Company car - personal use

[Gunwoody]

Hi all,
Firstly let me start by apologizing if this is a question that's been answered before. I did search but didn't really find an answer that's pertinent to my situation.

OK, here goes; I was promoted to a new more senior position within the company i work for. The position was a new function so there was no precedent. I received as part of my package a company car. This car was previously provided to a director (retired) and was passed to me as it still at the start of its 3yr lease. I did not choose this car. It is not provided in order to enable me to do my job - my job is office based for the most although i do attend the occassional external meeting as do all my colleagues but there is no day-to-day requirement to drive.

The car is insured for personal use and is not classed as a pool car so the BIK is payable in full (and believe me it's alot). I use the car daily to go to work as you would expect. My wife is also allowed to drive the vehicle as part of the personal usage in the package.

Now my question is this. Am i allowed to use the car as i see fit at any time during any normal week apart from where i may need to use it to go to meetings? The reason for the question is because my wife has occasionally gone on to use the car during the day after dropping me at work and i have thought nothing of it. She is only using it for pleasure/social not work as she is retired. It has now been raised with the MD and he is saying that absolutely under no circumstances is this to be allowed. Where do i stand? I'm the one paying full BIK for this vehicle and it seems alittle like they are cherry picking the rules but it's so hard to try and find a clear answer.

Any helpful wisdom gratefully received.
Best
Gunwoody

[anonymous-user]

You can both do what you like with it (unless the detailed company rules say you can't).

[SS2.]

If you don't feel you're getting value from the company's vehicle, leave it at the office and only use it when needed for business. That way, it becomes a pool car and you pay zero BIK.

TBF, I'd be a bit miffed if one of my employees was letting their other half use their company vehicle throughout the week.

[gizlaroc]

The problem is, the BIK is often more than you could simply contract hire one personally, so it really isn't a bonus in fact more of a financial chore.
If they then won't let your partner use it it is even more farcical, you're surely trying to get some value our of it.

[anonymous-user]

Both good points above.

You'll find a lot of rail commuters into London leave the nice "company car" at home for the OH to use and drive to the station in a cheap snotter...

[georgefreeman918]

I think if your paying full BIK for it, you need to use it daily for commuting and the external meetings. Id also be using it for personal use on evenings and weekends, but leaving it at home for your partner to drive imo isn't acceptable.

Or, leave it at work and use it as a pool car when need during working hours. Use your own car on evenings and weekends for personal use.

[Toltec]

gizlaroc said:

The problem is, the BIK is often more than you could simply contract hire one personally, so it really isn't a bonus in fact more of a financial chore.
If they then won't let your partner use it it is even more farcical, you're surely trying to get some value our of it.

Does sound a bit like they have landed the OP with a car they have to keep paying the lease on as a cheaper alternative to letting him chose one.

[Earthdweller]

SS2. said:

If you don't feel you're getting value from the company's vehicle, leave it at the office and only use it when needed for business. That way, it becomes a pool car and you pay zero BIK.

TBF, I'd be a bit miffed if one of my employees was letting their other half use their company vehicle throughout the week.

Why ?

If it is their company car and part of their salary package and they pay through the nose for it in tax ?

If it is insured for sdp for employee and spouse

[anonymous-user]

At the end of the day you have to ask yourself, "Am I happy with this job and this package?"

There's no prize for falling out with your employer over something relatively peripheral like the detailed cost of a company car.

[Spitfire2]

If full benefit in kind is being paid and the car is part of the remuneration package then its the OP's car to do with as he likes.

The management are being dicks.

[SS2.]

Earthdweller said:

SS2. said:

If you don't feel you're getting value from the company's vehicle, leave it at the office and only use it when needed for business. That way, it becomes a pool car and you pay zero BIK.

TBF, I'd be a bit miffed if one of my employees was letting their other half use their company vehicle throughout the week.

Why ?

If it is their company car and part of their salary package and they pay through the nose for it in tax ?

If it is insured for sdp for employee and spouse

Because if we provide a company car for an employee, I'd expect it to be available for use by that employee during work hours.

I have no problem with partners using the vehicles out of work hours (or when the vehicle isn't required to be used for company business), but not at times when business use may be required.

If an employee doesn't feel they are getting value from the [HMRC enforced] BIK costs, then the vehicle can quite easily become a pool vehicle.

[Earthdweller]

Gunwoody said:

Hi all,
Firstly let me start by apologizing if this is a question that's been answered before. I did search but didn't really find an answer that's pertinent to my situation.

OK, here goes; I was promoted to a new more senior position within the company i work for. The position was a new function so there was no precedent. I received as part of my package a company car. This car was previously provided to a director (retired) and was passed to me as it still at the start of its 3yr lease. I did not choose this car. It is not provided in order to enable me to do my job - my job is office based for the most although i do attend the occassional external meeting as do all my colleagues but there is no day-to-day requirement to drive.

The car is insured for personal use and is not classed as a pool car so the BIK is payable in full (and believe me it's alot). I use the car daily to go to work as you would expect. My wife is also allowed to drive the vehicle as part of the personal usage in the package.

Now my question is this. Am i allowed to use the car as i see fit at any time during any normal week apart from where i may need to use it to go to meetings? The reason for the question is because my wife has occasionally gone on to use the car during the day after dropping me at work and i have thought nothing of it. She is only using it for pleasure/social not work as she is retired. It has now been raised with the MD and he is saying that absolutely under no circumstances is this to be allowed. Where do i stand? I'm the one paying full BIK for this vehicle and it seems alittle like they are cherry picking the rules but it's so hard to try and find a clear answer.

Any helpful wisdom gratefully received.
Best
Gunwoody

If the vehicle is a perk and not needed for travelling for the business and significant miles you’d be almost certainly better off not having it

If you are away several nights a week and doing 40k pa business miles it makes sense . As a family car that does 8k a year it probably doesn’t

Especially if they’ve dumped a very high bik car that they are stuck with because of the lease penalties gut returning it

My wife ran a 320d till recently doing about 35k business miles pa

Her role changed and became much more home based .. now if she needs to travel she rents a car or uses a genuine company pool vehicle

Even allowing for having to buy a second car we are better off

[Jakg]

SS2. said:

TBF, I'd be a bit miffed if one of my employees was letting their other half use their company vehicle throughout the week.

I think that totally depends on if the car is a "perk" or a tool genuinely provided for the job. Here it sounds like the latter.

[Earthdweller]

SS2. said:

Earthdweller said:

SS2. said:

If you don't feel you're getting value from the company's vehicle, leave it at the office and only use it when needed for business. That way, it becomes a pool car and you pay zero BIK.

TBF, I'd be a bit miffed if one of my employees was letting their other half use their company vehicle throughout the week.

Why ?

If it is their company car and part of their salary package and they pay through the nose for it in tax ?

If it is insured for sdp for employee and spouse

Because if we provide a company car for an employee, I'd expect it to be available for use by that employee during work hours.

I have no problem with partners using the vehicles out of work hours (or when the vehicle isn't required to be used for company business), but not at times when business use may be required.

If an employee doesn't feel they are getting value from the [HMRC enforced] BIK costs, then the vehicle can quite easily become a pool vehicle.

Surely that depends on whether they are essential users or the car has been provided as a perk and part of the salary package .. the OP did say he’s just moved into a senior position and is office based with only occasional need to use the car for business purposes

If it’s an essential tool of the job fair enough .. but if it’s a perk of the role

Edited by Earthdweller on Thursday 7th February 21:38

[Hashtaggggg]

When I ran a car fleet I had to frequently put people into cars above above their grade, not what they wanted etc, as there was time left in the remaining lease.

We paid the difference to make sure they were not financially worse off with the car they were told to drive.

For a few months an employee had to drive a Range Rover on a Audi A4 allowance.

He was very sad when the A4 arrived a few months later.

[Muzzer79]

Interesting

I can see why you’re miffed but I can also see why the company would question supplying you with a decent car, which you pass to your wife to use.

However, if it’s not needed for work you should be able to let your wife use it - I know on occasion my wife has used mine, with no quibble,

I would suggest a sensible, diplomatic conversation with management highlighting that the car is not on site only when you’re sure it won’t be needed for business matters.

[edc]

Give them some solutions rather than arguing the point. Suggest an alternative of a car allowance of a sum you feel happy with.

[Dog Star]

Spitfire2 said:

If full benefit in kind is being paid and the car is part of the remuneration package then its the OP's car to do with as he likes.

The management are being dicks.

This.
I have never heard of a company being like this about a "perk car" (which is, essentially, what the OP has). I'd tell them to shove their car where the sun don't shine.

[Deesee]

Ask them to take it back / give it to someone who needs it, and ask for the cash allowance instead, that should stop the sniping.

[Drumroll]

Spitfire2 said:

If full benefit in kind is being paid and the car is part of the remuneration package then its the OP's car to do with as he likes.

The management are being dicks.

Why they being d!cks? The main pint of it being a company car is that it is available to be for company business. How would the OP get on if he was suddenly asked to attend a meeting at a customers address etc. I doubt if any company car is provided on a "do what you like with it" basis.