What does a company car?

testmeat 20-02-2018 Auto
A company car sounds ideal for many people, but it is especially for expensive leased ?? s an expensive way of drive. A company car for personal use might imply a significant additional tax to 25 percent of the value of the car. A company car most employees find a privilege, but it often remains on how much the employee to pay for. Employees who use the company car for business only receive no compensation. The employee may annually up to 500 kilometers a year privately to drive it without him getting an addition. This has to prove the employee by submitting an administration where the kilometers are declared. This demonstrates that there are still more than 500 private kilometers driven, it is considered an addition up to 25 percent of the replacement value. Mileage from home to work and back are viewed as business mileage.

How much is the charge?

Nowadays, there are different rates. Most car ?? s give an additional tax rate of 25 percent. For certain less polluting cars ?? s be lower prices. Some car ?? s know an addition of 20 percent. This applies ?? s car with gasoline engines with CO2 emissions between 111 and 140 grams, and for diesel with emissions between 96 and 116 grams. Most people will say this much, but there are more and more cars ?? s satisfying these conditions. This rate includes for example the small versions of the Audi, BMW and Mercedes. If the car ?? s have less CO2 emissions fall into the 14 percent segment. They included among others the Toyota Prius and the Honda Civic.

What does a company car?

Those who drive a company car and more than 500 kilometers per year private drive customers must pay extra monthly burden. For many employers need besides the addition also a contribution to meet the employer. This is a fee for the employer because you are going to use the private car.

Example Calculation

Drive business and private in a car, the addition will be 25 percent. The employer takes you ?? 100 monthly charge associated with private use. The new value including accessories amounted to purchase ?? 40,000. Annually the reintegration 25 percent, calculated per month it costs so 2.0833 percent. This should be multiplied by the replacement value. The outcome should be added as it were, in the wage.
Monthly costs:
?? 40 000 x 2.0833 = ?? 833.32 percent should be added to the monthly income. Because the employer ?? 100 asks contribution, it may still be deducted. The addition will be so ?? 733.32 gross. How much it will cost net depends on the level of your income. Does the top of your income fully 42 percent in the disk, then it will cost you a monthly ?? 733.32 x 42 percent = ?? 307.99 plus the personal contribution you must pay to the employer cost you a total of: ? 407.99. For this amount you drive a new car, and you have no further costs for insurance, taxes, depreciation and possibly fuel.
Comments (1)

I do hope this roof is a late April 1st joke. I have a company car, it is a vw candy that is suitable for one person and is packed with tools and parts. I've had this car for my work as a service technician of heating. I drive from home to my customers, and because I also fault the service is not an option to put the car on the case. Now I would give this candy or actually the tool for me to be able to pay to do my job in order to work. I could not even use the private car so I am greatly affected financially.