New Electrical Regs - Again

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fuel duty I'll give you, but we are not talking serious money. A higher rate tax payer can probably take all this over stuff into account and offset it against lower tax bands and allowances and still come out with an overall tax rate less than the marginal rate of 55.5%.
Don't get me wrong, only getting to keep 44.5% of the money you earn is a disgrace but don't overplay your hand.
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wrote:

Your figures are not unrealistic IMHO.
If you think about this logically then when you get up on Monday morning to do your mon-fri stint you finally start earning money for yourself at about 3pm on Wednesday afternoon. Up until then you are working for Gordon Brown and his grandious tax squandering schemes.
PoP
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wrote:

Just had my old P60's out to check.
It seems overall I am probably paying 51% of my takings to the government. My marginal rate could be around 55% or so. Company car benefit (which is tax & NI on money I haven't had) at the new rates would be the equivalent of about another 5%.
Intuitively, being taxed at 17.5% vat + 40% +11% +11% + sundries one would expect to pay more than 55%. I suppose the error lies in the fact that once money has gone to the gov. in tax it doesn't attract tax at the other levels, not yet anyway, something to be thankful for!
DG
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wrote:

For which you've got the car. For me the change in CC tax rules was an absolute winner. My new Honda Jazz cost me (technically my company of course) 11,200, 25% of this (reducing) each year set against corporation tax, along with road tax, insurance and servicing. I pay 15% x 11.2K x 40% in tax = 13p.w. for the benefit of having a brand new car, all expenses paid except petrol. If the company decided to allocate 3,000 to me instead of to car expenses I'd end up with 25p.w. net + 13 less tax 38p.w. to run a car - finance, depreciation, servicing, tax and insurance. Actual costs as before say 60. So having the company car is equivalent (in my case) to several percent off tax not on.
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Absolutely. I really don't think those who complain about being taxed on a company car have ever worked out the costs of running their own - like for like.
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On Mon, 06 Oct 2003 13:27:13 +0100, Dave Plowman

I do run my own -now, and my wife always did. I reckon I could make a profit out of the no profit mileage rate over 4 years by changing to a cheap to run car (Skoda Fabia diesel) and won't be sending 2k to the revenue every year. If you are running your own company there's another issue, the company gets all the running costs as well as, if it's someone else's company it's different
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wrote:

If it's in the lowest CO2 band you now only pay 22/40% x 15% of the list price, i.e. 330 or 600 for a 10K car. If you do a lot of business mileage (I do almost none) then taking 40p/mile for your own cheap to run car probably makes more sense.
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wrote:

But I didn't want it. It's full of drawings, tools, test equipment and spare parts. I use my wife's car at weekends and don't have to travel to work.
In the first instance the IR reduced my allowances by £7.4k, this for a 5 year old Fiat Ulysse (80k miles) worth about £4.75k ! I got it reduced to £4.4k but that still seemed a raw deal.

I now don't run a company car and claim the mileage allowance. I take it you've investigated that option, it's attractive if you do a lot of business miles in a car that's cheap to own/run.
DG
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I've never quite understood this. Presumably if you pay company car benefit, you don't need a car of your own? Unless, of course, you wouldn't normally have a car - or would run an old banger doing all the repairs etc yourself.
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On Mon, 06 Oct 2003 13:25:12 +0100, Dave Plowman

I made another post at the same time as this one of yours that addresses this point in my particular circumstances.
But I would add it's a bit of a strange concept IMO to have to pay *Income* tax on money you've never received because you've not had to spend it, esp. if it costs your employer little or nothing. I hope the chancellor doesn't go any further with it I don't want to pay *Income* tax on my oscilloscope + multimeter + PAT tester USW USW.

Certainly, or your wife runs a car
The new C.Car ruels are also unfair IMO in that they don't distinguish between essential car users who have the benefit of incidental private use of a company car, and cars supplied entirely as perks.
DG
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derek wrote:

The reasoning is that the company makes available to you a car, and you get to use the car privately as well as for business. The private use element counts as income and is taxed.
If you don't (ever) use this car for non-business purposes, then you can ask your employer to forbid you to use it except for business. Then it becomes "not available" for private use and should not count as a benefit and not be taxed as income.
AIUI, ICBW, YMMV, E&OE, etc, usw.
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On Mon, 06 Oct 2003 14:02:47 GMT, Ronald Raygun

I tried that, the accountant said the IR wouldn't wear it (I'm the MD).
But I don't know that he actually went to the trouble of asking !
It's a pity because it's a large car to carry my tackle, and to be comfortable for the long journeys I do (1,130 miles the week before last)
:-(
DG
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derek wrote:

He shouldn't need to ask, but he should be able to tell you why. Maybe it's because, as the boss, you can forbid yourself private use, but could equally well re-permit it at the drop of a hat.
It seems to me that, provided your office is at home, so there is no possibility of commuting involved, then if you actually have your own separate car for private use, then a good case can be made for treating the business car as business-only.
In any case, wouldn't it be cheaper to run the business car privately and charge mileage rates to your business?
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The reason you pay tax on a company car is that it's assumed you get private use from it, so it's a benefit in kind.
And they do tax similar things. If I get protective clothing supplied, it's considered a benefit as it could be used for leisure. Similarly, a taxi paid for to take me home from work after public transport has finished is also considered a perk and taxed - even although I might have a season ticket for public transport. Same with an hotel provided for overnight accommodation when working away from home.
Strangely, these rules don't apply to MPs...

Well, presumably she needs one in her own right - otherwise she could use your company one?

Perhaps. But it's a very difficult thing to substantiate. If the vehicle is purely for company use, why not get a sign written van?
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On Mon, 06 Oct 2003 15:06:14 +0100, Dave Plowman

This is not entirely true. If you worked in a nuclear facility where you were provided with specialist clothing then you would have a damned good case for saying it can't possibly be used privately.
Of course, if Hector pretends that's not the case ask him to come round to inspect your private collection of radioactive rods which you keep in your garden shed.....

You seem to work for a strange employer! In my 20+ years working for a company which required me to work/stay away from home I never once paid extra for overnight accomodation.
It is different if you tack on some additional overnight stays due to your wanting an extra day or twos holiday in the remote destination.
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In this case, the protective clothing is just for weather.

It's nowt to do with the employer, but the IR.

I'd guess the IR hasn't started on your industry yet, as it has on TV and IT.
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wrote:

Thats strange, AFAIK if your employer requires you to work away from home, you shouldnt be taxed on that.
greg
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wrote:

I missed that, you aren't I've used hotels 2-3 times per week since 1974 and never paid tax. It has to be an expense that's related to the job that anyone would incurr (customer in Inverness, say), and not to the individual ('cos he lives in the back of beyond, say).
DG
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On Mon, 06 Oct 2003 15:06:14 +0100, Dave Plowman

Now you are just making it up.
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I can assure you I'm not.
It's easy enough to see where it comes from - some little nerd of an IR clerk thinking it's preferable to have a night at an hotel than at home.
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Dave Plowman snipped-for-privacy@argonet.co.uk London SW 12
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