Company Car forced Opt In

shanemhartshorn

My company was bought out earlier this year and we are in the process of transferring over. With my old company I had opted out of the car scheme as I don't do a huge amount of personal mileage.
I have been informed that the opt out option will be removed when I get my new contract of employment and I will have to opt back in.
I would like some advise on the following:-
1. Can they force me to opt back in?
2. As I don't do hardly any personal mileage, how will the tax be worked out as I feel I will be stung for the personal benefit.
3. The car they want me to have is a Focus which has a small boot and therefore I would be unable to get my mothers wheelchair in.

Where do i stand with all of this?

Help!!!!!!

maninthestreet

Answers:

1. Yes they can.
2. The taxable benefit is based on a percentage of the car's list price, based on c02 output.
3. How big a car will you need that will have a boot big enough to hold a wheelchair?

Jarndyce

shanemhartshorn wrote: »

2. As I don't do hardly any personal mileage, how will the tax be worked out as I feel I will be stung for the personal benefit.
3. The car they want me to have is a Focus which has a small boot and therefore I would be unable to get my mothers wheelchair in.

Hmmm. Not very compatible these two statements are they?

Your employer has decided that a particular class/make/model of car is what you need for yuor job. That is their right.

If you need a bigger car for your personal life, then it is your responsibility to get one - use your company car for work alone.

Not a very green answer I accept, but it is not the employer's responsibility to provide a car for your personal needs.

DVardysShadow

shanemhartshorn wrote: »

2. As I don't do hardly any personal mileage, how will the tax be worked out as I feel I will be stung for the personal benefit.

If you don't do personal mileage at all, I believe that you can apply to HMRC not to be taxed for BIK.

Tiddlywinks

How big is the wheelchair? I've had a disabled buggy in the back of a hired Focus. It doesn't have to sit flat and the handles normally fold.

The tax payable will depend on the engine size and emissions so do some research on the implications of that as well as whether the company will charge you for your personal use per mile or as a block payment.

maninthestreet

DVardysShadow wrote: »

If you don't do personal mileage at all, I believe that you can apply to HMRC not to be taxed for BIK.

Really? Can you provide a link to the HMRC website that describes how to apply???

DVardysShadow

maninthestreet wrote: »

Really? Can you provide a link to the HMRC website that describes how to apply???

No. I remember it coming up previously, and I have always understood it to be the case. Frankly, I would be livid to be charged BIK tax on a car which I did not use because it did not meet my requirements.

I am not minded to search this out. Those who might benefit may be more motivated than me.

saintjammyswine

Company car tax is made up of 2 elements. The first is on the car itself based on cost when new, engine size and CO2 emissions, the second part is fuel. If you do no personal mileage at all (including driving to your normal place of work) then you will not have to pay tax on this part. You can either keep a record of all mileage and pay for personal usage through your wages or have all fuel paid for & pay tax on the personal miles.

Extra: Check your contract for you normal place of work. I used to be based from home and so all driving for work was classed as business mileage as my home address was on my contract as my normal place of work.

getmore4less

Can you just not have a company car, how much business mileage do you do.

This link(not dated) says if you don't use the car for personal use BIK tax is not paid.

So leave it at work and get another car to commute to your place of work.

persa

I too would like to see to see a link, please, because I'm not convinced.

The legislation talks about a benefit arising when a car is provided and made available for private use, not whether the employee actually decides to use it for that purpose.

The car would, IMHO, only not be deemed available for private use if the employer said so, but the OP hasn't said anything to suggest the terms of the new company car will be that way inclined.

Agree that commuting from home to work is generally non-business use, but I would like to see a credible source that says that leaving the car at the office will avoid a BIK. I don't think it will unless the employer says it has to stay in the company car park.