Refusing a Work Benefit

ZOJZ

My work has recently changed my role and and my terms say I am "Eligible" for a company car. I have declined this as the only vehicle available through work comes with a £500 per month BIK charge and I don't need a vehicle that is this expensive as I am happy with using my current car as it only costs me about £2000 to run. The company has now turned around and said I have no choice in the matter and have to have a company car and pay the £500 BIK. The business has a grey fleet policy for personal vehicles stating a car has to be under 10 years old with 4 doors and be road worthy and my car meets all these requirements. I've appealed this once and the company has rejected it. They don't offer a monthly allowance to replace the benefit and I am not seek one I just don't want to be hit with a £6000 per year tax bill for a vehicle I don't want or need.

Has anyone else had a similar experience? what did you do?

Marcon

'Eligible' does not translate to 'required to have...'. Why have they refused to let you use your own car if it meets the specification in terms of age/having 4 doors?

JCS1

If £500 is the benefit in kind value, you would pay 20% tax on that if you are a basic rate tax payer, so £100 a month which would be £1,200 a year, not £6k. 

AskAsk

seems a bit odd.  places i worked where they offer a company car always offer a cash payment instead, which some people would choose if they already have their own car and would prefer to use that instead of the company one.

does seems strange that they say you must have the car as it doesn't really matter to them if you take the car or not surely?  in fact it would save them money if you don't want the benefit?

Xbigman

Can't you just park their car in the company car park and leave it there, then claim the tax back as you don't use it for personal use (or at all)?
 
Darren

TELLIT01

I wonder if the car is part way through a lease period and the previous user has left the company.  The company is stuck with the lease and wants value from it.

DanielsRNCEL

Take the car but declare business miles only with HMRC. You won't pay BIK on the vehicle then. 

Dazed_and_C0nfused

DanielsRNCEL said:

Take the car but declare business miles only with HMRC. You won't pay BIK on the vehicle then. 

That's not correct.

If the company vehicle is available then a benefit arises, just limiting use to business miles isn't sufficient.

It is notoriously difficult to avoid a benefit if an employer provides a company car.

AskAsk

Xbigman said:

Can't you just park their car in the company car park and leave it there, then claim the tax back as you don't use it for personal use (or at all)?
 
Darren

i think the problem with this is that the employer will send a P11D to HMRC as they have provided the OP with a benefit in kind, so the OP will be taxed.  he could only claim back any expenses incurred doing his job from HMRC, so business mileage allowance, so he would need to use the car for business purpose, which will exclude driving to work or any mileage expenses already re-imbursed by his employer.