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Original poster

Company car question

13 replies

companycar · 30/01/2012 22:14

I've always been public sector and have a 2nd interview tomorrow for a job in the private sector, which offers a company car. There is no car allowance on offer, car only.

I'm a complete and utter novice when it comes to such things. Should I ask about the car and what it might be? Is there usually a choice? Should I be bargaining over it like I would salary? I am DYING to know what it might be.

What else do I need to know? I have heard mutterings about it being a tax nightmare but I know not why.

I am utterly clueless. Please help.

OP posts:
GladysLeap · 30/01/2012 22:34

Don't know anything about the actual car, but from a tax point of view you will get a reduction in your personal allowance for the taxable value of the car. The exact amount of your car benefit depends on the list price and the CO2 emissions.

People end up owing tax when there is a delay between them first acquiring a company car and the company telling the tax office. You also need to be aware that your tax code will change, and if you don't get a revised code through, query it.

Original poster
companycar · 30/01/2012 22:37

Great, that is helpful. I haven't worked for a year so I am struggling to get my head aroound things as it is, never mind new things!

OP posts:
PPPop · 30/01/2012 22:40

Do you need a car to do the work? If you do, is there a mileage rate they pay for use of your private car? May be worth finding out and doing some sums.

Original poster
companycar · 30/01/2012 22:44

I've asked if I have to have the car or can have a car allowance and they said no. I am a bit disappointed as I have a perfectly good car in my drive and would be loathe to get rid of it in case the job doesn't work out, so I will end up running both anyway.

OP posts:
Original poster
companycar · 30/01/2012 22:45

The job definitely requires a car, without a doubt. There will be travel required across three counties at least.

OP posts:
PPPop · 30/01/2012 22:49

There's a difference between a car allowance which is £x per annum paid in cash in lieu of car and a mileage rate. My work pays xp per mile if you use your own car and a lower rateif you use a company car or have the allowance. I think. Its a while since I looked at it all but best to clarify with them. I probably wouldn't do it at the interview though, its one of those things I would normally address at the offer stage if it was me.

CMOTDibbler · 31/01/2012 14:53

There are quite a few companies that have company car only - my DH works for one, and it is a pain. The car choice depends on your grade in that company - for essential users, the benchmark is a good spec Ford Focus though they can choose from a range of cars and can top up.

Original poster
companycar · 31/01/2012 20:59

I am starting to think it might be bit of a pain, and wasteful really as I have my own car. Presumably they have to be kept absolutely spotless? That might be tricky!

OP posts:
KaraStarbuckThrace · 31/01/2012 21:06

Does it come with a fuel card? Do you do a lot of miles? DH has had a full expensed company car for years and it has been well worth the extra tax as he does a lot of mileage, plus we live a long way off from our families.

CMOTDibbler · 31/01/2012 21:12

Spotless ? No, not at all. As long as they are respectable when they go back after 3 years

Original poster
companycar · 31/01/2012 21:57

I can see I am very clueless. Do you mean that the fuel card covers private use as well? I can see that my public sector brain might find that concept difficult!

OP posts:
Grevling · 01/02/2012 16:17

Depends on company policy. Some provide fuel for private use some as you to claim the for the fuel used on business miles as a pence per mile.

e.g. if they give you private fuel you just fill up they pay the bills regardless of if its private mileage or not. You are taxed on this but 20%/40% tax is less than 100% of the cost of the fuel.

If you claim the fuel mileage you'll claim what ever the rate is for the engine size of the car (based on HMRC figures). So if you do 100 business miles at £0.09 you get £9. If it costs you £8 in fuel you'll be a £1 up and there is no tax to pay on this. So if you drive well you'll be better off (and the rates aren't stingy so are easy to hit).

gallifrey · 03/02/2012 21:57

My hubby used to have a fully expensed company car, he had a fuel card and got his private fuel paid for. He had to pay an extra £1000 a year tax because of this 'perk' and we worked out that he didn't use that much fuel privately anyway. We used to drive about just for the hell of it and go on really long journeys all the time!
He still has a company car now but just claims his business mileage back.

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