Company car allowance - age clause
Comments
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Yes, it does. Did you read the bit where I said it becomes the employees responsibility to ensure the vehicle remains roadworthy? This is a contactural obligation to recieve the allowance.No it doesn't. You can have a MOT and drive around in a completely unroadworthy vehicle. A MOT is an indication of the condition of the vehicle at the time of the test only. You could drive down the road and both the headlight bulbs blow that night. You now have an unroadworthy vehicle even though it has a MOT does NOT meet the legislative requirements. You could do 20,000 miles a year and those tyres which passed the MOT with 2mm of tread could be bald within a couple of months - you then have an unroadworthy vehicle with a MOT which does NOT meet the legislative requirements.
As for your argument - Same rules apply to a brand new car. You could do 150000 miles in 3 years before it's due an MOT. It would need tyres in that time!
I've been on car allowance for 10 years. With 3 different companies. All that is required annually is a copy of my insurance stating business use and a copy of my MOT.You can have results or excuses, but not both.Challenge - be 14 Stone BY XMAS!
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I thought there was an HMRC limit of 10,000 miles at 45p, before it drops to a lower rate (25p?).Currently 45ppm, on average I'd probably claim 12000 miles a year.
With the car allowance of £350 pcm (I am a basic rate tax payer with a low risk of crossing the threshold into higher rate) I'd claim 25ppm.
My maths puts me at about £900 better off in terms of what I'd bring home if I take the car allowance and maintain my current level of mileage.
Don't forget that the car allowance is taxed.0 -
I thought there was an HMRC limit of 10,000 miles at 45p, before it drops to a lower rate (25p?).
Don't forget that the car allowance is taxed.
I'd taken tax on the car allowance into account.
As far as mileage caps go, I won't have hit it last year so wasn't aware that there was one but my routine has since changed. I'll need to take that into account as well though thanks.0 -
Yes, it does. Did you read the bit where I said it becomes the employees responsibility to ensure the vehicle remains roadworthy? This is a contactural obligation to recieve the allowance.
As for your argument - Same rules apply to a brand new car. You could do 150000 miles in 3 years before it's due an MOT. It would need tyres in that time!
I've been on car allowance for 10 years. With 3 different companies. All that is required annually is a copy of my insurance stating business use and a copy of my MOT.
An employer cannot get out of his H and S responsibilities by delegating them to an employee.0 -
Maybe ask to use the current car but agree that when you renew said car, you will stick to their age rule.
Its not as if you were offered the allowance and then bought an older car, you already had it.0 -
You are correct, and I never said that he could.An employer cannot get out of his H and S responsibilities by delegating them to an employee.
Laidback's point was that the employer was likely specifying a newer car on h&s grounds. To satisfy h&s requirements for company car allowance you only need to provide an MOT certificate. The age of the vehicle is irrelevant. Under every company car allowance scheme I've seen the employee is contractually obliged to maintain their vehicle and keep it roadworthy.You can have results or excuses, but not both.Challenge - be 14 Stone BY XMAS!
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You are correct, and I never said that he could.
Laidback's point was that the employer was likely specifying a newer car on h&s grounds. To satisfy h&s requirements for company car allowance you only need to provide an MOT certificate. The age of the vehicle is irrelevant. Under every company car allowance scheme I've seen the employee is contractually obliged to maintain their vehicle and keep it roadworthy.
But H&S requirements are not just about the legal minimum - some companies (thankfully including mine) strive for ever better safety standards for their employees - if that means only allowing business travel in cars less than 4 years old fitted with airbags, abs etc then that is a company's choice and employees should feel valued that the company values their safety.0 -
laidbackgjr wrote: »But H&S requirements are not just about the legal minimum - some companies (thankfully including mine) strive for ever better safety standards for their employees - if that means only allowing business travel in cars less than 4 years old fitted with airbags, abs etc then that is a company's choice and employees should feel valued that the company values their safety.
Or that the company actively supports the motoring industry and forces people to get rid of perfectly good cars.0 -
I've seen plenty of 3 year old company cars in far worse states, aesthetically and mechanically, than 10 year old privately owned cars on car allowance! Every company is going to have it's own criteria.
Be interesting to see what the outcome is for the OP, please let us knowYou can have results or excuses, but not both.Challenge - be 14 Stone BY XMAS!
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You are correct, and I never said that he could.
Laidback's point was that the employer was likely specifying a newer car on h&s grounds. To satisfy h&s requirements for company car allowance you only need to provide an MOT certificate. The age of the vehicle is irrelevant. Under every company car allowance scheme I've seen the employee is contractually obliged to maintain their vehicle and keep it roadworthy.
Strange as it seems, not everyone fulfils their contractual obligations. Suppose the employee has a valid MOT, but four bald tyres. When he ploughs into a bus stop, scattering nuns and kittens in all directions, is the employer in the clear?0
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