus fuel. (its a company std 1.6 Diesel VW)
Obviously i do not want to pass on this opportunity, so how does this situation work?
Thanks in advance
Thanks for your help in advance.
F&F Accepted on 12th March 2015!
Completion Cert arrived 26th March 2015!
Your ceiling will change if this is coverted to salary, as your basic salary will inrease to the extent of your payrise. With the taxation of the company car, you could end up worse off - albeit you obviously have car expenditure now - tax, insurance, maintenance which presumably would be paid by your employer moving forward.
The allowances for car running etc are obviously for the family (wifes) car. Basically as you stated, i will actually be worse off in the long run. Althought i will claim comapany mileage, its the tax which will hit hard.
Its difficult as although ive been offered the promotion, and ill actually be worse off, the job will stand me in good stead for a further promotion (with a SIGNIFICANT pay rise) in a few years.
Its a hard one, and im not really sure what to do,
F&F Accepted on 12th March 2015!
Completion Cert arrived 26th March 2015!
Go for it! There is life at the end of the IVA and you should not miss up an opportunity to progress your career. Remember that none of us are getting any younger, sadly!
Naturally i want to go for it! But the issue still remains..... how will it affect my IVA with you? Will i pay more? and how will my ceiling alter? I cant imagine how we would cope on less money, albeit providing a better lifestyle at the end of th IVA.
Dan
F&F Accepted on 12th March 2015!
Completion Cert arrived 26th March 2015!
Hi Dan
Chew it over with your IP, you should not be worse off yourself by taking promotion and if it means a small reduction in payments into your IVA I would hope that your IP supports it
Regards
Your ceiling will increase as your basic salary - that which is used to firstly set the benchmark for future rises will increase. This may not necessarily result in a rise in your contributions - but if you area client of mine I would prefer to discuss this with you in pirvate, off-line, when I can gather up all of the facts to enable me to advise you correctly.
£400/month tax on a company car??
I think you had better check that out, it's wrong, wrong, wrong!
I think you must have misunderstood somebody at some point. What is more realistic is that you will be paying tax on an additional £400/month = approx £80-00/month at basic rate.
I have a company car that is a 1.7 Astra diesel,I pay for any personal mileage (which does include travel to and from work)and the tax liability is approx £40-00/month.
I can see how you have misunderstood, and how you have got so worried about it, but don't, you have probably been given duff info by somebody. Put your mind at ease and Google something like "how much tax on a company car". There is a load of official government information out there about it, including tax calculators.
Hope this helps,
Gabba
The man that walks towards the sun sees no shadow.
