Company Car questions

[stevo55]

To most on here this will sound like a bone question but it's brand new for me!
I've been contracting for nigh on 20 years and only now have jumped over to a full time role. Part of my employment package is a £5300.00 car allowance.
How does it work?
I understand that I'll be taxed on that and will have a few options:
1. Lease a new car via a leasing company
2. Go to a main dealer either new or used
3. Sell my car and just use the company one to subsidise getting a nicer car and run one car only (was thinking C7 RS6)

As to car choices, am thinking:

A6
New A5/A4
BMW 5 series or maybe a 335d (still get the AWD)
Mercedes C or E Class.

For the time being I don't know the miles I'll be putting in so it may be better to give it a year in a diesel and readjust from there.
I understand this is pretty normal for most on here but this is totally new to me!
Any constructive advice is welcome. Cheers

[doodlebug]

It's just part of your pay if you receive the cash.

If there's a company scheme where they supply a car you're going to be hemmed in to whatever the scheme will supply.

[HPsauce]

A car allowance is really just taxable income as a starting position. Are there any conditions attached, e.g. to actually HAVE a car (of a certain type/capability) and have it available and insured for business use?
My daughter is paid a car allowance but has no car. Purely a "perk". There tend then to be debates about pension contributions etc. so it can get messy.

[longman h]

As above mate, it's pretty much just part of your salary. Depending on your employer's T&c's you may need to prove that it's insured for business use as well.

[DeanoC]

I was in a scheme for years but come out as it is just not viable now with how much the company car tax goes up each year. You used to have cheap hassle free motoring if you got a low co2 vehicle but even hybrids are getting taxed now and more in the future.

[stevo55]

Thanks for the input so far guys, my offer should come early next week and I guess the T & C's will cover the car allowance. I'm loath to use my car for travelling around for work as it's still on low miles hence I'd be looking at getting into a works vehicle. Will come back to you all once I have the offer.

[longman h]

Thanks for the input so far guys, my offer should come early next week and I guess the T & C's will cover the car allowance. I'm loath to use my car for travelling around for work as it's still on low miles hence I'd be looking at getting into a works vehicle. Will come back to you all once I have the offer.

How many miles do you think you'll be doing?

[stevo55]

No idea that's the problem! I would guess between 12-15 pa but it's a bit of an unknown as I haven't started yet. Corporate role working from a Head Office.

[longman h]

Some companies (the one I'm about to join being one of them) offer 45p per mile for the first 10k and then 25p after. If your employer only pays some of this, you can claim the rest from the HMRC.

[longman h]

I've worked out over 20,000 miles that I should be £1,500 better off in the C6.

[stevo55]

Apart from wear and tear on my C6 it's also the shocking economy that we all know and love so well
A diesel car (or even a newer petrol-in my M135i I could easily attain 40mpg on long runs) would be a lot cheaper to run on business trips. I was working in the Midlands recently and the 110 mile trip from home would take half a tank in the C6.

[HYFR]

Take the cash.

BMW are doing M140i for £0 deposit and £349 pcm atm on PCP. 335PS. Performance bargain.

[stevo55]

Take the cash.

BMW are doing M140i for £0 deposit and £349 pcm atm on PCP. 335PS. Performance bargain.

I had 2 M135is and they're amazing cars, trouble is after nearly a year in the C6 I'm truly sold on AWD! I don't miss scrabbling for grip and not being able to put all the power down like we can with Quattro. They won't be bringing an M1/240xi to the UK which is a shame.

[stevo55]

Ok just to revive the thread, know more about what I'm getting and it's basically that wedge on top of my wages to compensate for using a car for work. Actual business miles will be maybe 5000 a year (and I get mileage allowance for that as well). On the basis of that the thought of running two cars now seems pretty redundant. So my current thoughts are to either:
1. Keep the C6 RS6 and use the extra money as running costs.
2. Sell the RS6 and get something else. With the reduced miles plus the extra money coming in that brings me nicely into C7 RS6 territory (unless I wait to see what the facelifted RS3?is like). The thought of having one sensible car doesn't blow my skirt up to be honest.
Thoughts? Plus- lease or go more traditional route?