HOW much does it cost to run your family car? The latest, updated edition of The 1996-97 Money PAYE and Tax Guide from the Taxation Advice Bureau devotes, with the help of the AA, a new chapter to "Getting the Most out of Your Car" and takes a detailed look at both standing and operating costs of two average size family cars as well as the impact on a family income of running a company car. This new section is particularly pertinent in light of the changes in benefit in kind rules for certain company car drivers.
Using figures provided by the AA, the TAB Guide finds that anyone running a car with an engine capacity of between 1001-1250cc should expect to pay about £3,454 in standing charges, that is, tax, insurance, licence, depreciation, interest costs garage/parking, AA membership and about 14.08 pence per mile driven in operating costs - ie. petrol, oil, tyres, servicing, repairs. For a larger 1751-2000cc car, the standing costs rise to £4,669 per year and 18.49 pence per mile driven.
The section devoted to the benefits of having a company car is both clear and informative - BIK is one of the most complicated tax reliefs available - but the TAB Guide also compares the pros and cons of having a company car or keeping your own vehicle and opting instead for a salary adjustment in lieu.
More generally, the TAB Guide provides good technical illustrations of all personal and corporate taxes, it shows you how to fill out various tax forms (and how to apply for refunds), and provides clear definitions of different savings and investments, insurance and pension products and the cost of various loans. There is also a very useful section devoted to the tax and residency implications of working and living abroad plus a specific UK tax summary. Available from bookshops or directly from the Taxation Advice Bureau, Eagle House, 14 Wentworth, Lr Grand Canal Street, Dublin 2, Telephone (01) 676 8633. The TAB Guide costs £6.95.
Meanwhile, the tax and management consultants have also been busy producing their tax guides for the 1996/97 tax year. First off the mark was Craig Gardiner Price Waterhouse with its Pocket Tax Book, a handy little booklet which itemises all the major personal and corporation taxation changes (including the PAYE and PRSI changes), a changes to Capital Gains and Capital Acquisition tax, urban renewal tax, VAT, custom and exercise changes. The booklet is available from Craig Gardiner Price Waterhouse offices in Dublin Cork and Limerick. KPMG's booklet, which is very user friendly, is expected out shortly.
