I have a query, i’m starting a new role with the following salary structure:
Basic - £35,000
Bonus - £2,500 (minimum) every quarter
The question I have relates to the company car. My basic has me in the 20% tax bracket. But with my bonus I will get into the 40% bracket.
Obviously the company car payment doubles when you get into the higher tax bracket. When exactly will I start paying the higher company car tax rate?
Will it be at the end of the first quarter when I get my first bonus? (My thinking behind this is they might calculate using a projection of basic + bonus)
Or will it be at the end of the year when I actually earn the full 45,000 and I will pay the higher company car tax in the next tax year?
If anyone could help me with this I would really appreciate it, i’ve struggled to find an answer online for this.
Thanks
