Changing from work van to work car.
Discussion
So I am an alarm engineer for a national company. I have always had a work van that I don't use privately so it's never cost me anything. Now today I have been given a new astra estate works car as most of the vans are going back. Am I going to have to pay company car tax for this astra, I still don't need to use it privately as I have two other cars. The astra is sign written and has a ladder on the roof bars and tools in the boot, if that makes any difference.
k22wes said:
hmrc are telling me that a work car of any kind is taxable regardless if you use it private or not.
Well, you spoke to an idiot then. So long as it stays at work, you don't pay tax on it. It's a pool car. But to and from work is classed as private use, so no taking it home.Phunk said:
As long as you don't use it privately, you won't get taxed
If only it was as simple as that.The Benefit in Kind rules on "private use" of cars are much more stringent than for vans. Unlike with vans, the home to work commute counts as a private journey - so to be able to pass the "no private use" test you had have to leave the car at the place of work every day and make your way to and from work by some other method.
Eric Mc said:
If only it was as simple as that.
The Benefit in Kind rules on "private use" of cars are much more stringent than for vans. Unlike with vans, the home to work commute counts as a private journey - so to be able to pass the "no private use" test you had have to leave the car at the place of work every day and make your way to and from work by some other method.
There are some complex exemptions for people that go from home to clients, or work from home. From my experience, the quickest way around this is to get the employer's fleet insurers to issue a specified insurance cert showing the reg number and excluding pleasure use. So a business use only certificate. HMRC then seem to begrudgingly accept it. The Benefit in Kind rules on "private use" of cars are much more stringent than for vans. Unlike with vans, the home to work commute counts as a private journey - so to be able to pass the "no private use" test you had have to leave the car at the place of work every day and make your way to and from work by some other method.
TwigtheWonderkid said:
Eric Mc said:
If only it was as simple as that.
The Benefit in Kind rules on "private use" of cars are much more stringent than for vans. Unlike with vans, the home to work commute counts as a private journey - so to be able to pass the "no private use" test you had have to leave the car at the place of work every day and make your way to and from work by some other method.
There are some complex exemptions for people that go from home to clients, or work from home. From my experience, the quickest way around this is to get the employer's fleet insurers to issue a specified insurance cert showing the reg number and excluding pleasure use. So a business use only certificate. HMRC then seem to begrudgingly accept it. The Benefit in Kind rules on "private use" of cars are much more stringent than for vans. Unlike with vans, the home to work commute counts as a private journey - so to be able to pass the "no private use" test you had have to leave the car at the place of work every day and make your way to and from work by some other method.
The truth is if you have a company car & take it home it's 99.9% likely you'll cop for a tax bill.
Assuming you are a basic rate taxpayer, £50 per month equals £600 a year tax. At 20%, that implies the value of the Benefit in Kind is £3,000. Keep an eye on your PAYE Tax code that it is amended top reflect a Benefit in Kind of £3,000.
What type of car are they providing you with and do you know its specific list price?
What type of car are they providing you with and do you know its specific list price?
k22wes said:
Well today I contacted the fleet manager. She gave me the info I needed to pass onto hmrc. Rang them tonight and it's going to cost me £50 a month.
I have got a fuel card but any private miles I pay back to my employers at 14p a mile. All mileage is logged every day.
A car for £50 a month ain't so shabby is it. You can check the numbers via HMRC car tax on-line calculator.I have got a fuel card but any private miles I pay back to my employers at 14p a mile. All mileage is logged every day.
Good luck from a fellow employee of a national alarm/cctv/access control company
k22wes said:
Yes it's an astra estate ecoflex, list price/p11d £19950, 94co2. I'm quite happy with it, plus it means I can sell my old mondeo estate run about and use the astra instead.
give it time, im also a alarm engineer and i ran only my work car ( a golf tdi) for a year before i got sick of it, tool rattling around, advertising the company all the time, being tracked etc, gave up and bought another carI was told by HMRC, that if you dont use the car for private mileage you pay no tax at all:
2. What's exempt
You may not have to report or pay anything to HM Revenue and Customs (HMRC). To be exempt, your employees must use the car or fuel in one of the following ways.
Cars available for business journeys only
Business journeys are either:
journeys that are part of your employee’s duties, eg a service engineer travelling to an appointment
journeys an employee has to make to get to a temporary workplace
and as service engineers, we dont commute to a office so its not counted as private millage getting to site.
From what I've been told, there is no way to not pay the tax on any work car. The only way is if the car is left at work office every night and you commute there every day to collect the car and go to work from there. That's no good for me as the office is 100 miles away and I need it for when I'm on call. I do 1000 miles a week at work.
I've got an m3 and a 205 so won't be relying on the astra for all my private mileage.
I've got an m3 and a 205 so won't be relying on the astra for all my private mileage.
k22wes said:
From what I've been told, there is no way to not pay the tax on any work car. The only way is if the car is left at work office every night and you commute there every day to collect the car and go to work from there. That's no good for me as the office is 100 miles away and I need it for when I'm on call. I do 1000 miles a week at work.
I've got an m3 and a 205 so won't be relying on the astra for all my private mileage.
Dead right. Especially if your employer has already decided (which they obviously have)I've got an m3 and a 205 so won't be relying on the astra for all my private mileage.
Gassing Station | Finance | Top of Page | What's New | My Stuff



