New Dilema - Just Had SOA Approved and Now Been Offered a Company Car

VeryInTheRed · 30 August 2017 at 7:17PM

Hi all,

Literally just had my SOA approved by the OR with no IPA.

Out of the blue my work have said I can have a company car, including personal fuel. I have ordered one and have a spare car to use until mine is delivered.

I have been doing 500 miles per week in my car for work. The cost of this was accepted in my SOA and my car (worth £3-4k) was fully exempted. The exemption was a combination of family need (it's a seven seater and there are seven of us) and the need for a reliable car for the distance I travel.

As far as the SOA goes it looks like the tax I will pay on the BIK will be almost equal to any financial savings from stopping insurance and fuel etc. Therefore I think I should still be able to avoid an IPA, hopefully! If I do end up with one then fair is fair and I will happily pay it.

But the family car - a couple of questions:

Once it has been classed as exempt will the OR revisit that decision?

- I will still need to use it for work at least twice a week due to having to combine school runs with my work commute. On these days my wife will use the company car to get to work early doors.

Will the OR be peeved off if I get in touch a week after everything was finalised with these changes to deal with?

Thanks all!

:beer:

Dazed_and_confused · 31 August 2017 at 12:50PM

When you were made bankrupt? If it was after 5 April 2017 then what tax will you have to pay on the car in the next 7 months?

BorisThomson · 31 August 2017 at 1:00PM

They'll be more peeved if you fail to declare a change in circumstances. Give them a call so they can reassess accordingly.

k3lvc · 31 August 2017 at 1:19PM

VeryInTheRed wrote: »

(it's a seven seater and there are seven of us)

Have you managed to get a 7 seater company car and a short term 7 seater until yours arrive ?

luvchocolate · 31 August 2017 at 6:37PM

k3lvc wrote: »

Have you managed to get a 7 seater company car and a short term 7 seater until yours arrive ?

The O.P already has a 7 seater, please read his opening post.

I would just contact your O.R and pass on the information, best to be safe.

VeryInTheRed · 31 August 2017 at 7:21PM

As luvchocolate says, our exempted family car is a seven seater. I did not have the option of a seven seat company car just a small 5 seater.

I will give the OR a call next week when I know the tax cost etc.

Would they revisit the exemption of the family car now that I will be doing 200-300 miles per week in it for work instead of 500-600? I know no one can say for definite but any one come across this kind of thing before?

Thanks all,

VITR.

The_Real_Cheddar_Bob · 31 August 2017 at 8:46PM

With a bit of luck you will be able to keep the car. I would assume this will depend on:

How long is left before your discharge
The value of the car to the OR
The impact to your family by not having that car
Will the company car fill the gap adequately

Discharged · 4 September 2017 at 6:16PM

What you need to bear in mind is if you take a company car AND free fuel you'll get ht for benefit in kind tax. Even a cheap basic car and fuel allowance will cost you £250 upwards in extra tax, so you're income will be lower.

you can calculate your pay using this calculator:

http://comcar.co.uk/newcar/companycar/taxcalc/

VeryInTheRed · 9 September 2017 at 12:04PM

Hi Discharged,

Thanks for the info - I am aware of the BIK tax I will pay and considering I have been doing 500 miles per week in my family car the math works. I won't be any better or worse off, but won't have the worry or cost of faults and tires due to the miles I am doing : )

Dazed_and_confused · 9 September 2017 at 9:18PM

But how will you be paying any tax if you get the NT tax code??

VeryInTheRed · 11 September 2017 at 6:25PM

NT tax code just means that any tax I should be paying I have to pay to the OR. Therefore I will have to pay both the income tax and the BIK tax to them. What I keep is what I would expect to be my net pay as if I was paying said tax.

That is correct isn't it?

New Dilema - Just Had SOA Approved and Now Been Offered a Company Car

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