Discussion
Hi
Wondered if anyone can help.
I've approached my employer on the likelihood of having a company car and he's agreed in principle but wants me to give him figures and options, as the company has never given cars before.
Its been left completely open for me on costs etc and wondered where to start, and give him pros and cons on leasing, buying outright or maybe a salary sacrifice scheme ?
Looking at lease cars, value would be probably £250+vat/month, and then I need to give outright purchase and also options for the company to buy on HP, but he wants a 0% deal...
Another option would be just to get a personal loan from my employer which would be 0% to me, so I could just go buy a secondhand car (would be about £9k, and no stipulation on type of car I'm allowed.)
If they leased or brought, I'd pay BIK and only be able to claim £0.15/mile for business travel, whereas if I took a loan from them paid directly from my wage to buy a car in my name, I could claim 45p/mile for business miles (estimate only about 500 miles a month business)
This has all come about as they want me to visit a few customers per month, and my own car is a £1500 piece of s**t, I could use this but would rather have a newer reliable car fit for purpose.
I don't understand all the tax implications for them or me, apart from my BIK tax...
Any ideas or where to even start, or websites to show employer and employee costs on lease/buy etc....
Thanks
Tim
Wondered if anyone can help.
I've approached my employer on the likelihood of having a company car and he's agreed in principle but wants me to give him figures and options, as the company has never given cars before.
Its been left completely open for me on costs etc and wondered where to start, and give him pros and cons on leasing, buying outright or maybe a salary sacrifice scheme ?
Looking at lease cars, value would be probably £250+vat/month, and then I need to give outright purchase and also options for the company to buy on HP, but he wants a 0% deal...
Another option would be just to get a personal loan from my employer which would be 0% to me, so I could just go buy a secondhand car (would be about £9k, and no stipulation on type of car I'm allowed.)
If they leased or brought, I'd pay BIK and only be able to claim £0.15/mile for business travel, whereas if I took a loan from them paid directly from my wage to buy a car in my name, I could claim 45p/mile for business miles (estimate only about 500 miles a month business)
This has all come about as they want me to visit a few customers per month, and my own car is a £1500 piece of s**t, I could use this but would rather have a newer reliable car fit for purpose.
I don't understand all the tax implications for them or me, apart from my BIK tax...
Any ideas or where to even start, or websites to show employer and employee costs on lease/buy etc....
Thanks
Tim
Look up www.lexautolease - they have help pages for new companies considering lease cars.
Another option is a car allowance of some kind - expecting to be provided with a full on company car for visiting a "few customers" a month sounds like overkill to me.
If that sounds harsh - there are plenty of people in jobs that require them to drive during work time everyday for their job - and not a company car in sight. Ive never for example seen a district or community nurse getting a company car for example - or a social worker etc.
Seem to recall a tread on here some time back of a care worker who had to travel from job to job (visiting clients as a home help type person) in her own car - the PHer who started the tread was a friend/relation of hers and was looking for a new car for her. Budget was tiny - around a grand if I recall correctly - think she bought a K11 Micra in the end. She has to manage just fine with a budget car
Car allowance sounds better for you - particularly if you have nice flexibility on what car you can have.
That or agree a satisfactory expenses package on a per mile basis - perhaps adjusting that figure somewhat if you need/want to buy a newer car for the job.
If you think im being unfair/harsh etc - tell us what mileage you will do on business - and if its more then I think - I offer my sincere apologies.
Do think though - that company car seems overkill for your situation when a car allowance/or expenses package might work out okay.
If that sounds harsh - there are plenty of people in jobs that require them to drive during work time everyday for their job - and not a company car in sight. Ive never for example seen a district or community nurse getting a company car for example - or a social worker etc.
Seem to recall a tread on here some time back of a care worker who had to travel from job to job (visiting clients as a home help type person) in her own car - the PHer who started the tread was a friend/relation of hers and was looking for a new car for her. Budget was tiny - around a grand if I recall correctly - think she bought a K11 Micra in the end. She has to manage just fine with a budget car
Car allowance sounds better for you - particularly if you have nice flexibility on what car you can have.
That or agree a satisfactory expenses package on a per mile basis - perhaps adjusting that figure somewhat if you need/want to buy a newer car for the job.
If you think im being unfair/harsh etc - tell us what mileage you will do on business - and if its more then I think - I offer my sincere apologies.
Do think though - that company car seems overkill for your situation when a car allowance/or expenses package might work out okay.
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