About DB's Company Car?

[whereiscaroline]

I know this is a small problem in the grand scheme of things but would be grateful for views from a neutral standpoint.

DB has a company car with a fuel card. Pays a hefty amount of tax for the privilege, and personal mileage is included in permitted use for both the car and fuel. I'm named on the insurance and provide my driving licence documents to his work every 3 months.

DB barely uses the car, he gets the train to work each day, which his employer pays for.

I have been looking at a job which is a 100 miles round trip from home. Pricing it up, trains will cost me £400 per month.

I suggested to DB that I use his company car for commuting each day, and he carries on getting the train as he has been doing for years. By doing this, we save £400 per month which would be a really helpful amount of money of course.

He has totally lost his rag at this suggestion. Apparently I'd be taking the mickey out of his company (it's a big PLC company, not a small family owned firm, if that makes a difference) by doing this. I do see his point, but my stance is that he is paying £4K a year in tax for private fuel usage, why shouldn't we make the most of that?!

AIBU?

Gosh, we are aren't we! I still maintain that if this car was a "perk" and that the intention was that him and one other person living at the same address (as is the case for an additional driver on my company car) should get unlimited free miles "on the company"then your should use it! Unfortunately my car's not a "perk" and I have to do a certain number of business miles to keep it, hence I pay for private miles, but some it my colleagues have one as a perk :)

Yes you are right, there is no reason for you not to use it as he is actually paying for it.

God I'm sucha slow typer on my phone! Makes sense what people are saying about caps on personal miles; seems like quite an awesome benefit is it really is unlimited!

I work for a large company and my work has no issue with my partner driving my company car every day. In fact several years ago it was suggested to me by my manager. Like your DB I have the car as a perk, I rarely use it for business. I love the convenience of having a company car, no repair worries, no expensive tyre repairs, new car every few years.

I'd be more concerned about your car, do you tell the insurance he keeps it in a train car park most days and do they know he uses it as part of his commute?

If it was me I would first check with his company it's ok for you to use it in this way. (I am a stickler for rules) If so, great - why would he have an issue with it? And YWNBU

If no, then I would proceed with the job based on you paying £400 a month in petrol and YWBU.

Also, look at points and rewards cards. When I drove to work I made sure I claimed points on a card when I filled up at certain stations. By the time I bothered to check and took advantage of time when points were doubled I had quite a bit. Could be a nice bonus every so often and won't feel so bad spending £400 a month.

It's not fair for him to get in trouble for you using it in this way if he's not allowed.

This sounds like a very inefficient way of having a company car.

What several people in my company are doing is to log personal mileage & pay it back to the company. This reduces their tax bill & most have worked out they are better off doing that.

My boss wouldn't be happy if an employees wife used a company car for such a long commute. Spouses use of the car are meant to be local evening/weekend mileage.

Of course you can use the car, so long as you're insured to use it. I'm insured on my dh's lease car and can use it anytime, no restrictions, just as he can. He's paying for it through his tax code, it's not coming out of the company's pocket.

Having a company car is not a perk these days.

Give the car back and you may well save £400 a month for your train journeys. I can't remember exactly how much tax I paid for my company car but it was at least £200 a month and I was a lower rate tax payer back then.

Spouses use of the car are meant to be local evening/weekend mileage.

Unless it is in the policy with max mileage by spouses, and both are declared, then who will know who is driving it and when?

That's incorrect Gracie. It is coming out of the employers pocket. The employer is paying to buy & maintain the car & pays for the petrol.

The employee pays income tax (car & fuel benefit) on the benefit of having free use of a car & fuel. This tax goes to HMRC.

He's paying for it through his tax code, it's not coming out of the company's pocket.

Of course the company are out of pocket. They buy the car, service and tax it, pay for any repairs, pay for insurance, etc.

I check all the fuel bills & monitor usage (I also monitor whether cheap or expensive garages are being used). A huge increase in fuel bills would cause us to ask questions.

He just needs to check with work.

Mind - a new junior colleague was about to refuse a car as he had been told it wasn't a perk - then he did the calculations. Brand new 19.5k car will cost him £62 a month in additional tax (he is a basic rate tax payer). Free insurance, repairs, tax, breakdown cover, service etc uncapped private mileage, no concerns on depreciation. He has to pay for private fuel usage but claims back business. He said his current insurance on his own car was £35 a month alone so he felt it was worth paying £28 extra each month to get a brand new vehicle.

I have a company car. The only person allowed to use it to drive to work is me or other colleagues

If any person named on the insurance that did not work for my company had an accident whilst driving to their place of work, they would not be covered.

That is not classed as personal use in our case

YANBU (though it's his car) If he's paying 4K in tax for personal use with fuel, I don't think 400 a month in savings from its use is outrageous. He's paying the tax because it's supposed to be a perk worth the equivalent of a salary that would be subject to 4K of tax, even if he's a higher rate tax payer, that's more than 4K of take home pay. Having it sit on your drive everyday isn't worth that much. 4,800 in savings a year is getting a bit closer.

Read the policy. I know someone who did very similar with no issues. DH on the other hand is supposed to have his available for his use in business hours, so although I am a named driver, there would be questions asked if I had an accident during business hours when DH should be working.

He has a company car with free petrol but uses your car to drive to the station? That makes no sense. I think you should both just use your own cars.

You can't use his company car for your own travel. His work and your work - totally separate and never the twain shall meet.

He should negotiate a car allowance instead of the car.

And you very well might find that you're not covered to use his company car for commuting

YADBU 100 miles a day is an absolute piss take. 10 maybe but 100 absolutely not. If he doesn't use the car he would be better off giving it up and pocketing the several grand a month he would save.

Erm....why can't you use your OWN car?!?!

It all depends on the company car policy. I would suggest your DB gets a copy and you both read through the fine print.

However if I were your DB I would enquirer about a car allowance.

Trinkets, I can use my own car. I just wanted to know whether IWBU to use DB's car which he is paying for indirectly but not using. It's all explained on the thread.