Company Car Tax

RAF1967

Yes yet another question about company car tax!

Here's the situation...

I work from home and am supplied with a company car. Nothing fancy just a run of the mill Passat diesel. I drive between 400 and 800 miles a week. I have a fuel card and re-imburse the company for any private mileage.

We nearly always use my wife's car at the weekend, so I only drive about 15 to 20 private miles a week in my company car. so I don't really receive any benefit from my company car.

So here's the question....

Let's say I do not use my car for any private use (not even the occasional trip to the local supermarket). I only use it fro business use (bearing in mind I work from home). Do I still have to pay tax on the company car?

chilli_dog

hopefully you are completing a mileage sheet, daily, and are not paying fuel tax?

The car would need to be returned to you office every night for you to escape the car tax. Im in the same boat as you!! Does your company allow you to opt out and use your own car?

RAF1967

yes to the mileage sheet, although its a real drag. No fuel tax which is something.

I am investigating opting out, trying to find the best options. I am thinking maybe a higher mileage BMW or Merc say £5-8K.

Any help on how I calculate if tis worth opting out, I hear mixed comments from other people!

The office is 100 miles away. Effectively the car is returned to the office every night - the home office which is my place of work. Getting the Tax guys to accept this though, might be eaier to platt fog.

chilli_dog

i no, your guilty until proven innocent with anything tax related.

chriiiiiiiis

You are taxed on basis that the company vehicle is available for your private use.

Lots more info here:

http://www.hmrc.gov.uk/cars/employee-guidance.htm

mtem74

if you can prove to taxman that your home is your office then there is a chance you could get an exemption from the car benefit charge
But it would depend on the records you keep and how goood they are. Plus you'd need something from the company saying you can not use the car privately and what they would do should it be found you had i.e given the sack.

jimmo

RAF1967 wrote: »

The office is 100 miles away. Effectively the car is returned to the office every night - the home office which is my place of work. Getting the Tax guys to accept this though, might be eaier to platt fog.

It can be done, but you need to face up to the fact someone having a nice shiny company car sitting on his drive and never using it privately is, in the taxman’s eyes, very much a rarity.
The first essential step is to ask your employer to ban you from using it privately. It would be particularly persuasive if the car was insured for business use only so that if you did use it privately you would be committing a motoring offence.
Take a look here http://www.hmrc.gov.uk/manuals/eimanual/eim23082.htm