company car grievance help please

incrediboy

Hi, just like to say what a great site, thanks to Martin I've just invested in an ISA and wondered why i didn't do it ages ago.
On to my point.., I work for a large water utility and just recently they have changed the way the car provision scheme works, under the new scheme I'm entitled to a focus diesel +12ppm or an allowance to run my own car, the allowance is £280/mnth + 12ppm. Previously there was no allowance but just the govt. rates of 40/25ppm which i was happy with as i run and old but very reliable nissan, the new allowance is of course taxable and NI able which equates to approx £190/mnth in my pocket, I know i can claim 22% of the difference in the mileage rate back.
When I raised a grievance on the basis that why should i have to go to the hassle of claiming the tax back when the company should pay the going rate 40/25ppm (I don't want the focus as it doesn't suit my personal needs) i was told that the £280 equates to the cost to the company of providing a focus, i since found out that that is the basic cost and doesn't include maintenance etc and the true cost to the company is £350/mnth, i've sent in another grievance on that basis and am waiting to hear back, my business mileage is approx 13k/yr.
What I could do with is some help persuading the company to pay me the going rate or the £350/month, the stupid thing is under the new allowance the only winner is the taxman, does anyone have any persuasive arguments that might help my case? , sorry for the long winded post but you need to know all the facts, many thanks in advance

squeaky

It might turn out to be easier to sit down with them, and gently point out the various reasons why their car isn't suitable and could they please consider one that is.

A practical demo ( I don't know what you do but...) such as showing them that you can't actually fir all your display items in the car, plus you find it a very useful selling point to have this this and this with you as well. (Adapt that to fit your job. Try to make it clear that you make them more money from your own car than you could from theirs. It's all about money - not your "convenience" IYSWIM?)

And then tell that that next time they want to do a magic deal with a car company that they consult you first!

incrediboy

Thanks for the replies guys, can you clarify this bit
"The £280 per month will be taxed at source but you can claim tax relief at the official rates", if your saying that I can claim most of the tax on the £280 apart from NI then I'll stop arguing with them right now.....
My union is helping out and we think we may have a legal challenge to the change of contract, main gripe is with the way the company is going about this but thats not a financial reason

incrediboy

thanks again jimmo, thats what I'd worked out but a slightly different way, oh well, looks like I'm stuck with it then unless i can get them on a change of contract legality, as you may have gathered i'm not overly fond of the new directors and MD and their way of doing things

Bean_Counter

incrediboy wrote: »

i was told that the £280 equates to the cost to the company of providing a focus, i since found out that that is the basic cost and doesn't include maintenance etc and the true cost to the company is £350/mnth

You might want to double check the source of the £350 per month figure. I know that as an employer, when I am calculating the cost to the company I am factoring in any VAT recoverable, the fact that the costs are tax deductible for corporation tax etc when I am working out the true cost to the company. Don't just take the headline rate that the company is paying the lease company (or whoever).

Similarly, when I am working out the cost to the company of the £280 payable to you as an employee, I am factoring in employers NI, benefits in kind charges etc etc.

You can't always take figures at face value.