I'm currently job hunting and need to understand what sort of salary range to look for in advertised jobs.
Say my basic salary is £45,000. My work provide free lunches and my mobile phone so I estimate them to be worth a combined amount of about £1,000 per year, bringing my package to £46,000 per year. That's the easy part as there's no tax due on either of those items.
But, I don't know what to add to take into account my company car.
The company pay the lease on the car which is £430 per month so initially I thought if I were to lease that car myself it would cost me
12 * £430 = £5160 per year
Making my total package £51,160. But it occurs to me that were I to pay this lease myself out of my net salary, I'd already have paid tax on that £430 so do I need to account for that too?
However, there is also the "benefit in kind" (BIK) income tax due on the car where HMRC tax me based on the equivalent amount the car adds to my salary (which is based on a percentage of the list price of the car, with the actual percentage applied being a function of the CO2 emissions and fuel type. Because why make things simple?).
So for this year, 2017/2018, the Taxable Benefit Value (the salary equivalent value) of the car is calculated to be £9,355. This means, based on my salary of £45,000, the amount of tax I will pay on that £9,355 is about £3,450.
So which of all these values do I add to my base total of £46,000 to come up with an estimate of my total package?
Is it the lease cost?
£46,000 + £5,160 = £51,160
The Taxable Benefit Value?
£46,000 + £9,355 = £55,355
Or the amount of tax I'm actually paying?
£46,000 + £3,450 = £49,450
Or is it something different that I've missed?