Can my company take away my company car??

katelou1980

Hello

First time posting but need some advice please!

I've been with my current company for 8 years - 4 of those I have had a company (needs) car for which I pay tax on. The car is used for business and personal mileage and I do approx 8000 business miles a year.

I don't have a fuel card but just claim the mileage on my expenses.

My job role is not changing but I've been told that they are taking away my company car in the summer and that no one in my role will have one.

I assumed that there would be some financial compensation on my salary for the loss of this big benefit but I'm told not. They have told me that I will be better off as I'll be paying less tax (I think this will be c£100 a month!). However, £100 a month for losing a fully insured, taxed company car with RAC cover is not much compensation

I have moved through the company in several roles and only ever signed a contract when I joined (in admin and it didn't have company car in the contract).

Can they legally do this (I expect, yes!). If they can, is there any other way they can give me compensation that isn't pay related (I need to give them some other solutions I think!!)

Any help would be great,

Thanks in advance

Kate

molerat

How are you going to do your business mileage now ?

pinkshoes

£1200 a year would pay for tax, insurance and servicing of your own car to commute to your place of work, and I presume you'll have use of a pool car for all business trips?

I don't think you can ask for compensation for having to pay your own petrol to and from work.

crackerberry

If they remove the car are they providing a pool car or expecting to purchase your own car now and use that for business use in the same way?

If its the latter then yes you save in tax, but you're still worse off when taking into account the cost of purchasing a car and wear and tear on it etc.

TighterThanTwoCoatsOfPain

you're horribly worse off!

I had the choice of taking a car of taking 4k in salary... car everytime.. I couldnt buy / lease, tax, insure, service the standard of car i can have (not taking into account it could use £800 worth of types in a year!)..

I would be spewing if i was even forced to take the cash option over a car (which i guess they could do)..

in your position i would be going crazy.. It a reduction in your overall package.

Can they do it? i havent got a clue..

getmore4less

If you use your own car for business the allowance should go up.
the tax free amount is higher for own use cars.


Other option is don't insure your car for business use and they will have to provide a pool car or hire one when needed.

katelou1980

Thanks so much for all of your replies. My understanding at this time is that I will be expected to use public transport and commute to my customers (we have good rates with trainline and I have a company credit card which I can claim the money back for). I don't have a lot of customer visits a week but a lot of them are some distance, hence my high mileage.
I don't believe I will be asked to use my own personal car for work (the one I don't have!) but the loss of the use of a company car is my biggest concern.
I may be wrong but a colleague has told me that if a company gives you a benefit for 4 years or more, then it becomes part of your contract and packaage, whether written or not - does anyone know if this is true?

At the moment, I am definately not being offered any cash compensation - just having the car taken away from me - not sure what is a reasonable amount to fight for, or if I even have a leg to stand on!

maninthestreet

So all your customers are located near a railway station??

DVardysShadow

katelou1980 wrote: »

... At the moment, I am definately not being offered any cash compensation - just having the car taken away from me - not sure what is a reasonable amount to fight for, or if I even have a leg to stand on!

I think you are better off regarding the time you had the car as a perk or bonus. If you start taking money for the loss of that bonus, you begin to open the door to the company making claims on YOU to provide a car. That is a hole I would not want to step into.

Judith_W

I'm pretty sure then even if you don't have the car in your contract, the fact that you have had one for so long means it forms part of your contract. All I can suggest is talking to ACAS?

katelou1980

Thanks all - I'll contact ACAS and see what they say....