Company car - no private mileage - do I need to pay tax?

tchecking_278

Hello all - have already looked here and on google etc - but are there any legal eagles able to give a definative answer please?

Just about to take a new downgraded company car (with tracker) that is completely unsuitable for family use - I work 160 miles away from office, and visit head office maybe 3 times a year.

I'm hoping to pay no tax at all and just use this for work mileage (strictly no private use - tracker will confirm) then spend money saved on a decent family car.

Question is: Can i pay no tax (benefit in kind) at all if I only use it for work useage?

Many thanks if you can shed some light

I can only find so far links to company van rules saying this is the case? Not cars..?

Cheers
Nick

BoGoF

If the car is made available by your employer for private use then a car benefit charge will arise even if you choose not to use it.

Only way to avoid it is to make the car not available but that would mean leaving at your employers premises which obviously is not practical.

Only suggestion I have is not to take the company car and use your own - perhaps negotiate a higher salary to compensate?

tchecking_278

BoGoF wrote: »

If the car is made available by your employer for private use then a car benefit charge will arise even if you choose not to use it.

Only way to avoid it is to make the car not available but that would mean leaving at your employers premises which obviously is not practical.

Only suggestion I have is not to take the company car and use your own - perhaps negotiate a higher salary to compensate?

Thanks for your answer - I have asked to see if I can use my own car then rebill mileage/wear tear etc to company, but that has just marked my card as they have already bought a fleet of 12 vehicles due delivery mid sept - one is earmarked for myself - no reply back yet from them as to if I can use my own

They see it as me causing trouble

I understand the 'non available' aspect relates to premises, but would my 'work premises' be classed as my home address? Bearing in mind I work from home.

just for context I'm being downgraded from a 'large saloon' which has been fine for main family use over last two years to a 'small size family car' which will not be of any use for private mileage and I will be well miffed to pay tax on it when I can't use it privately

It's not like I earn a fortune and I resent having to pay tax on a car that has been decided for me and is really only being used for work purposes

Many thanks

ciano125

Sod that, 160 miles away from the office, you'll kill your own car (or any car) in next to no time anyway doing that kind of mileage every day. If your budget stretches to it, go for the BMW 320d Efficient Dynamics. 70mpg is easily acheivable according to the reviews, 13% tax payable on it compared to about 18% for most other diesels too.

Alternatively move nearer work, or move work nearer to you I guess!

Lum

He said he only visits the office 2 or 3 times a year.

When I looked into this, there was a specific set of requirements that defined working from home, which included things like not having your own desk in the office.

Why not just ring your local inland revenue office and ask them?

tchecking_278

Lum wrote: »

He said he only visits the office 2 or 3 times a year.

When I looked into this, there was a specific set of requirements that defined working from home, which included things like not having your own desk in the office.

Why not just ring your local inland revenue office and ask them?

Thank you Lum - yes guess this is the best bet to call inland revenue for definative answer

I do 30k plus miles a year all over the UK based from home, have no desk in the main office (just dedicate a box room in my house to work from which also miffs me, as it's a room needed for work which I pay for via the mortgage - plus all leccy bills etc when computer is on.)

Thanks to all
Nick

Lum

tchecking_278 wrote: »

I do 30k plus miles a year all over the UK based from home, have no desk in the main office (just dedicate a box room in my house to work from which also miffs me, as it's a room needed for work which I pay for via the mortgage - plus all leccy bills etc when computer is on.)

http://www.bytestart.co.uk/content/office-home/homeworking/tax-relief-homeworking.shtml

Tax relief is available for additional expenses incurred by people working from home. A leading accountancy body is encouraging homeworkers to claim all the tax relief they are entitled to from HMRC.

ciano125

Lum wrote: »

He said he only visits the office 2 or 3 times a year.

Actually, he said "I work 160 miles away from office, and visit head office maybe 3 times a year".

Coveredinbees!!!!

I don't think it works with cars, I've got a van and you used to have to pay a bit of tax but they changed it.

emmell

I think you have to pay BIK if you take the car home. I don't think the tax man will be checking trackers, it used to be, if you did over a certain mileage you paid less tax than someone on low mileage, now it goes on emissions and list price. So by downsizing you will pay less BIK.

It looks as though they have already ordered your car so I doubt they will give you a pay rise so you don't have to use the car they have bought you. Also 30,000 miles is a lot of miles to put on a private car that you would have to insure for business use.

You sound like a typical company car driver, unhappy because you have been downgraded. At my husbands company they try all the tricks in the book to get a crafty upgrade hoping he doesn't notice, although when I said they should all downgrade in the recession even my husband didn't agree with that suggestion.
ML.

Lum

As an ex company car driver I can understand why people get upset at getting a downgrade or generally getting an awful car.

I used to do 60,000 miles a year on company business. I literally spent more time in my car than in my house. So the suggestion of a downgrade would be like downgrading your house to a pokey little hovel with hardly any heating and rattly windows that don't close properly, whilst at the same time being poorly insulated so it's baking hot in the summer and there's nothing you can do about it.

The OP works from home, his place of business is his home. Providing he avoids going to Tesco and stuff in his car AND providing the company do not allow personal use he is entitled (morally at least) to claim it as purely a tool, not a benefit. Doubly so if the car isn't even suitable for personal use.