Use personal car for work.

[andygo]

I am employee number 1 for a new start business 3 years ago.

I wanted the company to do well, so wasn't too bothered about using my car for work occasionally.

The company has boomed and has issued with a new contract which implies I have to keep my car insured for business use but also I may be sent anywhere at the companies discretion.

I have recently bought a Golf R, and whilst it was bought for cash,so no PCP/lease implications I'm not happy at the potential of doing 6k miles per year extra on the resale value, after say, 3 years.

Typically I only get 25p per mile fuel allowance which just about pays for fuel, but not wear, tear and depreciation, not to mention the exposure to having a bump. OK as the company was being built up, but I'm not a charity!

Whats the norm with other small companies?

[anonymous-user]

What did your employers say when you discussed the matter with them?

[surveyor]

HMRC standard rate. You can at least claim some of this back from HMRC

[eltax91]

I’ve worked for both small and large companies for last 15 years, it’s always been:-

1. 25ppm AND monthly allowance (ranged from 3.5kpa to 7k in different places)

OR

2. 45ppm flat rate with no allowance

Bit cheeky for them to effectively asked for best if both worlds

Take the train and expense the tickets? Or is hiring an option when Work want you around the place?

[ThunderSpook]

Why are you only getting 25p/mile?

[Jimi.K.]

I used to work for a relatively small company (~150 employees) and from memory got 45ppm when I was using my own car, and later on 24ppm when I had a company car. Your company should be paying you 45ppm for the first 10k miles or so.

[JakeT]

Mate of mine was in a similar position. His response was to get public transport and have all of his necessary materials transported to the site beforehand. The firm were willing to do this, but not provide 45ppm. I'd think about doing something similar. At that rate, you are effectively paying to drive for work then. I doubt a Golf R will cost less than 45ppm to run, with depreciation included.

My employer pays me 45ppm for work driving. They don't offer a company car, or allowance. That's the only option.

[Valgar]

You can claim the difference from HMRC (20ppm) however as I understand it that's a tax allowance so they don't pay you 20p per mile, it just means if you did 10,000 miles you can put down £2000 as expenditure therefore you can earn your tax rate plus £2000 before you pay any tax. (£400 better off in take home)

Please an accountant correct me if I'm wrong.

What did the previous contract say?

As far as I see it, you have two choices, accept or refuse the contract, you have little legal ground to stand on as far as i'm aware but I'm no lawyer

Edited by Valgar on Wednesday 21st February 19:49

[cholo]

Buy a £300 banger to use for work only and then when you get stranded tell then you need a car allowance.

[snotrag]

I would say the norm is to be claiming more like 44pper mile in the morning our situation. That's what I get and it's a nice wee earner. In fact it's preferable to an allowance if the miles are lowish.

[NK85]

I work for a small company, and I only ever use my personal car for local site visits- within a 10/15 mile radius.

Anything more than that, then it's a hire car. A nice new shiny car delivered and picked up from my door.

[andygo]

My trips can be very short notice. I’ve done 300 odd miles in 2 weeks with maybe another 200 next week at least.

It’s turning an average mileage Golf R into a high mileage one with all the cost implications that results

[SystemParanoia]

Stand up for yourself man.

Say NO

and mean it.

[Blue Oval84]

You're going to have to talk to them I'm afraid and explain your predicament, but also explain why you'd never objected earlier (i.e. you were doing them a favour)

[Valgar]

andygo said:

My trips can be very short notice. I’ve done 300 odd miles in 2 weeks with maybe another 200 next week at least.

It’s turning an average mileage Golf R into a high mileage one with all the cost implications that results

The question is, what are you going to do about it?

Option 1. Accept the changes and deal with the consequences, maybe having to buy a better suited car, any reasonable car should actually see you make a profit on driving.

1000 miles = £250. (+ £200 tax allowance if you claim through HMRC as mentioned above)

1000 miles, 25 gallons (40mpg) = <£150



Option 2. Refuse the contract and have your boss terminate the contract and offer you re-employment with the new conditions which is within the law. https://www.nidirect.gov.uk/articles/changes-emplo...

So it's either option 1 or potentially no job

[lbc]

The company should provide you with a pool or hire vehicle.

Any use of your own vehicle for business use should be voluntary, and paid at HMRC rates.

The 25p rate is for company owned vehicles where you have to claim back the fuel used.

[Valgar]

lbc said:

The company should provide you with a pool or hire vehicle.

Any use of your own vehicle for business use should be voluntary, and paid at HMRC rates.

The 25p rate is for company owned vehicles where you have to claim back the fuel used.

gov.uk said:

If you use your own vehicle for business, you may be able to claim ‘Mileage Allowance Relief’.

To work out how much tax relief you can claim, add up your business mileage for the tax year and multiply it by the approved mileage rates.

If your employer doesn’t pay you a mileage allowance you can claim the full approved amount of Mileage Allowance Relief.

If your employer pays you a mileage allowance but it is less than the approved amount, you can claim Mileage Allowance Relief on the difference.

If your employer pays you more than the approved amount you’ll have to pay tax on the difference.

[andygo]

Valgar said:

The question is, what are you going to do about it?

Option 1. Accept the changes and deal with the consequences, maybe having to buy a better suited car, any reasonable car should actually see you make a profit on driving.

1000 miles = £250. (+ £200 tax allowance if you claim through HMRC as mentioned above)

1000 miles, 25 gallons (40mpg) = <£150



Option 2. Refuse the contract and have your boss terminate the contract and offer you re-employment with the new conditions which is within the law. https://www.nidirect.gov.uk/articles/changes-emplo...

So it's either option 1 or potentially no job

I don't see why I should have to buy a shed to go on company business and insure a car with no no claims. I already have a multi car policy with shared NCB with the Golf and my Porker.

And not only that, I still have to maintain said shed so it's not a win win.

[surveyor]

lbc said:

The company should provide you with a pool or hire vehicle.

The 25p rate is for company owned vehicles where you have to claim back the fuel used.

No it's not. There is a separate HMRC table for Company Car users.

https://www.gov.uk/government/publications/advisor... - the diesel rates are a tad harsh IMO.

[Valgar]

andygo said:

I don't see why I should have to buy a shed to go on company business and insure a car with no no claims. I already have a multi car policy with shared NCB with the Golf and my Porker.

And not only that, I still have to maintain said shed so it's not a win win.

So you still have the same options, accept it or not.

It's worth speaking to your boss about it, see if you can come to some arrangement, especially the 45ppm for the first 10,000 miles. However if your job requires you to use your own vehicle and you're not happy with that then it's time to look for other work.