Company Car Tax

darrencaunce

Hi,

Does anyone have any experience with company cars and claiming back tax paid? 

My company car has been in the Nissan garage for 15 weeks now due to a
series of ongoing issues. During this time I have been driving a hire car.

Since I have been paying company car tax for a vehicle I can’t drive i wondered if i could claim the tax back?

Thanks for any help
Darren 

molerat

Who is paying for the hire car ?

Grumpy_chap

darrencaunce said:

Hi,

Does anyone have any experience with company cars and claiming back tax paid? 

My company car has been in the Nissan garage for 15 weeks now due to a
series of ongoing issues. During this time I have been driving a hire car.

Since I have been paying company car tax for a vehicle I can’t drive i wondered if i could claim the tax back?

Thanks for any help
Darren 

Assuming the hire car has been provided by the company, then you continue to pay company car tax.  You still have the use of a car - just a different car.

Normally, that would just be on the same rate as the Nissan which is the normal company car.

If there is a difference in the hire car to the normal company car (from BIK perspective), and especially for an extended period such as 15 weeks), then the process may be for your employer to report a change of vehicle and then a change back.  If the delta in BIK is minor, that is probably not worth it from anyone's perspective.  You also need to be aware that the hire car could even be a higher BIK charge than the regular company car.

Grumpy_chap

This thread might be better moved to the Cutting Tax forum.

darrencaunce

molerat said:

Who is paying for the hire car ?

Nissan garage (but not the leasing company) also i’ve been given a corsa hire car rather than a like for like. 

darrencaunce

Grumpy_chap said:

darrencaunce said:

Hi,

Does anyone have any experience with company cars and claiming back tax paid? 

My company car has been in the Nissan garage for 15 weeks now due to a
series of ongoing issues. During this time I have been driving a hire car.

Since I have been paying company car tax for a vehicle I can’t drive i wondered if i could claim the tax back?

Thanks for any help
Darren 

Assuming the hire car has been provided by the company, then you continue to pay company car tax.  You still have the use of a car - just a different car.

Normally, that would just be on the same rate as the Nissan which is the normal company car.

If there is a difference in the hire car to the normal company car (from BIK perspective), and especially for an extended period such as 15 weeks), then the process may be for your employer to report a change of vehicle and then a change back.  If the delta in BIK is minor, that is probably not worth it from anyone's perspective.  You also need to be aware that the hire car could even be a higher BIK charge than the regular company car.

thank you, the leasing company haven’t provided the hire car, it’s been provided by Nissan  (so i believe)

I have been driving a corsa, pretty sure i’m supposed to be driving like for like or better (car i drive is a nissan qashqai)

Grumpy_chap

It is not important whether the lease company provided the car or whether it was provided by Nissan.  Not in the context of your BIK tax.  The only thing that matters here is that you were provided the vehicle by your employer.

I assume that you are employed in a regular job on PAYE and not self-employed sole-trader or Ltd Co. Director.  Is that correct?

Ideally, the car would be equivalent, but that cannot always be achieved for various practicalities.  At least you have been kept mobile, which might not have been the case (for 15 weeks) if you did not have the weight or the employer / lease company behind you.

On a strict technicality, the BIK should be adjusted to reflect the change of the vehicle.  I understand there is a waiver on this when the change of vehicle is temporary as yours is (except it has drawn out for a very long time for whatever reason).

Any changes would normally need to be processed by the employer who will report via the P11D.  Before making enquiries on this, it is probably worth understanding what the actual different in BIK liability would be.  If the Nissan is a BIK-efficient model but the Corsa is more run-of-the-mill, the difference in tax liability might be negligible and not worth bothering about.  It is even possible there are some Corsas that have higher BIK liability than some Qasqais.

Grey_Critic

darrencaunce said:

Hi,

Does anyone have any experience with company cars and claiming back tax paid? 

My company car has been in the Nissan garage for 15 weeks now due to a
series of ongoing issues. During this time I have been driving a hire car.

Since I have been paying company car tax for a vehicle I can’t drive i wondered if i could claim the tax back?

Thanks for any help
Darren 

I would be more concerned at the 15 weeks. Could do several complate rebuilds in that time.

Grumpy_chap

Grey_Critic said:

I would be more concerned at the 15 weeks. Could do several complate rebuilds in that time.

It is quite possible that they are awaiting a computer chip which is in short supply and providing for a warranty repair on a lease car that is being paid for may well be low priority versus a new car that can be sold and generate revenue, especially as the vehicle user has been provided by a Corsa to keep them mobile.

It is odd that Nissan provided a Corsa as the interim vehicle rather than any other Nissan.

AdrianC

Grumpy_chap said:

It is odd that Nissan provided a Corsa as the interim vehicle rather than any other Nissan.

Perhaps it's been hired in, since the dealership do not have sufficient courtesy cars available?
Perhaps it's a multi-marque franchise?

Remember, the dealership are not "Nissan" - they are just a company who have a franchise from Nissan to sell and repair their cars. Your local newsagent has a Sun logo on the sign, but isn't part of News UK.