Company Car Private Mileage

sunshinetours

Splott wrote: »

Well you'll pay £4500 for the first 10,000 miles. After that it drops to 25p per mile which is pretty much actual running costs per mile.

Assuming owning your own in running costs for a year to do 10,000 would cost £100 road tax, £600 insurance, £60 MOT, £200 servicing, £150 for tyres, £1272 for diesel based on £1.39/l and 50MPG you're paying £2382 just for running costs.

And we've not even deducted a figure for depreciation.

So effectively you're paying £2,117 a year to "rent" the car. You'd pay a hell of a lot more than that a year in finance on a 5 year loan.

If company wants it classified as a pool car then OP won't have exclusive use of it to run as a personal car.
I would imagine the idea of using that high rate is to discourage too much personal use. If one person in reality uses a company pooled vehicle they could end up with being assessed as having a company car.

You can't compare this with running your own owned vehicle. Your company needs to be sure what they are doing here as pool vehicles are a guaranteed target in any HMRC investigation