Company Lease Car - Two Options

Matt_1985

Hello,

During the last few weeks I have been going through the process of obtaining a lease car through work as I do enough business miles to qualify. The company would subsidise the lease.

To summarise (Option A):
Company Contribution
Employee Contribution
BIK Tax
0.11p per Business Mile
3 year lease
Includes: insurance, tax, maintenance and tyres.

Some of examples of the quotes I've received based on 4000 business miles and 8000 personal:

SEAT Leon ST FR 1.4 TSI - £170 MC + £50 BIK = £220 per month

Skoda Octavia vRS 2.0TDI 184 Estate - £209 + £70 BIK = £279 per month

Skoda Octavia vRS 2.0TDI 184 Estate with a few options:D!
£234 + £85 BIK = £319 per month

Just as I'm about to order, the company has released another lease car scheme to start on 1st August. This is open to all employees, not just those that do business miles. The company make no contribution for this scheme.

To summarise (Option :
Employee Contribution
BIK Tax
0.63p per Business Mile (Up to 3500 miles then 22p per mile)
3 year lease
Includes: insurance, tax, maintenance and tyres.

Unfortunately, I'm not able to obtain quotes for this until after 1st August. As with most new cars, there is a significant waiting list, I can either order on Option A now or wait for 1st August to obtain quotes on Option B where I may have wasted 'x' weeks.

All fleet management is done through Fleetcare.

Does anyone else have similar schemes through their employer? Which worked best for you?

Views appreciated.

jaybeetoo

You!!!8217;ll have to pay tax on part of the 63p per mile rate as it is over the over the HMRC approved rate.

JP1978

Matt_1985 wrote: »

Some of examples of the quotes I've received based on 4000 business miles and 8000 personal:.

Never heard of a company car lease subsidy scheme like this before, new one on me.

Is there a mileage limit on the vehicle? What happens if you go over that limit due to more business miles than expected, whom pays for the excess?

4000 p/a for business miles? That isnt a lot really is it? Your commute to work will come from the 8000 element. What happens if you move home, they move office?

8000 miles a year is 33 miles a weekday (based on 48 weeks working, 5 days a week) - If your office is more than 16.5 miles away, that element of personal is useless to you.

Maybe I am reading it wrong and the scheme is aimed at just assisting you getting a car, rather than a car that is needed for the work you do.

PS, the 1.4TSI Leon you have quoted - I drive one regular (DSG version) as a hire car and they are cracking motors. Normal motorway speeds 50mpg is achievable, a manual should be slightly better and taking it easy will see 55 to 60 easily. Also, very nippy too, all my own cars are diesel as I like the torque in them but this is one petrol engine I would go for instead.

Matt_1985

Never heard of a company car lease subsidy scheme like this before, new one on me.

NHS

Is there a mileage limit on the vehicle? What happens if you go over that limit due to more business miles than expected, whom pays for the excess?

Personal + Business Mileage over 3 years = 36000 miles.
I'd pay for any excess at 5p per mile.

4000 p/a for business miles? That isnt a lot really is it? Your commute to work will come from the 8000 element. What happens if you move home, they move office?

No it isn't, but anything over 3500 miles benefits my employer.
My main base is 1 mile from home. I also take the wife to work 4 miles away. However, we have another office 25 miles away which would be classed as business miles from main base.
If base or home changes, adjustments can be made with the fleet management company. Depending on the circumstances, the Trust and/or I would need to cough up.

On my current vehicle, between MOTs, I've done:

2017/18: 12498 miles
2016/17: 12678 miles

I will have access to another vehicle within the next 3 years also.