Cost of company car?

[AvocadosBeforeMortgages]

I've been offered a job which includes a (heavily branded) company car, which is essential to do the role (field based). I have until tomorrow to decide if I want the job or not.

Someone mentioned to me when I was talking it over with them that the company car might cost me money (insurance? tax?), and I've become a bit baffled by what's online and why I might have to pay for what's essentially a tool used to do the job. Nothing has been stated by the prospective employer.

I don't currently drive (licence, no car) and have no real interest in using it for personal journeys - but I don't know if it would be officially allowed or not. Salary would be £36k, so just inching into the higher tax rate. No idea what the car model would be, but I'm picturing a sensible hatchback.

Please help me understand!

Will you have personal use of the car? i.e. will you take it home and use it at weekends. If so that is a company car and a taxable perk

The role would be field based with lots of work from home inbetween so there would be no option to leave it elsewhere. No plans to use it at weekends unless I had to go somewhere for work on a weekend.

I can't envisage my personal use extending beyond stopping at a supermarket on the way home (no additional mileage, so no way to show I'd even stopped off) to pick up some groceries. Everywhere I normally go for leisure is more conveniently accessed by public transport or walking.

The problem is that it is available for your private use whether you choose to use it or not.

If it was a pool car where you travelled to the office, picked up the car, did your field work then drove back to the office dropped off the car then went home it would be a pool car and not a company car.

I did a quick tax calc using this

the additional tax cost came out as £1,613 for tax year 2018/19 with private fuel benefit

without private fuel benefit the additional tax cost would be £630 for the same period.

A small point - £36k is not in the higher rate tax band - you may have been looking at figures that don't include the personal allowance. (I don't know why they ever present them that way, it has confused me many times!). A quick look up says basic rate tax is £11500 to £45000.

Hope accepting the job ends up looking right for you!

Yes you will have to pay tax. The tax amount is based on the CO2 emissions and car value

The tax calc I did was based on a Peugeot 208 1.2l petrol Pure Tech