company taking car allowance away

company taking car allowance away

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Discussion

norwichbrian

Original Poster:

19 posts

120 months

Sunday 20th April 2014
quotequote all
theboss said:
OP does anything prevent you from keeping your current car for family use, and taking the van for business as intended by the employer? Do you foresee yourself being considerably worse off financially, or is it more the case that you'd rather spend the time/miles in your own car and get reimbursed for it? (I know I would...)

Also are they giving you a mileage allowance at present?
I am paid the govt decreed 16p a mile, claiming rest via tax. Certainly worse off as currently get 305 quid a month car allowance which drops to nil, no private miles allowed and van tracked. Company also has strange ideas about damage, windscreen chip - stone chips - vandalism etal all down to keeper of van ie me.

norwichbrian

Original Poster:

19 posts

120 months

Sunday 20th April 2014
quotequote all
theboss said:
On the other hand... If they are paying for fuel... Why not let them bear any ordinary commuting costs, providing the OP has room to park both at home.
No room at home, mainly due to vans bearing words which translate as"I am full of computer equipment" being broken into and torched thereby causing damage to my home. Can park in local car park but van would be damaged or gone very very often.

norwichbrian

Original Poster:

19 posts

120 months

Sunday 20th April 2014
quotequote all
Terminator X said:
If you don't want to rock the boat Brian due to age etc perhaps just accept the van and keep the car? Time to realize though that loyalty means nowt these days ...

TX.
Agreed Terminator, amazing how often vans become u/s or damaged overnight. Could be lots of time off......

phil-sti

2,679 posts

179 months

Sunday 20th April 2014
quotequote all
Peugeot Partner crew cab, has five seats, all the taxable benefits of a van with the convenience of a car. It's what I picked.

norwichbrian

Original Poster:

19 posts

120 months

Sunday 20th April 2014
quotequote all
phil-sti said:
Peugeot Partner crew cab, has five seats, all the taxable benefits of a van with the convenience of a car. It's what I picked.
No go mate, manager says that no matter what I choose they can deem it unsuitable.

Countdown

39,854 posts

196 months

Sunday 20th April 2014
quotequote all
We've done this in the past - OP unfortunately it's always done to cut costs by eliminating non-essential perks.

We had a huge number of managers on Essential Car User Allowance but doing very little mileage. So we scrapped the ECU and offered 45ppm. Unions insisted we either give ECY or provide a company car - so we gave them the option of Ford Fiesta TDCi pool cars. In the end most of them accepted the 45ppm mileage allowance.

Tribal Chestnut

2,997 posts

182 months

Sunday 20th April 2014
quotequote all
Countdown said:
We've done this in the past - OP unfortunately it's always done to cut costs by eliminating non-essential perks.
It's not a 'perk'. It was part of his agreed package when he joined. Effectively it's a pay cut, dressed up.

CubanPete

3,630 posts

188 months

Sunday 20th April 2014
quotequote all
The company can lease a vivaro van for £150 a month so I can see the company's motivation in this - the travel allowance is made for their benefit and not yours. Ask your boss what the options available to you are. They can't make you liable for vehicle damage cost.

You may be able to argue this legally, based on the wording of your contract, but before you go down this route you need to be confident of your long term prospects.

Countdown

39,854 posts

196 months

Sunday 20th April 2014
quotequote all
Tribal Chestnut said:
Countdown said:
We've done this in the past - OP unfortunately it's always done to cut costs by eliminating non-essential perks.
It's not a 'perk'. It was part of his agreed package when he joined. Effectively it's a pay cut, dressed up.
I don't disagree with you. Cutting stuff to increase profits is what companies do. They'll cut the easy stuff first (as in this case) and then move onto the more difficult stuff later.

In our case it was a 15% cut in income. We could either cut jobs (which would have cost the company sales/profits), cut wages (Unions not happy), cut pensions (Unions not happy) or cut stuff which affected management grades (Unison not massively bothered).


Edited by Countdown on Sunday 20th April 17:13

conanius

743 posts

198 months

Sunday 20th April 2014
quotequote all
I'd try going for a middle ground. What about something like a Zafira.

Ok, it isn't going to give cutting edge driving dynamics, but the seats fold flat into the floor, and its 'car like' enough to be potentially ok for your wife. Try suggesting that?

I too have a wife who is disabled (well, she isn't officially disabled as to quote the DWP 'she may get better one day' but that is a whole different thread !! she needs a mobility scooter for walking) so I know how difficult car choices can be. Unfortunately, your employer didn't employ your wife, they employed you, and in the nicest way, your personal circumstances are non of their concern or care really within reason. I don't agree with what or how they are doing it, but their contract is with you as an employee, and if they say you have a company vehicle and give you one to do it, you can't really do much I don't think without going elsewhere or going via HR.

Frustrating thing for you is I think you are between a rock and a hard place. Are you in a financially solvent enough situation to simply resign and do something different? Even if it means a property downsize etc it might work out less stressful than hassle with the boss and HR dragged out till you retire.

norwichbrian

Original Poster:

19 posts

120 months

Sunday 20th April 2014
quotequote all
conanius said:
I'd try going for a middle ground. What about something like a Zafira.

Ok, it isn't going to give cutting edge driving dynamics, but the seats fold flat into the floor, and its 'car like' enough to be potentially ok for your wife. Try suggesting that?

I too have a wife who is disabled (well, she isn't officially disabled as to quote the DWP 'she may get better one day' but that is a whole different thread !! she needs a mobility scooter for walking) so I know how difficult car choices can be. Unfortunately, your employer didn't employ your wife, they employed you, and in the nicest way, your personal circumstances are non of their concern or care really within reason. I don't agree with what or how they are doing it, but their contract is with you as an employee, and if they say you have a company vehicle and give you one to do it, you can't really do much I don't think without going elsewhere or going via HR.

Frustrating thing for you is I think you are between a rock and a hard place. Are you in a financially solvent enough situation to simply resign and do something different? Even if it means a property downsize etc it might work out less stressful than hassle with the boss and HR dragged out till you retire.
Zafira would be fine by me but manager says that whatever vehicle i choose can be considered as unsuitable by the company so potentially wasting my money. contract also clearly states car, not vehicle.

Olf

11,974 posts

218 months

Sunday 20th April 2014
quotequote all
You need legal advice.

UpTheIron

3,996 posts

268 months

Sunday 20th April 2014
quotequote all
I realise it's a important issue to you Brian, but it might be that it is difficult for you to take a step back here:

- You took the role as your saw the extra cash as an incentive, rather than reimbursement for an expense you would bear.
- You've been there 18 years... perhaps makes it harder to accept but in 18 years it's inevitable that things will change.
- It sounds like the role has changed, although not clear how.
- Initially you didn't even the car, so it was purely a perk.
- The company is perhaps trying (needing?) to cut costs...
- ...or perhaps the role does genuinely need a van.
- I suspect your contract says they can remove the car allowance if it isn't needed for the role (and they are now saying it isn't, and that you need a van).
- Have you suggested that you will buy a van-sized car (e.g. an estate). Would this be fit for purpose?
- You keep saying your boss "can" deem anything unsuitable - so ask him to suggest something suitable.
- Take the van, leave it at work, pay £0 tax and accept things have changed.
- Find a new job on your terms if you wish.
- Play hard ball and risk having to find a new job on their terms.

I don't mean to sound so negative, but on the face of it they aren't being too unreasonable.

BE57 TOY

2,628 posts

147 months

Sunday 20th April 2014
quotequote all
Bit confused by the thinking process here.

Take the van like they want you to and use it for work. And use your personal car for private usage.

Obviously you won't be claiming the allowance, but you won't be getting the expense it was offsetting either.

I don't see what's unreasonable about that.

If it's just that the allowance was greater than the expense, then it's proof the allowance was too high in the first place.

If it means the resultant take home package is not as much as you'd like, look for a higher paid job?

norwichbrian

Original Poster:

19 posts

120 months

Sunday 20th April 2014
quotequote all
UpTheIron said:
I realise it's a important issue to you Brian, but it might be that it is difficult for you to take a step back here:

- You took the role as your saw the extra cash as an incentive, rather than reimbursement for an expense you would bear. Of course I did, but it was certainly a factor, extra money which formed part of the deal.
- You've been there 18 years... perhaps makes it harder to accept but in 18 years it's inevitable that things will change. granted, but I have not made the changes.
- It sounds like the role has changed, although not clear how. The company has taken on more customers, requiring larger parts.
- Initially you didn't even the car, so it was purely a perk. Not a perk, a part of the contract.
- The company is perhaps trying (needing?) to cut costs...
- ...or perhaps the role does genuinely need a van. Not in the last 18 years.
- I suspect your contract says they can remove the car allowance if it isn't needed for the role (and they are now saying it isn't, and that you need a van). No mention of being able to remove allowance or car option.
- Have you suggested that you will buy a van-sized car (e.g. an estate). Would this be fit for purpose? He could not make any recommendations as role may change again. See above
- You keep saying your boss "can" deem anything unsuitable - so ask him to suggest something suitable. See above
- Take the van, leave it at work, pay £0 tax and accept things have changed. cannot leave at work as nearest office is 120 miles away
- Find a new job on your terms if you wish. looking more likely
- Play hard ball and risk having to find a new job on their terms. may come to that.

I don't mean to sound so negative, but on the face of it they aren't being too unreasonable. I feel they are as it reduces my pay by over 3k with no benefit to me at all, who wants a white van which I cannot use for private use on the drive?

Hackney

6,837 posts

208 months

Sunday 20th April 2014
quotequote all
What about a Skoda Yeti
Or a VW Amarok (crew cab)

Would fit the brief if being sufficiently rugged / works van like but usable as a family car

BE57 TOY

2,628 posts

147 months

Sunday 20th April 2014
quotequote all
Hackney said:
What about a Skoda Yeti
Or a VW Amarok (crew cab)

Would fit the brief if being sufficiently rugged / works van like but usable as a family car
Sounds like his boss isn't going to allow anything that's not a company van. It's van or nothing. Take the van, it's more than most people get.

norwichbrian

Original Poster:

19 posts

120 months

Sunday 20th April 2014
quotequote all
Hackney said:
What about a Skoda Yeti
Or a VW Amarok (crew cab)

Would fit the brief if being sufficiently rugged / works van like but usable as a family car
I could suggest the starship enterprise but if the company can stop the allowance at any time i am stuck with something i cannot afford to buy. Even without this threat what could I get for 305 a month (before tax) on which i will be clocking up 36000 miles a year? No lease company would even entertain it.

2222

295 posts

151 months

Sunday 20th April 2014
quotequote all
CubanPete said:
The company can lease a vivaro van for £150 a month so I can see the company's motivation in this - the travel allowance is made for their benefit and not yours. Ask your boss what the options available to you are. They can't make you liable for vehicle damage cost.

You may be able to argue this legally, based on the wording of your contract, but before you go down this route you need to be confident of your long term prospects.
Bet it cost a lot more than £150, the OP is doing 36k miles a year

phil-sti

2,679 posts

179 months

Sunday 20th April 2014
quotequote all
norwichbrian said:
No go mate, manager says that no matter what I choose they can deem it unsuitable.
Seriously, he would have to have a good reason as it has a good capacity, it's a van and is cheaper across the board than a vivaro.

Ask the question.