Implications Of Keeping Company Car As Part Of Redundancy Package

Andrew1965_2

I was recently made redundant and received a tax free cash settlement of less than £30k

As part of my severance package I also negotiated to keep my old company car, for the remaining 2 1/2 years of its lease

I now have another job, paying a car-allowance, on which I pay tax at 40%

Can anyone advise if there is a tax laibility on the car. Is it still recognised as a company car even though I no-longer work for the company

Thanks

getmore4less

You should have raised this at the time you were made redundant and took the package, the new job probably makes no difference tothe tax status.

(but will for the actual tax if due)

jockinleeds

If you've taken over the lease then I would say that its technically your car and you will run it as such.
As it is not provided to you then it cannot be classed as a benefit therefore you should not be taxed on it. Thats how I see it.

I'd be pretty miffed to be paying co car tax when I dont have a co car anymore? Doesnt make sense - Tell the taxman that you no longer recieve this benefit!