Been asked to use my own car for business use

[HuntD]

I've been with at my current employer for a while now but it looks like i'm now needing to commute to more than one place of work, including the continent.

We have boggo 1.6/2.0 diesel company cars but my employer won't pay for the insurance as I am under 25 and so they have asked me to use my own car, even though when I took the job they said they’d take out a new insurance policy if and when I need it, now they are saying its not worth it.

I don’t mind this as such, but they will only pay me 45p a mile and my car is quite thirsty so there is not much leaway. It would also stop me from buying a V8 which was on the cards this summer.

So, what are my options? Is it unreasonable to ask for a fuel card as well as 45p per mile? What about the additional insurance premium for adding business use to my policy?

To be honest I’ve been given a good career opportunity here so I don’t want to blow it, but I can’t help but feel short changed.

[orangesrule]

Remember also, your insurance will go up, as it wont be social domestic and pleasure; but business use.

Ask them to cover your costs, petrol, tyre wear, extra service charges, insurance premium increases, loss of value due to mileage and break down cover. Work it out, give them a reasonable figure. They'll probably give you a company car.

[Pints]

Sounds like your employer is trying it on.
Occassional business use with your own car is understandable, but asking you to make trips across the channel and use it for regular use is something else altogether.

I don't know the legal side of things but I wouldn't be happy if I was in the same boat as you.

[Marf]

They should pay your out of pocket expenses IMO. My company will pay mileage and cover the insurance costs of using a personal car for business use.

[XDA]

Surely your employer has a fleet insurance policy so I wouldn't have thought age would be an issue?

I'm 24 and I've had a company car since the age of 21.

[mxspyder]

ONLY 45ppm?!!!

If paying for fuel alone, thats about 14mpg at current petrol prices. If you could manage 30mpg you would be up by 23p for every mile you drive.

I think there may be a tax issue with being paid over 40ppm? I think you will be taxed on 5ppm

If you claim over 12,000 miles you will be hit hard on tax - again I think the tax will be charged on 20ppm

As far as insurance goes - try Direct Line, as they include business for no extra cost.

[davepoth]

The company should be able to offer you an allowance instead of a car; that way the responsibility would be on you to arrange the insurance which would shut them up. Get something like a Polo Bluemotion, do 90mpg, and you'll probably be up on the year.

[NickXX]

The 45ppm is meant to cover fuel and all additional costs including the extra insurance burden.

[mxspyder]

NickXX said:

The 45ppm is meant to cover fuel and all additional costs including the extra insurance burden.

Thats why I said if...

Given that 30mpg in petrol is £0.21 per mile, and lets say you do 10,000 miles a year, thats £2100 (before any tax liability is calculated) to pay for 1 service and insurance (which if you shop around is free)

Can you run a car doing 10k pa for £2100?

I know I can

[HuntD]

Thanks for the brilliant response (so quick too ).

The trouble is my M3 costs me 37p a mile (inc maintenance and insurance), but does not include depreciation! I don't see why I should change my car either.

Also, our company handbook says business insurance is the responsibility of the employee.

Edited by HuntD on Sunday 4th March 13:18

[mxspyder]

HuntD said:

Thanks for the brilliant response (so quick too ).

The trouble is my M3 costs me 37p a mile (inc maintenance and insurance), but does not include depreciation! I don't see why I should change my car either.

I would suggest that your employer has made quite a reasonable offer, if they pay you enough to be able to run an M3 for company use how would that look to the members of staff who get a 1.6/2.0 diesel?

The company will be trying to keep a level playing field between staff members.

I think that its down to you, do you want the Job or the car? and as this is PH, you know the answer !

[HuntD]

mxspyder said:

I would suggest that your employer has made quite a reasonable offer, if they pay you enough to be able to run an M3 for company use how would that look to the members of staff who get a 1.6/2.0 diesel?

The company will be trying to keep a level playing field between staff members.

I think that its down to you, do you want the Job or the car? and as this is PH, you know the answer !

Ah, thats what I love about PH - there's always someone who can shed a second point of view (wrongly or rightly)

[Hoofy]

You have to look at it from the employer's viewpoint. Why would you, as an employer, want to subsidise someone's lifestyle?

Your best bet is to buy/borrow a cheap runaround with a small engine and still take the 40ppm. That way it's like an informal payrise.

[Pints]

Hoofy said:

You have to look at it from the employer's viewpoint. Why would you, as an employer, want to subsidise someone's lifestyle?

Your best bet is to buy/borrow a cheap runaround with a small engine and still take the 40ppm. That way it's like an informal payrise.

Subsidising his lifestyle is one thing, but expecting him to run company errands - or whatever - to France at the employee's expense is something else altogether.

[CDP]

If it's a lot of mileage just get a Focus TD or something similar to stick the miles on and keep your M3 for pleasure. If the mileage isn't especially high you're probably not as badly off as you think.

[Hoofy]

Pints said:

Subsidising his lifestyle is one thing, but expecting him to run company errands - or whatever - to France at the employee's expense is something else altogether.

And they're not expecting it to cost him, hence paying per mile... however if he were to choose a 1mpg monster then that's not the company's fault.

[Pints]

Hoofy said:

And they're not expecting it to cost him, hence paying per mile... however if he were to choose a 1mpg monster then that's not the company's fault.

I think with the big increase in wear & tear, increased insurance costs, accelerated depreciation etc. a figure of 45ppm wouldn't really cover it.

If they're worried about him funding his choice in car, they should just give him a company car and fuel card, and ask him to log all mileage.

[Hoofy]

Pints said:

I think with the big increase in wear & tear, increased insurance costs, accelerated depreciation etc. a figure of 45ppm wouldn't really cover it.

The simplest answer, as you say, would be to put him on the company car scheme. The increase in wear and tear etc is proportionalish to his mileage so without doing a in-depth study into M3s, the official HMRC rate will have to do!

[cwis]

One word answer. "No".

I walk in to work - as far as the company is concerned I don't have a car. If they want me at a different site, it's their problem, not mine...

Did they say the company insurance thing to you in writing? If so, hold them to it.

[Munter]

Pints said:

If they're worried about him funding his choice in car,

I can't see any employer doing that!

What they are offering is quite fair. I typically do 20k miles for the company each year. 45ppm for the 1st 10k and then 25ppm after (max before it gets complex in tax).

It's up to the employee what car they choose to drive. I get 54MPG on average out of the diesel Avensis but others run petrol Subarus and Saab turbos etc and average about 20MPG.

If I were the OP I'd consider how many miles it has to be before I buy a high MPG car for the company miles. And keep the M3 for weekends.