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Old 11th January 2011, 04:56 PM
PsYcHe PsYcHe is offline
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Join Date: Jan 2009
Location: Blantyre, Scotland
Posts: 4,136
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Company car also == More tax.

You pay based on the CO2 emissions and a percentage of the car's value.

http://cccfcalculator.hmrc.gov.uk/CCF0.aspx

Using a new 136HP standard A4 Diesel @ 25k (120g CO2) gives you a tax liability of about £1300/year (assuming no fuel card) which means your tax allowance goes down by 3250.

If you go with the SE Quattro 170PS @ 29k (145g CO2), takes that tax code down by a whopping 6 grand, meaning you would pay out nearly 2.5k extra (assuming you'd be on 40% tax).

I'd go with the allowance option.. If you get a decent accountant, they should be able to get you more money back at the end of the year too.
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