Company car: choices and tax

D

Donny31

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Greetings all

I have to replace my current Honda Jazz company car soon. Has to be hatch and my limit is R265 000. Any suggestions?

Also, how does one calculate the tax implications? Do I need a logbook now?

Ta
Don
 
Guilietta.

Edit: or Polo GTi if you want something fast. Just please not a Golf.
 
Last edited:
K so the tax consequences are:
Start with the determined value of the car, which is the cash cost of the car (incl VAT).
Then the value of the fringe benefit is 3.5% of the determined value, per month. If the car comes with a maintenance plan then it is 3.25% per month.

If you keep a detailed log book, then you can get a reduction of the value of the fringe benefit above, by multiplying it by business km's/total km's.

Then, if you bear the full costs of licensing, insuring and maintaining the car, you can further reduce the value of the fringe benefit by the amount incurred x (private km's/total km's)

Lastly, if you bear the full cost of fuel, you can reduce the value of the fringe benefit by private km's x 81.5c (provided the new car costs R265 000)

To get any reductions you will need to keep accurate records (no more reductions based on deemed expenditure).

Hope that helps :) Do consult a tax consultant just to make sure of the above.
 
Donny31 said:
I have to replace my current Honda Jazz company car soon. Has to be hatch and my limit is R265 000. Any suggestions?
Click to expand...

You can add these hatchbacks to the list:
- Honda Civic 1.8 EXi (reliable and sporty)
- Kia Cerato Hatch 2.0 (very spacious - lot bigger than Polo and Golf)
- Toyota Auris (boring and reliable)
- Volvo C30 (ugly IMO but some people think it looks nice and it's a Volvo so good quality)
- Opel Astra 1.4 Turbo Enjoy (what a cheesy name)
 
Thanks everyone. Never thought of the Alfa. Looks pretty good on paper so will take it for a spin! The Polo GTi would suit me too since it has the DSG box and cruise control at a fair price.

The tax thing will need to be checked. Not willing to pay through my nose for a car that will never be mine....
 
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