Viewing 36 posts - 1 through 36 (of 36 total)
  • Is my company taking the pi55? Company car content
  • gravitysucks
    Free Member

    Hey guys.
    I managed to get meningitis a few weeks back which hit me out of the blue…
    Woke up feeling proper rubbish and a few hours later I was hospitalised via ambulance brain scan and lumber puncture….
    After a week they let me out to re-coup at home but im now into my 4th week off and feel no better than I did the day I came out of hospital.

    Luckily the first two week wasn’t an issue as I was hospitalised and the 2nd week my OH was off.
    Then the fun began!!
    I have a company car which as a funeral director I take home evenings and weekends and during the working day it is used by other members of staff as well. I pay a fair whack in tax for the benefit of having the use of the car personally.
    Given the choice I’d forego the car but it’s part and parcel of the job as work wants the security of it being taken home instead of it being left at work like a pool car would.
    Now with me being off sick the company has been wanting to have the car back to use during the day and they’ve been making a proper sing and dance about it. For most of the time I’m not bothered about them using it but it’s my only transport and I need it at least a couple of times a week to drop the kids of at nursery and to get to the docs.
    Theyre treating me like I’m taking the mickey and inconveniencing them because it’s there works car.

    Now from my point of view I see it as my car. They forced me to have it instead of having pool cars as it suited them. They now want there cake and to eat it. I pay the appropriate tax even it’s sat outside my unused until I need it.
    I shouldn’t be made to feel guilty when I want to use my car. So far I’ve been letting then collect it and drop it off but they are treating me like I’m inconveniencing them because of this and see it as though they’re doing me a favour when they let me have it for a few hours.
    All this could have been avoided if they just hired a car for a few weeks to see them through if they were struggling at any point, surely this is just part of running a business and you have to take a hit occasionally.

    I’d like to add I haven’t had a day off in 10+ years and this is meningitis so it’s not like I’m trying it on.

    thehustler
    Free Member

    |Do you ‘give’ the car back when you go on holiday?

    Answer yes they may have a point

    Answer no they can ‘do one and swivel’

    tomhoward
    Full Member

    You’re paying the tax? It’s your car…

    glenh
    Free Member

    You’re paying the tax? It’s your car…

    This. If they want full use of it, they have to pay for all of it.

    gravitysucks
    Free Member

    When on holiday it’s mine. If I’m flying away for instance and it’s just sat on my drive when I’m away then I sometimes let them use it but it’s my choice.

    allthepies
    Free Member

    Do you get company discount on funeral provision ?

    thehustler
    Free Member

    your car, then there use is by your approval, they cant just change the rules to suit as and when if they want a co car like that then it should be a pool car you dont pay tax for……..

    Cougar
    Full Member

    I pay the appropriate tax even it’s sat outside my unused until I need it.

    This is the crux of the matter, isn’t it. Tell them if they want it they can come and collect it, but you’ll expect your tax to be amended accordingly as you clearly don’t have a company car.

    ski
    Free Member

    Sounds like my company car situation too, when at work, my company car gets used as a pool car, but I get use of it at weekends and evenings, as I cycle to work, it p them off that they cannot pool it during the week, so I tend to leave it at the work carpark most of the week and take it home at the weekends.

    They get miffed though when I am away for a week or so with it.

    But the bonus for me is I have an ever growing collection of crap music CD’s, drinks bottles, fag packets and random bits of cloathing 😉

    mk1fan
    Free Member

    Is it a company car that you’re paying BIK tax on or is your car that you get an allowance for?

    If it’s the former then they have the right to use it whilst you’re recouperating – I’m assuming you don’t know how long you’re going to be off for – as it’s ‘their’ property.

    If it’s the latter then they have no right.

    gravitysucks
    Free Member

    Is there any middle ground options for car use?
    Am
    I right in thinking its either a personal company car or a works pool car?

    wrecker
    Free Member

    If it’s the former then they have the right to use it whilst you’re recouperating – I’m assuming you don’t know how long you’re going to be off for – as it’s ‘their’ property.

    I thought that a company could not remove a benefit during illness?
    They certainly can’t if you’re serving your notice.
    If they want it back, make it plain that it is, and shall remain a pool car in the future and you shall no longer pay tax for it. They can sort out alternative storage for it during weekends and evenings.
    What you save in tax should allow you to buy something perfectly fine.

    wallop
    Full Member

    They can’t have it both ways – if you are paying tax on it, it’s yours. The law would probably say though that they can take it off you if the compensate you. If they want it back, then they will need to reduce the number of days the car was available to you on your P11D, so at least your tax bill might drop a bit.

    iainc
    Full Member

    Is it a company car that you’re paying BIK tax on or is your car that you get an allowance for?

    If it’s the former then they have the right to use it whilst you’re recouperating
    really ? I don’t know tax regs but would doubt that. If you pay BIK as a taxable benefit then it’s your ‘benefit’ to use as and when you want surely – you may wish, for example, to have your partner using it as you are immobile.

    gravitysucks
    Free Member

    Mk1fan – I think you have it. I think it’s a BIK tax but it’s not optional. I’m forced to have it and take home etc.

    If they have a right to use it whilst I’m recuperating then where do I stand and who’s responsible for collecting dropping it off etc.
    If they have it for a few days then I don’t have use of it evenings / weekends.

    I’m not arsed about not having it when I’m laid up anyway but it does take the mick when I need it for dropping kids off etc. As said they don’t seem to appreciate that they’ve forced me into a position of having a car then expect me to be without a car when it suits them.

    allthepies
    Free Member

    Similar case:-

    http://m.accountingweb.co.uk/anyanswers/question/company-pool-car

    I guess your employer doesn’t cover the tax you have to pay for your personal use of the car ?

    mk1fan
    Free Member

    The ‘benefit’ of a company car is the car’s use out of work hours not ownership and / or exclusive use of the car at any time.

    The reason BIK rates are structured as they are is to discourage employees from choosing ‘environmentally unfriendly’ cars – although for a small minoroty this might be unavoidable.

    I would echo that perhaps the company could collect the vehicle as required rather than removing it completely.

    Does sound like a bit of creative tax work here though. I would have thought a car would have been an essential tool for a funeral directors rather than a benefit.

    druidh
    Free Member

    That. It’s not yours – it belongs to your employer. You need to re-think / re-negotiate.

    mk1fan
    Free Member

    you may wish, for example, to have your partner using it as you are immobile.

    People can wish for a lot of things but I’d be checking the company insurance policy covers partners/spouses/sig other before acting.

    wallop
    Full Member

    I would have thought a car would have been an essential tool for a funeral directors rather than a benefit.

    His use of the car during working hours is not the benefit – his private use is the “benefit”.

    wrecker
    Free Member

    It’s not yours – it belongs to your employer.

    It may belong to the employer but he is being taxed due to having personal use of it out of business hours. If he is not permitted this, then he should NOT be paying the tax.

    If the company complains, ask them if they’d like you to fill out a P11D.

    steveh
    Full Member

    Just because they want you to take the car home it does not have to be your company car. If you take it home for what is essentially safe keeping but do not use it for any personal use then no benefit exists.
    This is how it works with many company vans that drivers aren’t allowed to use for personal things.
    However as you are paying the tax then I’d expect it to be yours.

    OwenP
    Full Member

    Well, with all my previous company cars, i would pay the additional tax for having a ‘benefit in kind’ PLUS a ‘personal contribution’ of between 15 and 30% of the monthly lease cost of the car. It was this latter cost which meant it was ‘my’ company car, rather than a car owned by the company which i had use of.

    If it was just the tax i was paying i would expect to get personal use of the car, but as to when and how, well that might have been a bit more at their discretion?

    druidh
    Free Member

    That’s the situation with Mrs Druidh.
    However, the rules of use include (a) not allowing anyone else to drive it (b) not carrying any passenger not relating to her work and (c) not using it for any personal mileage other than her commute.

    OP – who pays for the fuel?

    aracer
    Free Member

    Well, with all my previous company cars, i would pay the additional tax for having a ‘benefit in kind’ PLUS a ‘personal contribution’ of between 15 and 30% of the monthly lease cost of the car. It was this latter cost which meant it was ‘my’ company car, rather than a car owned by the company which i had use of.

    If it was just the tax i was paying i would expect to get personal use of the car, but as to when and how, well that might have been a bit more at their discretion?

    If you’re paying the full tax, you’ve been conned – that’s on the basis that your company supplies you with a vehicle without you contributing. If you’re paying the full tax then you should get full personal use of the vehicle outside of working hours, as that’s the perceived benefit you’re being taxed on.

    wrecker
    Free Member

    If it was just the tax i was paying i would expect to get personal use of the car, but as to when and how, well that might have been a bit more at their discretion?

    This would be classed as a pool car, and not subject to BIK tax.
    What aracer said^^^^

    VanMan
    Free Member

    OwenP – I hope you are getting 15% to 30% knocked off the P11D value of the company cars otherwise you are being done from both ends

    scaled
    Free Member

    am i the only person thats wondering if your company car is a hearse?

    If so, how many bikes can you get in the back? 😉

    OwenP
    Full Member

    ha, yep good points!

    I was paying tax on the benefit i recieved (i think/hope), so my contribution did reduce the tax value.
    I think it was more just a point of if it came to a debate of this kind with my employers i would have felt quite solid as i was chipping in for the car as well. Don’t know enough about the tax side of things as to what % personal use is expected for it to be a benefit and taxed though.
    No company cars for me now, traded for a Brompton….

    tomhoward
    Full Member

    am i the only person thats wondering if your company car is a hearse?

    Nope….

    gravitysucks
    Free Member

    Mmmmm I’ll have to dig out my P11 to see what I’m paying with tax to clarify.

    To cover a few points…
    – its not a hearse, sorry to disappoint. It’s a black estate car. I do have tinted windows and a stretcher in the boot though
    – Others are allowed to drive it (friends / partner etc) as long as they are over 21.
    – I pay record and pay the company for personal mileage petrol.

    wallop
    Full Member

    Aracer +1

    I have NEVER had to contribute towards a company car in addition to my tax.

    donsimon
    Free Member

    What does your contract say?

    ciderinsport
    Free Member

    – its not a hearse, sorry to disappoint. It’s a black estate car. I do have tinted windows and a stretcher in the boot though

    Ok, to me that sounds like a car ready to carry the items of your trade!

    Anyway, my (well, a friends who is a tax inspector) opinion would be – you pay the tax, you have use of the car 24/7 whilst off sick.

    Good luck, and hope you recover soon

    mk1fan
    Free Member

    wallop – Member

    His use of the car during working hours is not the benefit – his private use is the “benefit”.

    Well done for not reading the whole of what I put and then repeating what I and others have already stated. 🙄

    The context of what you quoted was that, as a Funeral Director, I would have thought that the car would be an essential business tool rather than any benefit and therefore the cost/expense dealt with differently in the accounts. Forcing an employee to have [what sounds like a Private Ambulance] as a compnay car sounds like creative accounting on the company’s side to move their liabilities.

    Cougar
    Full Member

    So what you’re saying is, they’ve made a grave mistake?

    (sorry)

Viewing 36 posts - 1 through 36 (of 36 total)

The topic ‘Is my company taking the pi55? Company car content’ is closed to new replies.