Should employer pay for car service?

runningfool

Hi - need some help please! :-)

If a car is owned privately by an employee and has to use that car for work, not going to / from but for travelling round the country seeing clients, should the employer pay for servicing of the vehicle? They will be getting a lease car at some point but that doesn't seem very forthcoming at the moment.

My friend gets approx. 15p a mile from the company - and they charge the clients a lot more. Bearing in mind they do not own, tax, insure the car that surely cannot be right?? When asked why, they told my friend that it was to make a profit and pay their wage!!

Surely this can be challenged...? Any help gratefully received!

silverwhistle

15p a mile doesn't cover costs - HMRC allow 45p per mile, for example, and the AA publish mileage costs somewhere.

Depends what the contract and employment situation is, but at the moment the employers are taking the p***. I suggest they borrow a mate's old banger and turn up at clients in that..

runningfool

silverwhistle wrote: »

15p a mile doesn't cover costs - HMRC allow 45p per mile, for example, and the AA publish mileage costs somewhere.

Depends what the contract and employment situation is, but at the moment the employers are taking the p***. I suggest they borrow a mate's old banger and turn up at clients in that..

Ha! I'll tell them that - good bloomin idea! :-)

InsideInsurance

runningfool wrote: »

If a car is owned privately by an employee and has to use that car for work, not going to / from but for travelling round the country seeing clients, should the employer pay for servicing of the vehicle?

Its up to the terms of their contract/ company policy but if the company did pay for the servicing your friend would have to pay tax on it as a employee benefit as they use the car for private use too.

If the company pays under the HMRC allowance for mileage they can claim relief as per http://www.hmrc.gov.uk/incometax/relief-mileage.htm

runningfool

InsideInsurance wrote: »

Its up to the terms of their contract/ company policy but if the company did pay for the servicing your friend would have to pay tax on it as a employee benefit as they use the car for private use too.

If the company pays under the HMRC allowance for mileage they can claim relief as per http://www.hmrc.gov.uk/incometax/relief-mileage.htm

Many thanks!

How about them creaming a profit off the top - that can't be right if they haven't paid anything toward the car surely?

runningfool

Oh - also the car is only insured for domestic use - as they are kind of 'doing the company a favour' till they eventually get a car from the company. Does this mean they are taking all the risk?

Bantex_2

runningfool wrote: »

Many thanks!

How about them creaming a profit off the top - that can't be right if they haven't paid anything toward the car surely?

What the company charge their client is of no concern.

getmore4less

They(company) don't HAVE to pay anything.

if not happy with 15ppm ask for more if they say no then the car is not available.

probably means new job.

runningfool

Bantex wrote: »

What the company charge their client is of no concern.

OK - even though they are specifically charging the client for a car they do not pay towards?

runningfool

getmore4less wrote: »

They(company) don't HAVE to pay anything.

if not happy with 15ppm ask for more if they say no then the car is not available.

probably means new job.

I think you may be right...

silverwhistle

runningfool wrote: »

Oh - also the car is only insured for domestic use - as they are kind of 'doing the company a favour' till they eventually get a car from the company. Does this mean they are taking all the risk?

Yep! I used to use pool cars in a previous job, and once or twice was asked to use mine as there wasn't one available (or I'd found a safety issue with it ).. "Sorry, I'm not insured for business use" ... " but you can put me on the car scheme if you like"..