Company car with free fuel allowance - wife using car 100%?
Company car with free fuel allowance - wife using car 100%?
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Discussion

Dombo

Original Poster:

1 posts

147 months

Saturday 14th June 2014
quotequote all
My company has just introduced a company car scheme where they just had an equivalent cash allowance system in the past. The policy with the car allows for one nominated driver and all private fuel if you opt for that.
My wife works one hour from our home, while I am only around 10 mins away. The scheme looks interesting, if I could take the car and my wife use it as her car. Obviously whatever she drives is using a lot of fuel and getting hammered a lot more than whatever I drive.

So the question to the discussion board - is it acceptable that I do that with the company car, and claim a lot more private fuel than my commute to work would require? One one hand, the car is a benefit for my private use, as is the fuel. On the other hand, I don't want to be sacked for abusing the scheme. It's a bit of a tricky one to ask the HR team!

What do people think?

JQ

6,788 posts

208 months

Saturday 14th June 2014
quotequote all
Dombo said:
My company has just introduced a company car scheme where they just had an equivalent cash allowance system in the past. The policy with the car allows for one nominated driver and all private fuel if you opt for that.
My wife works one hour from our home, while I am only around 10 mins away. The scheme looks interesting, if I could take the car and my wife use it as her car. Obviously whatever she drives is using a lot of fuel and getting hammered a lot more than whatever I drive.

So the question to the discussion board - is it acceptable that I do that with the company car, and claim a lot more private fuel than my commute to work would require? One one hand, the car is a benefit for my private use, as is the fuel. On the other hand, I don't want to be sacked for abusing the scheme. It's a bit of a tricky one to ask the HR team!

What do people think?
I'd ask the fleet manager, different firms will have different policies, so I don't see how anyone on here can answer your question.

Presumably, you've already worked out the cost of the free fuel against the tax you'll be paying on the fuel card.

Frankthered

1,687 posts

209 months

Saturday 14th June 2014
quotequote all
You should move to 10 minutes from where she works and an hours drive for you.

Simples! silly

Regiment

2,799 posts

188 months

Saturday 14th June 2014
quotequote all
Sounds incredibly cheeky and a bit of an abuse of the system, surely there are parts of the contract that wouldn't allow you to do that though?

Riley Blue

23,205 posts

255 months

Saturday 14th June 2014
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Does your fleet cover insure your wife for commuting to her place of work in your company car?

T5R+

1,226 posts

238 months

Saturday 14th June 2014
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They will probably frown upon it as you mention "company" and "one nominated driver" - assume she works for a different company and will not be the nominated driver.

Having said that - when I had private fuel included......had a diesel car but could fuel my petrol motorcycle with the Fleet Managers approval.......using the company credit card. Just madness if you ask me but it worked out well.

Fantuzzi

3,297 posts

175 months

Saturday 14th June 2014
quotequote all
Well officially, it will be no.

But unofficially, I don't see why not. They might get suspicious if they know how close you are, and they think the mileage is suspicious, but I assume you get to use the car at weekends so that should be an easy fix unless they want to see the car in the car park every morning.


ORD

18,195 posts

156 months

Saturday 14th June 2014
quotequote all
Probably a fraud. Otherwise, sounds great!

It amazes me how many people ask whether or not it's OK to defraud their employer.

northwest monkey

6,370 posts

218 months

Saturday 14th June 2014
quotequote all
I think this is one of those questions where if you ask the question you probably have an idea of what the answer would be, whereas if you don't ask the question....

smile

Mastodon2

14,323 posts

194 months

Saturday 14th June 2014
quotequote all
This does sound dodgy, especially as they'll expect to be providing a car and fuel for you 10 minutes away, and when they look at the bills they'll have a car gaining 25,000 mile PA and a fuel bill to boot. I'd get a very, very clear answer from the fleet manager before trying a wangle like this.

Snowboy

8,028 posts

180 months

Saturday 14th June 2014
quotequote all
I used to work for a car manufacturer.
They would have been fine with this.

Running 'company' cars like this gave them a constant supply of quality used cars to feed into the dealer to artificialy inflate second hand value stats.

They wouldn't care about the fuel as such because it was all factored in.
The fact you hit the replacement milage limit in 6 months instead of 12 wasn't a problem.


On the other hand, when I worn d for a book publishers they would have fired you for doing it.

smile

hajaba123

1,338 posts

204 months

Saturday 14th June 2014
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Are there not tax issues to consider if private fuel os being paid for? BIK?

750turbo

6,164 posts

253 months

Saturday 14th June 2014
quotequote all
ORD said:
Probably a fraud. Otherwise, sounds great!

It amazes me how many people ask whether or not it's OK to defraud their employer.
How do you come to that conclusion then?

OP, have a quiet word with HR/Fleet Manager - No doubt HM Gov will be having their pound of flesh as well with the Fuel Allowance!

berlintaxi

8,535 posts

202 months

Saturday 14th June 2014
quotequote all
Gonna be a bit embarrassing if they ever want you to go out in your company car at short notice.

zzzzzzzzzzzzzzz

32,880 posts

246 months

Saturday 14th June 2014
quotequote all
hajaba123 said:
Are there not tax issues to consider if private fuel os being paid for? BIK?
Yes. At 40 percent tax you'll want to be doing 12k or so private miles a year to make it worth your while.

ChasW

2,162 posts

231 months

Saturday 14th June 2014
quotequote all
If the car is a perk then should be no problem. I know people who have company cars that work in London and commute by public transport. However I guess for certain business travel it will be expected that the company car is used therefore should be available in such instances.

BFG TERRANO

2,172 posts

177 months

Saturday 14th June 2014
quotequote all
The company I work for wouldn't like that. Use it don't abuse it is the unofficial line. Now and then you might pull it off but long term I think once it's clocked they will have a word about it.

ORD

18,195 posts

156 months

Sunday 15th June 2014
quotequote all
750turbo said:
How do you come to that conclusion then?

OP, have a quiet word with HR/Fleet Manager - No doubt HM Gov will be having their pound of flesh as well with the Fuel Allowance!
Obviously not the expected and contractual usage. OP knows that, which is why he hasn't just asked the question.

LooneyTunes

9,378 posts

187 months

Sunday 15th June 2014
quotequote all
Riley Blue said:
Does your fleet cover insure your wife for commuting to her place of work in your company car?
Last company car I had was very clearly social/domestic use only for spouses. Suspect many more are like that.

Irrespective of the company's policy/insurance it'll look like a piss-take to some there. Is it worth the risk that one of the management team gets worked up over it and the whole thing backfires for the OP in someway?

Could well be academic when the OP looks at the benefit in kind cost of private fuel. Need to do a LOT of private miles to make it worthwhile.

Sheepshanks

40,969 posts

148 months

Sunday 15th June 2014
quotequote all
Dombo said:
My company has just introduced a company car scheme where they just had an equivalent cash allowance system in the past. The policy with the car allows for one nominated driver and all private fuel if you opt for that.
Does that mean a nominated driver in addition to you? Or literally just one?

Dombo said:
It's a bit of a tricky one to ask the HR team!
It's one of those questions that you probably already know the answer to - even if it's technically OK, they're hardly likely to give their blessing.

You could keep quiet about it, but as others have pointed out, the insurance for non-employees might be for domestic purposes only - it was when I last had a company car (some staff took the piss big-time though in exactly the way you described).