Work benefits- free car wwyd?

[Boxshibe]

DH started a new job recently and one of the benefits is a car/motorbike. He works in car manufacturing in IT. One of his work benefits is he can lease a car and insurance from work for free.
Now neither of us drive - he can't and I don't have a current licence. As we lived in London for a long time this wasn't a problem. Now we've moved to a village close to my parents and dd1 will be 17 soon it makes sense to sort this out.
So the plan is I get a new license and we get lessons for dh and dd1.
He gets points towards this so we could get anything from a basic hatchback to a suv or electric suv and anything in between. Or a motorbike.
It feels stupid not to use it and we'll never be able to afford a brand new luxury car so we should just get licences?
Wwyd?

Thanks . So insurance and servicing is included. It would be a BMW.

It changes your tax code ... mine went to something like 9,700 for the tax free amount instead of the standard 12,000.

Plus when you send it back, if it has so much as a hair on it, you pay tons in charges.

Check if the insurance would include your dc. Many work policies don’t, and also have exclusions for new drivers ime.

Here OP you can work out the cost in tax here:

cccfcalculator.hmrc.gov.uk/CCF0.aspx

the more expensive the car the higher the extra tax due.

Oh and if he drives for work and gets petrol mileage back, mine reduced from the HMRC standard of 45p per mile to 11p. Another thing to consider when factoring cost.

You do need to run the numbers very carefully and stop thinking of it as free.

It's quite poor if they are not offering a car allowance instead - it effectively is part of his salary (hence him being taxed on it) so there should be an option more suitable for those who either can't learn to drive, or who already have a functional car that is not due for replacement.

Insurance and servicing may be included

Servicing would be very likely (as a lease car the full service history effects the disposal value at the end of the lease life cycle)

All the details need to be checked into

It certainly won’t be “free”. You say he can get a car up to £100k, a diesel X5 for example will cost more than £700/month in additional tax. As PPs have stated, make sure you do the sums. I’d also question what the scheme rules are on experience of drivers, new drivers might not be welcome.

Depending on the value of the car it could tip him into 40% tax so the cost will increase. Also check on the effect on child benefit as he may lose entitlement to some of that if his adjusted salary goes above £50k.

Don't forget any future pay rises and future increases in car tax liability.

He could lose a lot of the benefit if the car takes away a big chunk of his personal allowance.

Are you sure your DD will be able to drive it? DH's company car scheme specifically prohibits young drivers...