Should employer pay for car service?

wildheart83

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, they will be in deep doo doo if they are caught on company business in a car that's not got business insurance. It shouldn't cost anything extra to have it on the policy.
I remember reading about a guy recently who was a window cleaner and used his own car to collect money from a customer, and was done for not having business insurance on his policy.

runningfool

silverwhistle wrote: »

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"..

Thanks very much!

runningfool

wildheart83 wrote: »

Yep, they will be in deep doo doo if they are caught on company business in a car that's not got business insurance. It shouldn't cost anything extra to have it on the policy.
I remember reading about a guy recently who was a window cleaner and used his own car to collect money from a customer, and was done for not having business insurance on his policy.

Gotcha - ta

Bantex_2

runningfool wrote: »

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

The client agrees what they will be charged as part of the contract. What the company pay is of no consequence.

wildheart83

Sorry, silverwhistle beat me to it!

InsideInsurance

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?

It needs to have Class 1 business use, most insurers add it for free or a token charge. To add it mid term of cause attracts an admin fee

Failure to do this means your friend is uninsured but it is only him that is running the real risk.

runningfool wrote: »

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

Absolutely fine.

It may come as a surprise to you but companies make profit from their staff. We had some consultants in last year, their employer charged us about £1,200 per day for each of them where as they were on, at a guess, £90k salary so ~£345 a day

Only if they say they will charge things "at cost" could there be any sort of issues but that would be between the client and the employer not the employer and employee

runningfool

Thanks all :-)

runningfool

InsideInsurance wrote: »

It needs to have Class 1 business use, most insurers add it for free or a token charge. To add it mid term of cause attracts an admin fee

Failure to do this means your friend is uninsured but it is only him that is running the real risk.



Absolutely fine.

It may come as a surprise to you but companies make profit from their staff. We had some consultants in last year, their employer charged us about £1,200 per day for each of them where as they were on, at a guess, £90k salary so ~£345 a day

Only if they say they will charge things "at cost" could there be any sort of issues but that would be between the client and the employer not the employer and employee

No, of course it doesn't come as a surprise to me. I was merely asking if charging a client 'specifically' for something that they are not providing in any way was allowable.

InsideInsurance

runningfool wrote: »

No, of course it doesn't come as a surprise to me. I was merely asking if charging a client 'specifically' for something that they are not providing in any way was allowable.

Not only can they charge what they want it would also be subject to VAT (assuming their core service/ product is) even if the client paying for it directly wouldnt be (such as flights or mileage)

runningfool

InsideInsurance wrote: »

Not only can they charge what they want it would also be subject to VAT (assuming their core service/ product is) even if the client paying for it directly wouldnt be (such as flights or mileage)

Gotcha - ta