Using own car for work.

chriscuk18

Hi Everyone

First of all I must say what a fantastic website, such as good read.

Ok.. I'm currently using a company Pool Car to travel from my home address to my place of work. I've been asked by the managers to cost up how much it would actually cost to start using my own car to travel to work.

From my home address to leeds = 60miles Return (30 each way)

I have a 1.2 Petrol Small Car and don't know where to start looking to get an acurate figure.

I'm insured fully comp without business insurance so that also needs to be costed in...


Please help where do I start to get the figures from. I been told my calculations need to reflect, Cost of Petrol, Insurance, Tax, M.O.T, Servicing and depreciation of value.

LandyAndy

chriscuk18 wrote: »

Hi Everyone

First of all I must say what a fantastic website, such as good read.

Ok.. I'm currently using a company Pool Car to travel from my home address to my place of work. I've been asked by the managers to cost up how much it would actually cost to start using my own car to travel to work.

From my home address to leeds = 60miles Return (30 each way)

I have a 1.2 Petrol Small Car and don't know where to start looking to get an acurate figure.

I'm insured fully comp without business insurance so that also needs to be costed in...


Please help where do I start to get the figures from. I been told my calculations need to reflect, Cost of Petrol, Insurance, Tax, M.O.T, Servicing and depreciation of value.

If you are keeping the pool car at your address overnight you and the company are breaking the law by declaring it to be a pool car.

http://www.paypershop.com/news-cat/payrolltips235.html

LandyAndy

Are they planning to give you pay rise to cover the cost of your journey to work?

Conor_3

Class A Business use (travel from home to place of work) should be free on most policies.

Badger_Lady

Well, there's always the 40p per mile rule... though that does normally include business insurance (which you don't need). So maybe more like 35p per mile..?

Based on that, (35px60miles)x5 = £105 a week (assuming you work 5 days a week).

If they really want accuracy, I guess you need to look at recent costs and make some estimates. Perhaps:

- Tax £120
- MOT £50
- Servicing £80
- Petrol £4,680
- Tyres £60
- Exhaust £30
- Repairs £200
- Depreciation - how old is the car? How much was it when purchased and how long ago?

^ Modify this according to your personal experience, and add it all up to get an annual figure. The petrol cost is based on my own car's consumption - you'll know yours better.

It's an unusual case - I've not heard of a company that's prepared to subsidise your commute to normal place of work before .

AdrianHi

Badger_Lady wrote: »

It's an unusual case - I've not heard of a company that's prepared to subsidise your commute to normal place of work before .

Quite so, in fact HM Revenue and Customs (HMRC) will be after you for the tax on this as it is a benfit in kind if they find out.
40p per mile first 10,000 miles 25p thereafter is the HMRC limits for using a private car for business use. Business use is not travelling to and from your usual place of work though. If your company will not pay 40p per mile you can claim tax releif on the difference using HMRC form P87.

If your interested I have a spreadsheet which is pretty accurate for calculating monthly and per mile car costs over time which includes the items on Badger_Lady's list plus a few more. £400 a month is possibly quite close, but it depends greatly on what depreciation is costing you on the car. Need to know exactly what is is and the registration period (e.g. 05 or 55 plate etc.)

anewman

What general area do you travel from to Leeds, whereabouts in Leeds, and what sort of times do you travel? Just wondering if I can possibly give any helpful suggestions as someone who lives in Leeds.

I guess the least predictable cost of motoring is the repairs aspect, but I would put about £350 - £400 in case anything unforeseen happens like the clutch or headgasket.

daveyjp

If you don't need the car once you get to work you don't need business insurance. Why would a company pay for you commuting - I wish mine would!
I'd be looking at 50p a mile. For a 2 litre I get about 56p a mile when using the car for business, but as others have said there are tax implications.

raskazz

Conor wrote: »

Class A Business use (travel from home to place of work) should be free on most policies.

Iif it is travelling from home to a single place of work (as it appears from the original post) then only social, domestic and pleasure use plus commuting use is required, not business use.

leehal

If it is a permanent place of work then you will not be entitled to claim anything (assuming you travel there for over 2 years).

chriscuk18

LandyAndy wrote: »

If you are keeping the pool car at your address overnight you and the company are breaking the law by declaring it to be a pool car.

http://www.paypershop.com/news-cat/payrolltips235.html

No, the Car is returned daily.