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

getmore4less

I think a chat with the tax office is in order, they will tell you what you might be able to do.

Problem will likely be getting the company to treat you differntly from the rest with their reporting to HMRC.

What do the rest of the people think about this downgrade, group action might be a better way to attack the problem.

maninthestreet

If the OP is parking the car on their drive/outside on road, even if they work from home, it's unlikely they would be able to convince the HMRC that it is not available for private use. Despite what the OP states, it's inconceivable that they will never drive the vehicle for a non-business (i.e private) purpose. Just driving to the shops once is all it takes.

emmell

Lum wrote: »

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 ones that complain the most at my husbands company are the Directors who do very little company mileage. Their cars are status symbols. They have upper limits but always pick cars up to the maximum even if it means extras that they don't need. He never used to get involved with their selections but he has put his foot down and now he goes through the order request and knocks things like, spoilers, bodykits, dvd screens and massive alloys off the order.

Back to the topic, I don't think the op has a cat in hells chance of not paying tax on his company car. He should try to see if he can opt out of the scheme.
ML.

colino

Unless it is a pool car and it is garaged at the office, you will be seen as having a benefit in kind by getting the luxury of transport to your home. I doubt if any manipulation is going to get you the car without a tax liability.

tchecking_278

maninthestreet wrote: »

If the OP is parking the car on their drive/outside on road, even if they work from home, it's unlikely they would be able to convince the HMRC that it is not available for private use. Despite what the OP states, it's inconceivable that they will never drive the vehicle for a non-business (i.e private) purpose. Just driving to the shops once is all it takes.

Thanks all for replies - appreciated

Hi maninthestreet - as per above - I would be fully aware of what 'private useage involves' - and the car would literally end up on my drive at the end of the day - then static untill my next days work. I wouldn't contemplate just driving 'to the shops' as suggested - not even a detour to the shops on the way home - I would be able to prove this with a tracker.

Not inconceivable at all - that's why I'm planning buying a second family car for private use - hoping to use the lack of BIK/tax to offset the cost as I cannot use this company car as a family car.

Thanks

tchecking_278

colino wrote: »

Unless it is a pool car and it is garaged at the office, you will be seen as having a benefit in kind by getting the luxury of transport to your home. I doubt if any manipulation is going to get you the car without a tax liability.

Hi Colino - but my home is my office?

tchecking_278

getmore4less wrote: »

What do the rest of the people think about this downgrade, group action might be a better way to attack the problem.

Interesting thought - thanks - I'm not aware of any 'salesmans/womens union though'

One person I know has already mentioned looking into 'custom and practice' although I had no specifics ref vehicles in my contract over 7 years ago.

For detail I'm changing from an Audi A6 to a honda civic

I understand times must - just don't want to pay tax on it as I won't use it outside of work.

colino

Your company car will be registered at one of your companies addresses for V5C and insurance purposes. Unless you drive there, pick it up, use it and return to base every day, then you will be assessed as having benefit in kind. On another point, is your company trying to allude to you that you are somehow self-employed because you work mainly from home?
I would have thought though, that like other companies, they would see the wisdom of giving you the opportunity to get a mileage rate instead.

johnnyroper

maninthestreet wrote: »

If the OP is parking the car on their drive/outside on road, even if they work from home, it's unlikely they would be able to convince the HMRC that it is not available for private use. Despite what the OP states, it's inconceivable that they will never drive the vehicle for a non-business (i.e private) purpose. Just driving to the shops once is all it takes.

dont know exactly how it works but i have a company vehicle allocated to me that returns home with me every day/night but i have never paid any tax in the 6 years i have had a vehicle.thay just give us a mileage book to prove no personal use.

Coveredinbees!!!!

maninthestreet wrote: »

Just driving to the shops once is all it takes.

If it the same rules as with vans you can do the odd trip to the tip (well you could until they stopped vans going in to the tip) or to the shops. Of course you can easily loose a few miles here and there