Company Car Policy change
Discussion
My company have all but done away with our option to take a car versus the car allowance, I never bothered as I don't need one but it was part of the package when I joined and it was always an option, now, unless you are doing 10k miles a year as an essential user it is just the allowance, so no real change for me apart from the choice being removed.
I can understand why they are doing this but what bothers me is that the allowance has stayed the same for god knows how long, I have been there 4 years and it hasn't changed (and not before for a long time), I kind of ignored this as there was a choice to be made, now its kind of salary but cheaper to call it a car allowance, salary that does not rise with inflation, attract employer NI, pension contributions or get reflected in the cost of living rise.
Now, I appreciate in these times it is perhaps a little churlish to complain but it has kind of annoyed me as it was done without any consultation or warning and no mention of the allowance changing despite us having to provide our own car now with no option and the allowance not changing in four years given the cost increase in motoring.
What do other companies do, is this typical ? generally I cant complain as they are a decent employer but this does irk me somewhat !
I can understand why they are doing this but what bothers me is that the allowance has stayed the same for god knows how long, I have been there 4 years and it hasn't changed (and not before for a long time), I kind of ignored this as there was a choice to be made, now its kind of salary but cheaper to call it a car allowance, salary that does not rise with inflation, attract employer NI, pension contributions or get reflected in the cost of living rise.
Now, I appreciate in these times it is perhaps a little churlish to complain but it has kind of annoyed me as it was done without any consultation or warning and no mention of the allowance changing despite us having to provide our own car now with no option and the allowance not changing in four years given the cost increase in motoring.
What do other companies do, is this typical ? generally I cant complain as they are a decent employer but this does irk me somewhat !
Dixie68 said:
You should feel lucky - my company, (large multinational), used to hire us BMWs and Audis to get to site. My last few cars included a 1.4 Nissan Note and the worst car I've ever driven, a 1.6 Astra.
Lucky for not having any car option ?Not really all that bothered on balance, just interested whether this was a common practice.
Our payment has only just gone up after 3 years of being with the company. But it only applies to those approaching the end of the 3 year agreement. You don’t get any increase during the 3 years just put on what ever the current rate is when you re sign.
The company car option still works out quite a bit cheaper over the term compared to buying a car in the companies spec. Roll on the delivery of my new passat…
The company car option still works out quite a bit cheaper over the term compared to buying a car in the companies spec. Roll on the delivery of my new passat…
We have no co. car policy. We use our own cars, getting an allowance pcm and 25ppm for business mileage. I do about 16k per year business miles and 16k per year personal miles. The allowance has not gone up in the 3 years I have been here, despite the cost of motoring increasing significantly in that period.
eltax91 said:
We have no co. car policy. We use our own cars, getting an allowance pcm and 25ppm for business mileage. I do about 16k per year business miles and 16k per year personal miles. The allowance has not gone up in the 3 years I have been here, despite the cost of motoring increasing significantly in that period.
The mileage rates are capped by HMRC for various types of scenario (own car/company car etc etc).C
CraigyMc said:
eltax91 said:
We have no co. car policy. We use our own cars, getting an allowance pcm and 25ppm for business mileage. I do about 16k per year business miles and 16k per year personal miles. The allowance has not gone up in the 3 years I have been here, despite the cost of motoring increasing significantly in that period.
The mileage rates are capped by HMRC for various types of scenario (own car/company car etc etc).C
T16OLE said:
Can`t complain, I do like the 40p Per miles arrangement however
I used to like it when fuel was 60p litre and I was running a £50 fiesta, now I'd rather go an hire a corsa or something similar if I'm going anywhere for work not sure the 40p a mile really covers it anymore. Ours took away the option of a car (for new entrants) and those who had one and didn't do the required mileage (12K per annum) were changed to cash at the end of th existing lease.
Never bothered me as I've always taken the cash as the loss of allowance and tax were way more, even taking into account all the running costs etc.
Our allowance has not changed (at my level) for the 6 years I've been here thouhgh...
The petrol allowances though (in line with HMRC guidelines) are poor though as I can't break even no matter how much I drive like Miss Daisy - fortunately my mileage has come down from 16K/year to about 5K now so less affected.
Never bothered me as I've always taken the cash as the loss of allowance and tax were way more, even taking into account all the running costs etc.
Our allowance has not changed (at my level) for the 6 years I've been here thouhgh...
The petrol allowances though (in line with HMRC guidelines) are poor though as I can't break even no matter how much I drive like Miss Daisy - fortunately my mileage has come down from 16K/year to about 5K now so less affected.
T16OLE said:
CraigyMc said:
eltax91 said:
We have no co. car policy. We use our own cars, getting an allowance pcm and 25ppm for business mileage. I do about 16k per year business miles and 16k per year personal miles. The allowance has not gone up in the 3 years I have been here, despite the cost of motoring increasing significantly in that period.
The mileage rates are capped by HMRC for various types of scenario (own car/company car etc etc).C
Current rates for company cars as follows:
Data from http://www.hmrc.gov.uk/cars/advisory_fuel_current....
Some companies are clamping down in other ways. Mine has essentially removed the "engines over 2000cc" bracket, for example.
C
J4CKO said:
Dixie68 said:
You should feel lucky - my company, (large multinational), used to hire us BMWs and Audis to get to site. My last few cars included a 1.4 Nissan Note and the worst car I've ever driven, a 1.6 Astra.
Lucky for not having any car option ?Not really all that bothered on balance, just interested whether this was a common practice.
Lucas North said:
The recession has been a great excuse for many companies to maximise profits, change terms and conditions of employments/benefits, because they know if you don't like it, chances are there are 10 people waiting to get your job.
The recession has been a great reason for many companies to minimise losses, change terms and conditions of employments/benefits, because they know if they don't, chances are there are not going to be any jobs.EFA;)
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