Considering taking the 'cash option' instead of a company car ?

With the changes that have taken place since April 2002 many more people are being offered the chance to take cash instead of a company car.

Whilst there may be personal considerations to be taken into account, it is possible to work out the exact financial implications.

When making comparisons it is not just a case of subtracting tax off the amount your employer gives you each month. To work out the true value of your employers cash allowance 3 factors must be taken into account :

» 1. What is the value of your cash allowance after tax?

» 2. What would the 'free' company car cost you in tax?

» 3. What is the value to you of offsetting the business use of your own car to tax?

(You may be interested in this even if you don't get a cash allowance but you do use your own car for work)

In Summary :

To calculate your true monthly spending power if you have the 'cash option' take all 3 factors into account, to help you with this we have a:

» 'Cash Option V Company Car Calculator' form

Alternatively contact us as below.