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does my salary level affect the level of my car allowance tax or is this calculated separately ?

2007-01-02 04:16:46 · 2 answers · asked by jaworski_artur 2 in Business & Finance Taxes United Kingdom

2 answers

For tax and national insurance purposes the car allowance is just treated as extra salary.

So yu will have 33% deducted if you are not a higher rate taxpayer (giving a net of £301.50) or 41% if you already pay at the higher rate (net £265.50).

If you are a basic rate taxpayer and the car allowance pushes you into the higher rate then the answer will be somewhere between the two.

Those percentages include both tax and national insurance, i.e. (22 + 11)% and (40 + 1)%.

2007-01-04 19:37:13 · answer #1 · answered by tringyokel 6 · 0 0

Same as me. I allow for a net figure of approx £310-320, at 22 % tax, plus national insurance.

2007-01-02 04:23:53 · answer #2 · answered by lulu 6 · 0 0

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