Company car

Hippychick1_2

Thank you AdrianHi and vaio. Vaio - you are right, I am not sure there is proper logic behind all of this - not only in accounting terms but also the damage this does to morale! Thank you so much for your help, Hippychick1

vaio

I’d be surprised if you can’t make a good financial case for keeping your car, things to maybe think about….

Try and find the actual cost to them of providing the car, I’m assuming they lease but they might buy and then punt out to auction after three years

Assume you don’t have a car…..can you do the business miles you do by public transport?

If you can what would be the train/bus/taxi cost? Do you take anyone else? Would it take longer and so make you less productive? That’s a cost too.

If public transport is not suitable, how would you do it? Hire car would make sense if you do one big trip a month but would be silly expensive nonsense if you do lots of little trips spread out over the month.

Do you carry goods/samples? What about company image?

Could they say take cars off 20 people and provide 5 pool cars?

If you can’t get them to see sense and keep providing you with a car then you could just take the mileage money and lease one of your own, the mileage money plus the tax you wouldn’t pay any more would be £250 ish a month, maybe even think about buying your existing one at the end of the term.

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DCodd

cajef wrote: »

Which I assume should be taxed.

Ok, but why is she asking how to calculate a financial loss for personal use and how much she can claim there should be no loss as it was not provided for her benefit, surely the company may give an amount that they think is fair but not what she may calculate and think she should get.

This is the thing with Company Cars, HMRC and many people these days see them as a benefit to the employee when in fact they are a benefit to the Company.

Look at it another way, your company wants to reduce costs and asks office staff to work from home via an online network. Would you be happy to have pay out for a computer, the software and an internet connection to do your job? unlikely, yet people who have to be mobile all or part of their working week are required to pay (in the form of tax) for a business tool that is necessary to carry out their duties.

You see now why compensation is not too much to ask?

Because of the attitude of "benefit in kind" for cars/vans HMRC have been and still are looking at taxing people for mobile phones, laptops and in central London, parking spaces! Where will it stop? Taxes for potential personal use of desktops and land lines at work??

Sorry rant over!

p.s. No I Do not have a Company car.

ukjoel

Worth asking the lease company for a quote.
According to carcost (which is the industry standard car costing site - updated monthly) Fabia prices after 3 year 60k are around 35%.

Therefore you could pick your Fabia up from the lease company for around £3500. It also means its yours and you wont get stung by the lease company for any dents or scratches when it goes back after 3 years.

You know the car intimately and if your that concerned about warranty you can extend the Skoda one or buy an aftermarket one for a couple of hundred quid a year.

total 3 year lease cost of a new one is £6200 with no asset at the end of 3 year. 3 year cost of keeping yours could be a couple of grand less with a free car at the end of it.

Worth weighing up both options carefully.