Relatives new job and company car
Discussion
A close relative has just been offered a new role in her company. It involves possibly many business miles, though amount of miles is an unknown as it's a completely new role.
However........
They won't discus salary until she decides what car option she wants??????
I have literally no idea what they are talking about as this is all that has been sent through... They want to offer a complete package apparently.
Car anyone please help figure this out?
"The options were given to me as follows:
Option 1: I use my own car. I get a monthly car allowance (amount not stipulated) and mileage.
Option 2: They buy a car outright - which was the case for my boss. They pay for the fuel I use for work.
Option 3: They lease me a car on a 2 year lease deal and give me a fuel card."
V8A*ndy said:
A close relative has just been offered a new role in her company. It involves possibly many business miles, though amount of miles is an unknown as it's a completely new role.
However........
They won't discus salary until she decides what car option she wants??????
I have literally no idea what they are talking about as this is all that has been sent through... They want to offer a complete package apparently.
Car anyone please help figure this out?
"The options were given to me as follows:
Option 1: I use my own car. I get a monthly car allowance (amount not stipulated) and mileage.
Option 2: They buy a car outright - which was the case for my boss. They pay for the fuel I use for work.
Option 3: They lease me a car on a 2 year lease deal and give me a fuel card."
If the fuel card includes private fuel, then she'll be taxed (fairly hard) on it.
There's no financial difference to her if the car is owned by the company or leased.
TooMany2cvs said:
V8A*ndy said:
A close relative has just been offered a new role in her company. It involves possibly many business miles, though amount of miles is an unknown as it's a completely new role.
However........
They won't discus salary until she decides what car option she wants??????
I have literally no idea what they are talking about as this is all that has been sent through... They want to offer a complete package apparently.
Car anyone please help figure this out?
"The options were given to me as follows:
Option 1: I use my own car. I get a monthly car allowance (amount not stipulated) and mileage.
Option 2: They buy a car outright - which was the case for my boss. They pay for the fuel I use for work.
Option 3: They lease me a car on a 2 year lease deal and give me a fuel card."
If the fuel card includes private fuel, then she'll be taxed (fairly hard) on it.
There's no financial difference to her if the car is owned by the company or leased.
I think they have an overall budget in mind for salary, car and expenses. I've just asked this question, rumour of £50k-£55k and although it's a rumour it comes from a good source.
Now thinking £43k salary (tax bracket) and the rest in car and travel but travel unknown.
I know nothing of company cars and BIK.
V8A*ndy said:
Unfortunately they won't give numbers???? Just pick an option and they will then discuss terms???? bizarre.
I can only imagine what a PITA they're going to be to work for.V8A*ndy said:
I know nothing of company cars and BIK.
Every car has a P11D value - the list price of car plus options. She pays income tax on a percentage of that, depending on the CO2/fuel. Or, at least, that's how it's been working recently. Who's to say it'll stay like that...Then if she gets the private fuel paid for, she pays income tax on an amount that's, again, CO2/fuel dependent.
joshcowin said:
I wouldn't work for them, if they are being odd now imagine further down the line when they are not trying to attract you to the company.
I'd tend to agree. Pretty much the entire company-car thing is one of these,You get a shortlist of cars to choose from. (maybe a shortlist of one!)
You get a per-month "play money" budget to choose a car. You can top this up with your own money if you like.
You get a "cash" payment in lieu of those, with rules on what age\type of car you may use for business.
Their version,
Choose a car and we'll deduct that from our budget, then offer you the remainder as salary.
Is just odd.
shtu said:
Their version,
Choose a car and we'll deduct that from our budget, then offer you the remainder as salary.
Is just odd.
If they actually came out and said "Look, this is our budget for employing you - how much do you want for car, how much in your pocket?" - then it'd be a damn sight more understandable.Choose a car and we'll deduct that from our budget, then offer you the remainder as salary.
Is just odd.
shtu said:
joshcowin said:
I wouldn't work for them, if they are being odd now imagine further down the line when they are not trying to attract you to the company.
I'd tend to agree. Pretty much the entire company-car thing is one of these,You get a shortlist of cars to choose from. (maybe a shortlist of one!)
You get a per-month "play money" budget to choose a car. You can top this up with your own money if you like.
You get a "cash" payment in lieu of those, with rules on what age\type of car you may use for business.
Their version,
Choose a car and we'll deduct that from our budget, then offer you the remainder as salary.
Is just odd.
It all hinges if she goes into the 40% bracket.
TooMany2cvs said:
shtu said:
Their version,
Choose a car and we'll deduct that from our budget, then offer you the remainder as salary.
Is just odd.
If they actually came out and said "Look, this is our budget for employing you - how much do you want for car, how much in your pocket?" - then it'd be a damn sight more understandable.Choose a car and we'll deduct that from our budget, then offer you the remainder as salary.
Is just odd.
Better cash in your pocket and your own choice what car to own, than be stuck.
Guys thanks for the links and info.
This issue has now been very nearly totally resolved and all the info provided above helped substantially.
Well then, it all turned out to be what we thought it was, however they said everything was a bit rushed and nobody was around to explain it all properly.
We put together some quotes for leases that were coming in a hell of a lot cheaper than what they had been given. She has offered to take a Hybrid, they pay the fuel and she gets a lower rate of tax.
So far so good. They are worried she might not be happy with a Hybrid but she doesn't care. All she wants is Nav, cruise, parking sensors and saving the company money (although the fuel won't be cheaper for them in the long run).
All in all they have actually been very good about it and the pay offer is excellent.
That leaves us with what hybrid, Hyundia, Kia, Prius?
No "Premuim" brand cars are allowed. The rest of the team drive Vauxhalls and Pugs.
Thanks again guys
VW also offer a hybrid Golf but lease costs are high. Toyota do a decent range of model sizes and shapes and not all look like hybrids with that "Prius" shape. I took a look at the Hyundi yesterday and it doesn't look too bad at all. P11D values are well below the Toyota equivalents. I did find that lease costs through Lex etc are much higher than going direct to the manufacturer. They will also be more willing to lend a car for a few days trial rather then getting a trip around the block as soon as you mention a leasing company.
Take case with the fuel deal. If there is low personal use then either buy and claim back company miles or pay for personal fuel. If you pay back then get this written in to the contract and keep records. If HMRC come sniffing then this will stop them claiming the extra tax for company supplied fuel.
Take case with the fuel deal. If there is low personal use then either buy and claim back company miles or pay for personal fuel. If you pay back then get this written in to the contract and keep records. If HMRC come sniffing then this will stop them claiming the extra tax for company supplied fuel.
Starfighter said:
VW also offer a hybrid Golf but lease costs are high. Toyota do a decent range of model sizes and shapes and not all look like hybrids with that "Prius" shape. I took a look at the Hyundi yesterday and it doesn't look too bad at all. P11D values are well below the Toyota equivalents. I did find that lease costs through Lex etc are much higher than going direct to the manufacturer. They will also be more willing to lend a car for a few days trial rather then getting a trip around the block as soon as you mention a leasing company.
Take case with the fuel deal. If there is low personal use then either buy and claim back company miles or pay for personal fuel. If you pay back then get this written in to the contract and keep records. If HMRC come sniffing then this will stop them claiming the extra tax for company supplied fuel.
Golf would be great, alas too expensive I feel.Take case with the fuel deal. If there is low personal use then either buy and claim back company miles or pay for personal fuel. If you pay back then get this written in to the contract and keep records. If HMRC come sniffing then this will stop them claiming the extra tax for company supplied fuel.
Hyundai seems a goer but there will be the odd 5-6hr motorway commute, so I hope it's comfy and not too tedious. Pity the plugin versions weren't out yet.
Good point about the fuel records. Her current Boss has this arrangement.
I'd avoid the Lexus IS200 even if they allowed it - very dated now, and best at converting leccy\petrol into noise rather than movement.
The Hyundai doesn't look bad at all, though the model names are unfortunate. The "Premium" gets the bigger touchscreen and satnav, which has Apple CarPlay/Android Auto.
http://www.hyundai.co.uk/new-cars/ioniq/hybrid
Not too bad even on a 20k\pa mileage lease https://www.nationwidevehiclecontracts.co.uk/Hyund...
The Hyundai doesn't look bad at all, though the model names are unfortunate. The "Premium" gets the bigger touchscreen and satnav, which has Apple CarPlay/Android Auto.
http://www.hyundai.co.uk/new-cars/ioniq/hybrid
Not too bad even on a 20k\pa mileage lease https://www.nationwidevehiclecontracts.co.uk/Hyund...
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