Cost calculator paying cash
Ford Mondeo 2.0TDCI |
|
| A: Cost of car (Inc vat) |
£16,000.00 |
| B: Sales proceeds after 3 years |
£4,760.00 |
| C: Cost of using vehicle = A-B |
£11,240.00 |
| D: Tax saving = Write down allowance X tax rate |
£3,147.20 |
| E: Cost of taking money out of business = A X 5% per annum (COMPOUNDED) |
£2,522.00 |
| F: Cost paying cash = C-D=E |
£10,614.80 |
| |
|
Cost calculator using hire purchase
Ford Mondeo 2.0TDCI |
|
| A: Cost of car (Inc vat) |
£16,000.00 |
| B: Sales proceeds after 3 years |
£4,760.00 |
| C: Cost of using vehicle = A-B |
£11,240.00 |
| D: Tax saving = Write down allowance X tax rate |
£3,147.20 |
| E: Interest charges = A X 5% per annum (not compounded) |
£2,400.00 |
| F: Tax saving on interest = E X tax rate |
£672.00 |
| G: Cost using hire purchase = C-D+E-F |
£9,820.80 |
| |
|
Cost calculator using contract hire
A: Total rentals over 36 months |
£12,867.94 |
| B: Allowable rentals (100% or 85%) |
100.00% |
| C: Amount allowable against tax A X B |
£12,867.94 |
| D: Tax saving = C X tax rate |
£3,603.02 |
| E: Deduct 3 years road fund licence (to compare) |
£450.00 |
| F: Total cost using contract hire = A-D-E |
£8,814.92 |
