Company Car is it worth it ?

[Tueartsoverhead kick]

ive had a company van for the the past 5yrs and we've just had a restructure at work where my job title has changed but my salary remains the same but I've been told that new position means I can't now have the van but need to have a company car

Is this a good change or will it now actually cost me money so I will be worse off ?

 

[Uncle Wally One Ball]

A good change. Now that is something that is usually a contradiction in terms in the workplace

 

[1961_vintage]

Your HR people should be able to spell-out for you the £'s tax implications (if any) of being assigned the car (plus fuel also?) so I would talk to them. If you have a range to choose from, the Eco/Hybrid/Low Emission vehicles are much better in terms of how much you pay in tax. Make sure you let your tax office know.

 

[Tueartsoverhead kick]

Your HR people should be able to spell-out for you the £'s tax implications (if any) of being assigned the car (plus fuel also?) so I would talk to them. If you have a range to choose from, the Eco/Hybrid/Low Emission vehicles are much better in terms of how much you pay in tax. Make sure you let your tax office know.

I have a fuel card for the van but believe I don't get one with the car I pay out for the fuel and then claim it back through expenses against work mileage

 

[Mustard Dave]

The benefit of having a car paid for, including servicing, repairs, tyres, insurance etc, far outweighs any tax implications. Just make sure you opt out of private mileage (if offered), unless you do some serious personal mileage; you'll get spanked by the tax man otherwise.

 

[bluethrunthru]

Go for it mate. I have one. A new car every 3 years all found - except private petrol. Private mileage that depreciates the vehicle isn't docked from my pay there's the tax and servicing all found and it costs me @ £35pm. If I went into a dealers asking to lease what I've got for that figure I'd probably need a 99% deposit of padding down the back of me kecks as I'd get my arse kicked on the way out !

 

[yeseye]

Go for it mate. I have one. A new car every 3 years all found - except private petrol. Private mileage that depreciates the vehicle isn't docked from my pay there's the tax and servicing all found and it costs me @ £35pm. If I went into a dealers asking to lease what I've got for that figure I'd probably need a 99% deposit of padding down the back of me kecks as I'd get my arse kicked on the way out !

So in other words, the op is going to be £420 per year worse off?

 

[rowarta]

most important piece is the car selection and the emmissions, that's where the tax v cash comparison is important

 

[bluethrunthru]

So in other words, the op is going to be £420 per year worse off?

You'd have to weigh up the other options - does he get cash in lieu if he doesn't take the car? Does he need a car? If so how much would it cost him to buy/lease his own instead of the company car?

An important distinction needs to be made here too. Is it a company car or is it one his company leases for him in his name? The latter is a common company dodge because I believe it allows the company not to be liable for NI contribs on the BIK on the car. He is down a s the one leasing the car but its never his as it were.

 

[m7mcfc]

The way I see it brand new motor and all you have to do is stick fuel in, whats not to love?