To ask DH to change jobs because of work car?

[itseasybeingcheesy]

I really don't know whether there's a better category for this but please do tell me if you're an Uber expert on tax and work benefits.

DH got a new job in January in the property sector he took it because there was talk of redundancies at his old job and because he really wanted to get into this branch of work and start a career.

The job involves a lot of driving. We weren't told much about the logistics of this other than you'll be covering this region and we provide the car, you get petrol and parking expenses back.

Fast forward four months, he loves job and is doing well. Makes bonuses every month. We are still struggling a bit money wise because I took a lower paid job to get out of a career that was making me ill. We get by but aren't managing to save. We have another baby on the way.

His work finally get around to telling him he needs to put the car in his name for tax as everyone else does and then call HMRC to tell them that. HMRC then immediately deduct about £5000 of his personal tax allowance and we are facing being a couple of hundred pounds worse off each month. Add to this that he only gets back 11p per mile on petrol and we are majorly in the hole on living expenses and struggling even more.

I'm super worried about finances and ask DH to start looking for another job to remedy this situation. He is gutted. Understandably. And is exploring transferring internally within his company but this kind of moves him to the side of the career he wanted.

AIBU? Any other solutions to this gaping hole in our finances other than changing jobs? Would appreciate the perspective of others who have to use a work car and the impact on their income.

OP, are you seeing his payslip? Or just how much arrives in your account?

I’m concerned that he’s asked to meet with his Manager tomorrow when neither of you are clear on what the costs of the car are, what your tax liability is or how much he is driving.

I’d advise postponing the meeting and going to see a financial advisor together first.

Giving up your own car is risky,
because his next employer might not provide a car
and he would also have to travel to job interviews before then.

Seriously @Argymargy? What kind of car do you drive that gets that mpg?

Ok, I googled it. We might need to change cars...

www.motoringresearch.com/car-news/most-economical-cars-2018/

I get 70mpg out of my Toyota Yaris Hybrid and get 14p per mile for the business mileage. It's only £3800 BIK too.

£5000 BIK isn't much. A £20000 car at 25% would be £5000.

@Fr3d an Audi A3 TDi - automatic!

Presumably your husband would have to pay to travel to work, whether that is in a car or public transport,so presumably he is not refunded for the home to office and return miles, which may account for some of the shortfall in cost v expenses

@Bridiehouse do you mind me asking do you fill out a self assessment return for your transcription work with Rev? How hard is that?

I think the pool car or the use of own car options should be considered and discussed. I left a job with a company car about 20 years ago and the increase in my take home pay with the new job really brought home how much I was paying in tax for the car.

@TotHappy Is it over £1000 you need to earn self employed before you fill out the self assessment return? I’ve not been transcribing for long and I’ve earned well under that amount so I have no experience with what it’s like yet!

Ooh I hope so! You just inspired me to maybe take it up but I was discouraged by the thought of doing a return if it's only £40 a week! Thank you!

Richie has sold me on a Yaris!

Unless you have emergency savings you can dip in to for repairs I personally dont think he should use your own car for work. That kind of mileage is hard on a car. Especially if it's an older model. If it was to break down, get in an accident, or fail it's MOT you'd need to fork out to get it back on the road and fund a temp car while it's being repaired. Any money you'd save will be eaten up. At least with the company car you're safe from that.

Company cars are a pain. You get stung for tax as the car is assessed as part of your salary, like private medicine. Are the company approachable - as a valued employer he might be able to negotiate some kind of deal where he is eased out of the financial catch a little more gently than suddenly finding your self hundreds out of pocket. As you don't own the car either this seems like a really bad deal - can you not hand the car back and get your own?

Why on earth did you decide to have another baby if you are struggling
financially?

Wow @DrVon,

Pretty sure her husband has some involvement in budgeting in regards to the family household and OP didn’t go and get herself pregnant all on her own.

Sometimes moving mountains is required from BOTH parents - making sacrifices is just something that needs to be done when raising a family and loving your job takes a back seat I’m afraid.

It seems you actually want to get ‘flamed’ on this - no need for anyone to be so hard on someone just looking for advice.

Jeez!

OP you are not making sense.

Leaving to one side your total misunderstanding of the personal allowance, the mileage thing makes no sense either.

You say it's 8 miles to work and 8 miles back. And that he's doing 100 miles a day for work, at least. And that the car is too small for a family car. 100 x 5 working days x 4 weeks is 2,000 miles a month, and £220 in petrol reimbursed. If he is only getting £70 reimbursed then something, somewhere is going very wrong.

you decided to change jobs for a lower paid one, got pregnant and now want your husband to move mountains to cover for that

This ^^

It's very unfair to expect him to move jobs because of decisions you have made. Why does he not get the same privilege?

OP, if your DH tax code has reduced by £5000 that doesn’t mean he loses the full £5000.

He has to pay tax on that amount.

As a basic rate tax payer that will be £1000 per year, so less than £100 per month.

Having a company car is a taxable benefit. Surely you must have understood this? If his tax code has been reduced by £5k that means he has £5k more to be taxed on. I don’t see how this would cost you £400 per month.

I agree. If his code is reduced by 5k and he is not a high rate tax payer then he pays about 20% of 5k in tax??

My thoughts exactly.

Just referring to picking up work. Starting point is internet. Google any service you think you could realistically provide from home, bearing in mind you will need to be able to work to deadlines and obviously have children. Find companies that provide this service and email them all to see if they need freelancers. If it gives you any encouragement, I set up my own business in Germany in this way providing translation and proofreading services. I don’t earn much but I get the impression that even a couple of hundred pounds each month would be welcome.

Absolutely agree with Dr Von Patak - I think you have brought some of this on yourself, as if you were that ill, why did you think it was a good idea to take a lower paid job and get pregnant?. Your husband has been left to keep the family in the manner that you seem to want - yet you are not too bothered about his mental welfare or his career dreams!