Can my employer take away my Company Car?

getmore4less

Caroline_a wrote: »

34p per mile sounds low to me, most businesses adhere to the tax level which is 40p now I think.

45p/25p

http://www.hmrc.gov.uk/rates/travel.htm

getmore4less

Checkmate wrote: »

This looks like an employer demotivating an employee into resigning. Oh well.

Agree, ask them why they want you to leave.

Deargan

I know re: the remuneration being low, its a cause for complaint in the company but that's what it is.

I use it for both private and buisness miles but the buisness trips are pretty short so in 2012 they only totalled 2,500 miles.

I really appreciate these responses. Have I got any room to negotiate what they replace the car with?

Deb_S_2

Hi there

Does your company have a written policy on the allowance given in lieu of a car? If there is no written policy then your contract as stated in the OP shows that there can be negotiation.

In lean business times we need to be mindful of costs, and less than 3k business miles per year simply won't justify a company car in most companies.

Have a look at what it would cost you to run a car per year and use that as your starting point for negotiations (bear in mind the increase in tax and ni that this will incur). Make sure you add in the cost of insuring your car for business use if they will still want you to so some business miles (or ask them if a hire car/pool car will be provided for business journeys).

Getting you to and from work is not the companies responsibility, so they will try to negotiate costs with that in mind - i.e they will probably not want to pay the full cost of you running a car.

38ppm is the standard rate where I work for using a personal vehicle for business use.

spacey2012

At 34p a mile you will be subsiding the company from your wages.
Probably to the tune of 50p a mile at least.
Transport is the greatest cost to an employer.
If you have to start subsidising the firm, it might be a early warning sign the company is in trouble.

Another point is insurance companies are tightening up very quickly on people using private cars for profit of an employer and many falsely think they are insured to do so by adding business use on to SDP policies, most of these only cover you in connection of your own bussines, not where you are supplying a employer your own car for them to use as a company vehicle .

Takeaway_Addict

spacey2012 wrote: »

At 34p a mile you will be subsiding the company from your wages.
Probably to the tune of 50p a mile at least.
Transport is the greatest cost to an employer.
If you have to start subsidising the firm, it might be a early warning sign the company is in trouble.

Another point is insurance companies are tightening up very quickly on people using private cars for profit of an employer and many falsely think they are insured to do so by adding business use on to SDP policies, most of these only cover you in connection of your own bussines, not where you are supplying a employer your own car for them to use as a company vehicle .

Thats just not true is it now.

somethingcorporate

Takeaway_Addict wrote: »

Thats just not true is it now.

Not even remotely accurate

In the £10m budget I look after (which is just people and associated) costs about £750k of that is travel and subsistence. £9m of it is wages.

spacey2012

You can do very little about wages, tax, national insurance, holiday pay, but the 750K
Get your employees to subsidise just half of that and you are turning a nice profit.
Expenses and costs are not the same.
One you can change, one you can not.

somethingcorporate

spacey2012 wrote: »

You can do very little about wages, tax, national insurance, holiday pay, but the 750K
Get your employees to subsidise just half of that and you are turning a nice profit.
Expenses and costs are not the same.
One you can change, one you can not.

It's a valid point, but you said the greatest cost to an employer was transport.

spacey2012 wrote: »

Transport is the greatest cost to an employer.

It may be the greatest expense (or up there with hotel stays etc) but it is certainly not the biggest cost which will almost always be wages.

getmore4less

max you could save on transport is £750k.

Thats 8% of the salary budget a much easier target.

Personal use of a company car is renumeration not expences.

thats what is being targeted here the subsidy of the business miles is secondary.

the key is to establish the change in renumberation that is needed to replace the car.

Then a campain to get buisiness expences up to realistic levels. or refuse to use your own car.