Company Vehicle
Discussion
Looking to get a vehicle for our Business Development Manager.
20k miles per annum +/-
Auto
Ideally a diesel but due to tax we think a PHEV would be best.
His mileage seems to kick leasing into touch.
So do we buy a used PHEV or a used diesel?
Is it correct that he would pay huge amounts of tax personally on the diesel?
Really struggling with this as we need to get him something, but cant break the bank as hes only a few months in.
Any suggestions welcomed!
20k miles per annum +/-
Auto
Ideally a diesel but due to tax we think a PHEV would be best.
His mileage seems to kick leasing into touch.
So do we buy a used PHEV or a used diesel?
Is it correct that he would pay huge amounts of tax personally on the diesel?
Really struggling with this as we need to get him something, but cant break the bank as hes only a few months in.
Any suggestions welcomed!
Presumably a 40% tax payer?
If so bik will be a killer on diesel, plus not many brands sell them.
For example a Skoda superb is about £5k a year tax for a 40% tax payer
A bmw 330e hybrid is about £1.5k per year for a 40z tax payer.
Have a look at comcar.co.uk for a tax comparison of different cars
If so bik will be a killer on diesel, plus not many brands sell them.
For example a Skoda superb is about £5k a year tax for a 40% tax payer
A bmw 330e hybrid is about £1.5k per year for a 40z tax payer.
Have a look at comcar.co.uk for a tax comparison of different cars
Uncle boshy said:
Presumably a 40% tax payer?
If so bik will be a killer on diesel, plus not many brands sell them.
For example a Skoda superb is about £5k a year tax for a 40% tax payer
A bmw 330e hybrid is about £1.5k per year for a 40z tax payer.
Have a look at comcar.co.uk for a tax comparison of different cars
Yeah he is, so diesel out!If so bik will be a killer on diesel, plus not many brands sell them.
For example a Skoda superb is about £5k a year tax for a 40% tax payer
A bmw 330e hybrid is about £1.5k per year for a 40z tax payer.
Have a look at comcar.co.uk for a tax comparison of different cars
Will check that site thanks.
Silvanus said:
Does he need to use it for private use? If it's just for business miles only wouldn't that mean no tax.
Would that mean it would need to be classed as a pool car and stay at the office?He’s located around 40 miles from office.
I do know people would just put it down as a pool car and run the risk but that always worries me.
rufmeister said:
Silvanus said:
Does he need to use it for private use? If it's just for business miles only wouldn't that mean no tax.
Would that mean it would need to be classed as a pool car and stay at the office?He’s located around 40 miles from office.
I do know people would just put it down as a pool car and run the risk but that always worries me.
I have 20 employees in cars. We go the car allowance route, yes they get taxed on the allowance but then choose what they want and pay no company car tax. Swings and roundabouts.
Our guys see it as a benefit. We then refund all business mileage at the approved rate.
We pay them £750 per month before tax so he could get something for around £450 before it costs him any money but depends on his insurance situation and of course he needs tax, mot and pay for the services, tyres himself.
Our guys see it as a benefit. We then refund all business mileage at the approved rate.
We pay them £750 per month before tax so he could get something for around £450 before it costs him any money but depends on his insurance situation and of course he needs tax, mot and pay for the services, tyres himself.
interstellar said:
I have 20 employees in cars. We go the car allowance route, yes they get taxed on the allowance but then choose what they want and pay no company car tax. Swings and roundabouts.
Our guys see it as a benefit. We then refund all business mileage at the approved rate.
We pay them £750 per month before tax so he could get something for around £450 before it costs him any money but depends on his insurance situation and of course he needs tax, mot and pay for the services, tyres himself.
Given our guys mileage, at 40p a Mille we will end up costing ourselves a couple of thousand a month if we were to give him the £750 as well. Our guys see it as a benefit. We then refund all business mileage at the approved rate.
We pay them £750 per month before tax so he could get something for around £450 before it costs him any money but depends on his insurance situation and of course he needs tax, mot and pay for the services, tyres himself.
Thanks for all the ideas guys, will chew it over.
rufmeister said:
interstellar said:
I have 20 employees in cars. We go the car allowance route, yes they get taxed on the allowance but then choose what they want and pay no company car tax. Swings and roundabouts.
Our guys see it as a benefit. We then refund all business mileage at the approved rate.
We pay them £750 per month before tax so he could get something for around £450 before it costs him any money but depends on his insurance situation and of course he needs tax, mot and pay for the services, tyres himself.
Given our guys mileage, at 40p a Mille we will end up costing ourselves a couple of thousand a month if we were to give him the £750 as well. Our guys see it as a benefit. We then refund all business mileage at the approved rate.
We pay them £750 per month before tax so he could get something for around £450 before it costs him any money but depends on his insurance situation and of course he needs tax, mot and pay for the services, tyres himself.
Thanks for all the ideas guys, will chew it over.
interstellar said:
rufmeister said:
interstellar said:
I have 20 employees in cars. We go the car allowance route, yes they get taxed on the allowance but then choose what they want and pay no company car tax. Swings and roundabouts.
Our guys see it as a benefit. We then refund all business mileage at the approved rate.
We pay them £750 per month before tax so he could get something for around £450 before it costs him any money but depends on his insurance situation and of course he needs tax, mot and pay for the services, tyres himself.
Given our guys mileage, at 40p a Mille we will end up costing ourselves a couple of thousand a month if we were to give him the £750 as well. Our guys see it as a benefit. We then refund all business mileage at the approved rate.
We pay them £750 per month before tax so he could get something for around £450 before it costs him any money but depends on his insurance situation and of course he needs tax, mot and pay for the services, tyres himself.
Thanks for all the ideas guys, will chew it over.
Ok, got it, thanks.
Just dawned on me, we have mobile operatives who take a van home every night, and don’t use it for personal use, we could do the same for the BDM as stated by someone else. As long as we ensure we have documentation to prove he doesn’t use it personally and mileage logs we should be ok?
Just dawned on me, we have mobile operatives who take a van home every night, and don’t use it for personal use, we could do the same for the BDM as stated by someone else. As long as we ensure we have documentation to prove he doesn’t use it personally and mileage logs we should be ok?
GreatGranny said:
So he gets a company car but can't do any private miles in it?
What did you say regarding company car when you offered him the job?
Did the job description state company car/allowance?
We took him on in a bit of a rush, and it was agreed a temporary vehicle would be available for his use, so we bought him a 2015 fiesta to get him mobile, its now 5 months or so since he started and he needs something more fit for purpose.What did you say regarding company car when you offered him the job?
Did the job description state company car/allowance?
He does have access to a private car, however we all know, he would use his company car for private use, so guess thats out also, and if correct as pointed out, that HMRC dont like that arrangement, we are back to square 1.
He doesn't have a great credit rating, so getting what would be deemed a suitable car with an allowance would be a struggle also.
We want to have a newish car, that has some nice features and keeps him happy and safe, and also doesn't look terrible to clients.
I'm thinking a used PHEV may be the way forward.
Have a look at a Toyota Corolla self charging hybrid.
No need to plug in, diesel like economy but lower BIK and a 10 year Toyota warranty
The dealers (in my experience) are utterly brilliant, the cars are well made and the warranty support is 1st class. Lots to choose from, estates and hatches, 1.8 or 2.0, and spec levels from OK to kitchen sink.
Hugely underrated cars
No need to plug in, diesel like economy but lower BIK and a 10 year Toyota warranty
The dealers (in my experience) are utterly brilliant, the cars are well made and the warranty support is 1st class. Lots to choose from, estates and hatches, 1.8 or 2.0, and spec levels from OK to kitchen sink.
Hugely underrated cars
In that case a 330e or similar will do the job unless you can get a used ev which is better for him but the complications of charging on the move may be an issue.
By the way, a used PHEV won’t really benefit him as most company car drivers never charge it and just fill it up with petrol on the company as there’s no incentive for them to use their own electric to charge it up. My next door neighbour had an outlander for three years and never once plugged it in. He just drove it as a petrol vehicle.
By the way, a used PHEV won’t really benefit him as most company car drivers never charge it and just fill it up with petrol on the company as there’s no incentive for them to use their own electric to charge it up. My next door neighbour had an outlander for three years and never once plugged it in. He just drove it as a petrol vehicle.
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