Losing Money on Company Car, advice?

comeandgo

The revenue rate is reviewed every three months. It does increase at times. Try and get some training on better driving techniques to increase your miles to the gallon. As we don't get anything from employer for private mileage there is a tax benefit. You could be the same.

sheramber

fatrab wrote: »

On P87 guidance there is now the following statement:


Using a company vehicle for work

You’ll need a summary of your calculation with any claim for relief on what you’ve spent.

If the company car driver paid out for repairs, tyres, insurance etc and was not reimbursed then yes he could possibly claim tax relief on the amount spent. Note it is tax relief, not the money reimbursed.

However, normally running costs for a company ar and paid for by the company.

BoGoF

Why dont you go back to running your own car?

fatrab

sheramber wrote: »

If the company car driver paid out for repairs, tyres, insurance etc and was not reimbursed then yes he could possibly claim tax relief on the amount spent. Note it is tax relief, not the money reimbursed.

However, normally running costs for a company ar and paid for by the company.

Yeah, I've never heard of any company expecting the employee to pay for these things either. I've used the P87 and self assessment for the past 12 years for my mileage expenses but I run my own car. I know of company car drivers who have used (or abused) the P87 for the exact reason that the OP is stating.


I'd have thought this was changed in 2016 to allow relief to be claimed on the difference between what you spent on fuel and what you were paid for fuel by your employer. Would be quite a hard calculation to justify though with varying mpg's depending on driving conditions etc....

fatrab

BoGoF wrote: »

Why dont you go back to running your own car?

OP's new job came with company car, I'm guessing he doesn't have that option.

Head_The_Ball

akira181 wrote: »

...Last month alone, I spent £130 in fuel and only getting £53 back on expenses. My personal mileage is around half of what my business mileage is, so I'm definitely losing out. £50 in March at least.....

Although you may be losing out £50 per month on your work mileage, surely you are saving on your personal mileage as you only have to pay for the fuel you use.

Is the capital cost of the car, insurance, VED, servicing, repairs etc paid by the company?

It would cost you far more than £50 a month to own your own car for personal use.

Do you get taxed on the benefit of a company car?

Am I missing something?

Zero_Gravitas

akira181 wrote: »

I haven't filled my tank in a long time cause I realised that the weight of a full tank costs me roughly 6 to 10mpg and makes the 1.6L engine really sluggish.

I too drive a VAG 1.6 diesel - although in my case it's in a Skoda Octavia. However, having recorded the mileage for every single tank of fuel for its 34000 miles so far, I can say with absolute certainty that the weight of a full tank of fuel makes no discernible difference to the consumption, let alone 6-10 mpg. Assuming you have a 50 litre tank, then the weight of a full tank of fuel is about 45kg, which is not even the weight of an average adult. Do you get the same mpg change with a passenger in the car? If so, I'd suggest getting the car looked at, because there is clearly something wrong with it.

forgotmyname

akira181 wrote: »

I haven't filled my tank in a long time cause I realised that the weight of a full tank costs me roughly 6 to 10mpg and makes the 1.6L engine really sluggish.

Missed the decimal points there? 0.006 to 0.01mpg difference between a full tank and 1/3rd of a tank.

A mentioned your adding say 50kg, which i assume is less than you weigh, and neglible compared to the weight of the car, 1300kg+??

You spend £130 on fuel and half or 1/3rd of that is for your personal mileage?

We will take a 3rd as a worst case? You spend £130, £86.66 of that is business use and £43.34 is your own personal use.
So the company car costs you £10 a month, and you get no repair worries no servicing costs etc etc??

Is it such a bad deal? If your personal mileage is higher then you maybe into profit.

Have i got this wrong?

MEM62

akira181 wrote: »

I started a new job 6 months ago and it came with a company car, a 1.6L VW diesel.

akira181 wrote: »

I'm definitely losing out. £50 in March at least.

You are loosing a lot more than that. Have you taken income tax into account?

I have a company car and am in the fortunate position of having a wide choice of cars. I am currently running a 1.6 diesel car with fairly low emissions and, despite the fact that my round trip to work is 80 miles a day, I could run my own car for less than I pay in tax on the car & fuel benefit.

When the lease is up on this one I am going to push for a car allowance instead.

For anyone in the 40% tax bracket the days when company cars were a benefit are long gone.

arcon5

I don't think p.o. will be paying income tax on it