Company Car

ChopsMcgee_2

Hi All,

im not sure if this is in the right place but I have just recieved this memo from work;

"as previously discussed and intimated many times XXX has introduced a common company car policy across the whole XXX organisation which is applicable from last week.All company cars will be leased directly through XXX.There is also now a XXX standard car allocation. The details are enclosed in the attachment and the formal letter is enclosed below. As far as we understand at this moment there is no opt out option. We are waiting for total qualification of this point. This now means any engineer due for a replacement car will now use the XXX system described."

Is this correct?

As far as I was aware I thought you could not be forced to take a benefit?

Can anyone clarify this, and maybe provide some information.

thankyou

laticsforlife

I think by Opt-out, they might mean having money instead of a car, which some schemes offer, so you can buy the car you want, and get taxed differently.

I don't think it means that you HAVE to have a car if you don't already - after all you could just dump it in the office car park and never use it!!

Savvy_Sue

I disagree, some companies may (and I think this one is) insist on a certain standard of car, and by saying "there is no opt out" I think they are saying that if you are required to have a car / are an essential car user, then it has to be a company car, leased through XXX.

However, I could be wrong.

Also I'm not sure I'd see this as being 'forced' to take a benefit. I think that if the company require you to have a car, they can possibly require you to have one of theirs, IYSWIM.

Chops, have you asked the company?

thenudeone

laticsforlife wrote: »

I think by Opt-out, they might mean having money instead of a car, which some schemes offer, so you can buy the car you want, and get taxed differently.

I don't think it means that you HAVE to have a car if you don't already - after all you could just dump it in the office car park and never use it!!

But you would be taxed on the benefit in this case!

zygurat789

thenudeone wrote: »

But you would be taxed on the benefit in this case!

No you wouldn't

MarkyMarkD

Of course they can insist that you use a company vehicle for all company mileage. That isn't a taxable benefit - as long as it's used solely for company mileage, and left at company premises overnight.

If you are based any distance from work, though, that would be pretty daft because you would be voluntarily adding on the home-to-work travel time at both ends of your working day (assuming that otherwise you would simply travel home directly from your last work location).

thenudeone

zygurat789 wrote: »

No you wouldn't

If your employer puts it on the P60 then you would. Full stop.

zygurat789

thenudeone wrote: »

If your employer puts it on the P60 then you would. Full stop.

Can't be done

MarkyMarkD

P11D surely. But anyway, if the employer states it's a taxable benefit, it is. If they don't, it isn't (well, unless they are choosing to misreport benefits and then it's them who are in trouble). If it's not used for any private use (including home-to-work) then it's not a taxable benefit.

paulus

Correct, P11D and not normally P60.

Bear in mind that if it is available for private use it will be a taxable benefit, even if not used privately. To avoid tax the terms on which the car is made available must prohibit private use.