Can employer make employees lend out company car?

One_Bullet_Five_Zombies

My boyfriend has been asked to lend out his company car to a colleague on a semi-regular basis (when she travels out to meet clients which can be 1-3 days at a time).

We live an hour commute from his work and it would make it really awkward for him to get to work if he didn't have the car and we use it evenings etc for private use.

Obviously I know the car is owned by the company but he pays tax on the benefit through his wages and I was just wondering if anyone knew the rules around being made to do this? I've googled but can't find much.

Thanks in advance

Quick edit: This colleague owns her own car but can only do a certain number of miles in it due to her insurance limitations.

martinsurrey

yes, they can, its their car, you wont pay the company car benefit for the days you don't have the car (at least you shouldn't).

Is the car a contractual benefit? if so ask them how they will be compensating him for temporary removal of a contractual benefit.

ohreally

I think this is an interesting one potentially complicated due to the taxation payments he makes in regards of.

Her being cheap with her insurance has come back to bite her and shouldn!!!8217;t be you bf!!!8217;s problem.

One_Bullet_Five_Zombies

Thanks for your replies.

I thought as much. So would she have to pay the tax on the benefit for the days she did have it? I'm hoping that would put her off enough so that she buys better insurance for her own car.

She has also been offered a company car in the recent past but has turned it down as she didn't want to run two cars, I expect it's so she has a good excuse to get out of travelling so much (she tries to wriggle out of it often apparently through various excuses, illness etc.). Which..whatever, but my bf shouldn't have to enable her.

I'm unsure if it's a contractual benefit - we'd have to dig his contract out later and have a read over it.

getmore4less

I would be putting to the employer that any employee that needs to travel for work should be given the necessary tools for the job and if they refuse them they should supply their own

For occasional travel, reasonable compensation for use of own car or hire cars are the easy cheap option, more regular travel an allowance to compensate use of own or company car .

Did they get a car allowance as a substitute for not taking the company car?
Does the policy and contract not require them to provide a car for business needs suitably insured?

Also point out to the employer that their administrations costs will go up if you don't have full use of the car as you will need them to document it properly so you can get your tax adjusted etc.

Also point out to the employer that if you have the car taken away they will need to offer alternative arrangements for getting you to work or work from home those days

Also point out to the employer than any clauses relating to you being responsible for damage will be null if they let others drive it

The employer is looking for an easy way out due to a problem employee.

If there is an allowance as an alternative point out that if this is not resolved you will be taking the money next time the car is up for renewal you don't want someone's problem becoming yours.


hire cars are cheap they should book her the smallest one they can for these trips or get her to sort out her insurance.

Dazed_and_confused

It doesn't look like your boyfriend will be entitled to any reduction in the tax on the car benefit charge,

https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim25105

One_Bullet_Five_Zombies

Ah yeah, only 30 consecutive days of the car being unavailable would result in a reduction of his taxes.

It might be worth him negotiating working from home as mentioned on those days that she has the car, it is the sort of job he can do from home if required and I know that'd soften the blow for him a bit. I'll mention it to him.

Ozzuk

Not an area I know anything about, but if the employer were letting her use it instead of claiming mileage then I can't see any tax implications for her - we borrow company cars all the time, its not seen as a taxable benefit, though it's generally a 'pool' car.

TELLIT01

Looks like the only person losing out by this arrangement is the OP's partner. In that situation I would definitely be looking to be compensated for loss of the vehicle as he is being taxed on something he doesn't have access to.
It would seem to be entirely possible that he wouldn't have any use of the car for a week at a time if the other person's visits were Monday, Wednesday and Friday. Presumably she would take the car home on Tuesday and Thursday evening in order to be able to visit customers on the following day. When and how is the car to be return to the OP's partner? The string of questions and issues raised by this practice is endless.

getmore4less

Too many potential issues bringing them all up will give the employer the incentive to find another solution as this one become more bother than it's worth.

add 2 more
where/how do you swap.
what happens if you both need to travel.

robatwork

Enormous issues with all this. She has an accident - do you get a hire car, does she?

Sounds a bit odd to me - if we supplied someone a Co. car it would form an integral part of their contract, and once they did their company duties the car would remain with them.

However if I were your OH I would negotiate a car allowance rather than car, and then it's yours with none of the shenanigans.