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Originally Posted by MEGA
Never understood how the company car thing works!
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Its pretty straight forward.
The company give you a car to use as you wish and the HMRC make you pay tax on its value and emmisions as its classed as a benefit.
On average a 40% taxpayer driving a 318D will pay £120 a month actual cash to the HMRC.
The HMRC have a chart that links the emmisions to a % cost. I think that the 318D is based on 13% of the cars value and the 320d on 14%.
You could say that all I pay for a fully funded and maintained £29K BMW is £1440 per year. That includes all insurance and associated costs.
Cheap motoring!! Except I have only got 143BHP to play with.