Company car tax

BoGoF

Is there any benefit from using a company car on company business?

If I use my own car, my company pays me 15p/mile and I claim the extra 25p/mile as a tax allowance - they also pay me a monthly car allowance that is subject to tax and NI. Wrong you can claim tax relief on the extra 25p (now 30 actually) so depending on your tax rate will be 20 or 40% of the amount claimed.

If I use a company car, purchasing fuel myself, again the company will reimburse the 15p/mile for fuel, but can I still claim the residual 25p/mile against tax to offset the company car tax I would be paying or is there some other way to reduce the tax liability by actually using a company car for business purposes? No you cannot claim the extra 25p the AMAP rates relate only to use of your own vehicle

CKhalvashi

I’m the only one company-wise that has my own car, however for work use I state what make (Ford), model (Mondeo or S-Max) and even colour (black or white) the cars have to be. It’s easier for me to do this and causes far less arguments, and it also ensures I can make sure all cars are replaced every 18 months/75000 miles, whichever is first.

About 90% of ours (fleet of 30) are black still, however we’ve only brought white in after I got mine in September!

I think with most companies it’s a case of choice, however as ours are insured to taxi-standard and maintained as much (despite not going anywhere near the taxi/PHV mark, purely for company peace of mind!), for me it’s the easiest way to make sure we at least have a roadworthy fleet. Also, with a steady order of 2 going through Polar Ford each month, we are getting around 25% off the cars, meaning I can sell them to staff for family use for more/less what I paid for them!

Basically, it’s upto company choice!

Edit: 45p can be claimed back on the first 10,000 miles from April 2011, and 25p from 2010. If you need business insurance, this can be claimed back, too!

Edit: I’ve agreed, after having one for the last 2 days as a courtesy car to allow the Grand C-Max onto the fleet! Very good car!