Company car question

Belloni

Belloni

Belloni

Soldato
Joined
17 Feb 2009
Posts
3,001
Hi guys, i'm new to this whole company car thing, few questions.

Basically, spoke to HR and she said they able to source cars from a local leasing company and the driver is recharged.

I have a crappy corsa which i want rid of asap as it's a nightmare to drive, seems to rinse through petrol etc.

Now, the thing is, is it worth getting a company car if it will be mainly for use just to go to and from work park at there and leave it till i go home, and mainly personal use outside of it?
 
The decision to take advantage of a company car is very complex and you have not provided us enough information to give you any good advice.

Some questions:

1) Are you a 20%, 40% or 50% income tax payer?
2) Is there a cash alternative to the company car?

Answer those and we have somewhere to start :)
 
Same haha, spoke to two employees behind me, they both have a company car and told me to ask for one.

It will mainly be used for personal use not business, is this wise?!
 
Belloni said:
Now, the thing is, is it worth getting a company car if it will be mainly for use just to go to and from work park at there and leave it till i go home, and mainly personal use outside of it?
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This basically encompasses all ownership of a car unless you tracked it ;) I'm a bit unsure by the wording from your HR team. If they mean they source them for cheap from say arval and then you pay your company back this could either be an OK deal or not - it would depend on the price, contract etc... as to how good of a deal it is to you.

If this is a full company car then it's classified as a benefit in kind and you basically have your tax allowance changed to reflect the worth of the car. This means you pay for using it. Also - you're self employed but you spoke to HR? Eh? Going to need to explain this sorry, also if you could state your milage you expect to do, that would help as well.
 
Well, i work for a big company but they say we are self employed, i have to do my own tax etc on pay days. Well its about a 15 minute drive to and from work, then personal use, i would say it wouldn't be more then 5,000 a year?! If that, i drive to brighton on the odd weekend for partying, i live in hertfordshire.
 
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It's the newest polo 60 plate.

Maintenance and stuff is included my colleague said, don't know about cost, need to speak my manager when he gets back.
 
[TW]Fox;18723867 said:
If you are self employed the client you work for cannot give you a company car as you do not work for them :confused:

This is confusing.
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Just means he's more like to fall under IR35 legislation...

I imagine he's working through an umbrella company or ltd?



Anyhow... the cost is obviously an important factor & the ultimate question will be... is it worth it to you? Having a maintained/insured new car could be worth it dependant on price... or would you rather put that money in to owning something of your own?
 
Belloni said:
Well, i work for a big company but they say we are self employed, i have to do my own tax etc on pay days. Well its about a 15 minute drive to and from work, then personal use, i would say it wouldn't be more then 5,000 a year?! If that, i drive to brighton on the odd weekend for partying, i live in hertfordshire.
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Your comments are a little confusing, and that makes answering your questions difficult.

If you are "employed" by the company with a salary of 18k plus commission then this thread will be a standard one comparing the value of the car you get to the cash you could have taken instead to fund a private purchase.

However if you are "self employed" its a whole new ball game. Do you prepare your own accounts at the end of each year? If so you are personally liable for the lease, and I assume it will be tax deductible from your gross income. The comment that the company can "arrange" it suggests you simply get a discount on it?

Alternatively if you are "self employed" by way of running your own limited company, where your wages are paid to a shell company which then sorts out your tax/NI liability weekly/monthly then this opens a new can of worms again. Speak to an accountant.

If you work for a shady company and are confused about your tax liability, speak to an accountant !!
 
It does sound to me from what has come out that they are not offering you a company car, merely getting a car from a local leasing company and then recharging it to you. You said in your OP that the driver is recharged, this would point to what I said and not a company car.

It all sounds very confusing with the way you are employed, do you pay tax via payments on account?
 
Sounds to me like it's not a company car, they just happen to get a discount with a certain leasing firm and are offering you the opportunity to lease a car through them to get access to that discount.

So really what you're weighing up is basically a regular personal lease deal but one that might be a little cheaper (or may not be, worth checking) than you going direct to a lease company yourself.
 
My guess is the company he does work for are able to offer him lease cars through their own supplier, or one they have a deal with.

So they'd be leasing the car for him, and then billing him/his co as he's self employed for the privilege, or putting him in contact with the co directly and he gets invoiced by them.
 
Belloni said:
Ahhh yeah that's it.

I'll see how much they want a month for one.

Will how much mileage i do effect the monthly payment?
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Depends on the contract... generally yes... but a bog-standard lease should include either 1,000/month or 10,000/year. Company leases can be higher than that though - it all depends on what deal your company can get for you... better to ask whoever organises it.
 
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