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Company Car Tax - Unfair
steve_london_2
Posts: 2 Newbie
in Cutting tax
Do you think we should be stung for Company Car Tax, when all private mileage is paid for and the car is a neccessity for the job?
MP's can claim for second homes plus all other types of additional expense but low earners are losing their basic tax allowance immediately for driving a car at work.
It would be nice to return to the 50% discount if you travel more than 18,000 miles in a year. I currently drive around 65,000 miles a year at the moment.
What do you think and does anyone know a way to reduce the tax liability.
Cheers steve
MP's can claim for second homes plus all other types of additional expense but low earners are losing their basic tax allowance immediately for driving a car at work.
It would be nice to return to the 50% discount if you travel more than 18,000 miles in a year. I currently drive around 65,000 miles a year at the moment.
What do you think and does anyone know a way to reduce the tax liability.
Cheers steve
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Comments
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You could stop using the car for private mileage - that would reduce the tax liability to zero.0
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Even if you did not use it for private mileage you still have to pay the benefit in kind tax. The car is made available for you to use, it's up to you if you use it privately or not.
We have a nice expensive company car and yes I complain what it costs us in tax, but at the end of the day it would cost us far more to put a car on the road than the perk costs us in tax.0 -
Thank you for your replies, as you suggest I could do zero mileage, but would still receive the tax liability. I am unable to use the car privately most of the time because it is full up with spare parts and paperwork.....
I do think we should still receive a reduction where the car is not just a perk.
steve0 -
steve_london wrote: »Thank you for your replies, as you suggest I could do zero mileage, but would still receive the tax liability. I am unable to use the car privately most of the time because it is full up with spare parts and paperwork.....
I do think we should still receive a reduction where the car is not just a perk.
steve
The taxman's view is that the car is available for you to use privately. If you can get in and drive it, it's taxable. He would most likely also suggest that you clear the car out, if you want to use it
It's the availability for private use that's taxed - not the actual private use itself.Warning ..... I'm a peri-menopausal axe-wielding maniac0 -
steve_london wrote: »I am unable to use the car privately most of the time because it is full up with spare parts and paperwork....
Persuade your employer to give you a van instead. With only minimal/incidental use (examples given on HMRC website) there'd be no taxable benefits in kind. These days there are plenty of smaller "vans" that are comfortable and fast enough to suffice for long term use and high mileage.0 -
If you're that keen, leave the company car at work, just find your own way back and for from work.
No private use at all then.0 -
longforgotten wrote: »If you're that keen, leave the company car at work, just find your own way back and for from work.
No private use at all then.
Unfortunately, this won't work ..... IF the car is available for private use. It's not the actual use that's taxed..... it's the availability.Warning ..... I'm a peri-menopausal axe-wielding maniac0 -
Originally Posted by longforgotten
If you're that keen, leave the company car at work, just find your own way back and for from work.
No private use at all then.Unfortunately, this won't work ..... IF the car is available for private use. It's not the actual use that's taxed..... it's the availability.
I had hoped it would then be classed as 'pool' car and then no private use. The car should be insured for other staff members to use. The car is at the business premises in out of work time , blah, blah. Staff are told that its not available for private use AT ALL. The vehicle is not available for private use as it would be considered a breach of the terms of its use
I know of a Ltd company with cars used by staff for work business and the cars kept on the work premises when not used for work. VAT claimed on purchase of vehicle and no p11d as not company car. Ltd Co has had VAT visit etc etc and all ok. Have they just been lucky ?
I think it would be worth a ring to check with HMRC...0 -
longforgotten wrote: »Originally Posted by longforgotten
If you're that keen, leave the company car at work, just find your own way back and for from work.
No private use at all then.
I had hoped it would then be classed as 'pool' car and then no private use. The car should be insured for other staff members to use. The car is at the business premises in out of work time , blah, blah. Staff are told that its not available for private use AT ALL. The vehicle is not available for private use as it would be considered a breach of the terms of its use
I know of a Ltd company with cars used by staff for work business and the cars kept on the work premises when not used for work. VAT claimed on purchase of vehicle and no p11d as not company car. Ltd Co has had VAT visit etc etc and all ok. Have they just been lucky ?
I think it would be worth a ring to check with HMRC...
The confusion here seems to be when a car is considered as being available for private use. Your employer either decides to let you have it privately or not, and it is then up to you whether you actually use it or not.
Previous posts about leaving the car at work are correct, BUT you need to confirm with your employer as to the private aspect. If they still consider you to have private use, you will have a benefit.
I would suggest talking to your employer and asking for the car benefit to be withdrawn. Get this in writing from them, then you make your own way to work and use the car during working hours for business then hand it back at the end of your shift. This will then not be a benefit but it has to be agreed with your employer.
The Ltd company you refer to is acting correctly as they are not providing the cars to the employees for private use, so there is no benefit. As you do currently have private use you will pay a benefit until you arrange with your employer for the 'private' aspect to be withdrawn.0 -
longforgotten wrote: »I had hoped it would then be classed as 'pool' car and then no private use. The car should be insured for other staff members to use. The car is at the business premises in out of work time , blah, blah. Staff are told that its not available for private use AT ALL. The vehicle is not available for private use as it would be considered a breach of the terms of its use
I know of a Ltd company with cars used by staff for work business and the cars kept on the work premises when not used for work. VAT claimed on purchase of vehicle and no p11d as not company car. Ltd Co has had VAT visit etc etc and all ok. Have they just been lucky ?
As Kitty suggests, you need to get your employer to declare the car as not available for private use. Once they do this, they will not declare it on a P11d in future.
Your employer might not be willing to do this, for a number of reasons. One of which is likely to be that the risk of theft is lower, if the vehicle is at home, rather than unattended at a place of work. Talk to your manager and/or HR and see what they say, though.Warning ..... I'm a peri-menopausal axe-wielding maniac0
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