Company car or not

Silver_123

Sorry if this is not in the correct place. Please move it if necessary. I didn't know the best place.

I have a company car which I only need for certain times of the year. So I actually won't use it for work for some time. However I have the use of this car all year.

Can anybody advise me if I would benefit in the amount of tax I pay to buy my own car and just use the company car when necessary. I seem to pay a lot of tax. I realise I have no bills for it but out of choice I wouldn't have such a huge car. By the way it has to be this car as it tows a large trailer at certain periods of the year.


The list price is £28500 and my cash equivalent is £7720. The co2 is 159, 2.2 litre and it's diesel.

I do very little private miles. I would be happy with a little run around. I have no family that needs the 7 seats.

Any thoughts please? I wonder whether to take out a bank loan and buy something or just keep going with this big car?

Thank you.

bod1467

What do you mean by "just use the company car when necessary"? Are you saying you'd still keep the company car (and pay the tax on the BIK)? If not then what do you mean - who would be providing (and paying for) that car?

If you're doing "very little private miles" then I don't see you gaining any advantage in paying for an additional private car.

AdrianC

Are you a 40% taxpayer?
If you gave the company car up, how would your employer do the job the car is currently available for? Short-term rental?

Silver_123

I mean if I could prove to the taxman I only used the company car for work as I would have my own car for my private use

Silver_123

No not 40% tax payer

Silver_123

And I pay about £300 a month just for having the car. I'd rather the £300 was in my pocket.

Lomast

Get rid of the company car and get the company to rent a Discovery or similar from someone like SHB hire when you need to move the trailer?

sillygoose

Yes that is legitimate, as long as you only use the company car for business (Would it be a problem that the company car would be laid up most the time?). You have to be disciplined on this though. if you get caught out using it privately just once they will assume its more and start doing unpleasant calculations and back charging (HMRC that is).

That leaves the issue of buying, maintaining taxing and insuring your own vehicle for £300 a month (and the BIK rates soar over the next few years so that will rise considerably year on year)

First how would you fund the purchase. If you have enough to buy outright all the better otherwise its a loan and interest eating into your payments.

Or if you can raise a big enough deposit there are new car deals which are pretty cheap, like £99 per month. (but often with a large final payment too)

peachyprice

When you do use it how long do you use it for? Is it the odd weekend, is it for a month at a time?

Could the company not use it as a pool car and you just collect it when you need it?

Silver_123

It varies. But got no use for it now til November

Le_Kirk

Maybe the rules at HMRC have changed but when I had a company car, I was taxed via my P11D for the car "being available for private use." By this I assumed it meant evenings and week-ends. As I worked overtime every day (without pay!) and a lot of week-ends, I argued with HMRC (who were inland revenue in the old days) that, as I was working at week-ends, I could not use the car, therefore I would like a tax rebate please. Letter after letter between us and the final line of the tax person's letter always was "the car is available for private use." I never won the argument.