Company car question...

[JimmyJamJerusalem]

Ok so used to be into sports cars and track days but after getting a job with a company car it didn’t stack up so I’ve been driving boring diesels for the last 7yrs or so.... I’m after an Elise as a private car so need to do some work reducing the BIK payment I have with my company car.

So....

I spoke to HMRC and even if you do not use the company car privately it is still considered a benefit if it is AVAILABLE to the employee for personal use.

I work from home so all miles I drive in the week are business miles.

HMRC told me if I can agree with my company that the car is no longer available for me to use personally it can be removed from my P11d as it would no longer concern them as it wouldn’t be a benefit.

Is there any HR reason that the company might not allow me to do this...? I have raised the query with them but the HMRC guy made a comment that the company would be liable for tax payments (as I’d not be paying it) anyone know what he meant?

Edited by JimmyJamJerusalem on Tuesday 20th August 14:03

Edited by JimmyJamJerusalem on Tuesday 20th August 14:36

[RammyMP]

Id be amazed if your company give you a company car then tell the tax man it’s not your car?

If you work from home give them the car back and take an allowance. If there’s no allowance, no company car is better than having one if you don’t do any business miles anyway?

[Pintofbest]

JimmyJamJerusalem said:

I spoke to HMRC and even if you do not use the company car privately it is still considered a benefit if it is AVAILABLE to the employee for work.

HMRC told me if I can agree with my company that the car is no longer available for me to use personally it can be removed from my P11d as it would no longer concern them as it wouldn’t be a benefit.

These two don't add up - you can have a company supplied vehicle based at home and as long as you don't use it at all for personal reasons then it is not a benefit. The first statement you make about what HMRC says is wrong and doesn't match the second.

[JimmyJamJerusalem]

Pintofbest said:

JimmyJamJerusalem said:

I spoke to HMRC and even if you do not use the company car privately it is still considered a benefit if it is AVAILABLE to the employee for work.

HMRC told me if I can agree with my company that the car is no longer available for me to use personally it can be removed from my P11d as it would no longer concern them as it wouldn’t be a benefit.

These two don't add up - you can have a company supplied vehicle based at home and as long as you don't use it at all for personal reasons then it is not a benefit. The first statement you make about what HMRC says is wrong and doesn't match the second.

Yes you’re right, sorry I made a mistake there, I’ve edited it now.

It is a benefit if it is available to the employee (regardless of whether I use it)

I was hoping to give up the right to personal use of the vehicle. Get employer to agree that it is to be used only for business purposes

[CooperS]

I now want to know with my new job if I can get an Elise as my company car?

[dibblecorse]

CooperS said:

I now want to know with my new job if I can get an Elise as my company car?

Good luck with that .....

[Superchickenn]

If it helps my dad went through this, he had a company Van, its got a tracker fitted and now that he doesnt use it for any personal use (work confirmed this) his tax was adjusted to suit.

Cheers

[crofty1984]

It’s an option available to us that I’m considering for next year. We opt out of personal use then don’t get taxed as it’s solely a tool for work. We get no outside benefit so no BIK. Then I spend the money saved on something ridiculous for the 300-500 miles a month of personal use.

[ElectricPics]

Superchickenn said:

If it helps my dad went through this, he had a company Van, its got a tracker fitted and now that he doesnt use it for any personal use (work confirmed this) his tax was adjusted to suit.

Cheers

It's much easier to prove you're not doing personal miles with a van and HMRC are more open to it, especially if there's monitoring. The rules are simpler for vans anyway and even if you use one for personal miles, the BIK is set at a fixed £3,430 which is just £630 actual tax paid a year for a lower-rate taxpayer.

OP, if you even drive once from home to your company premises or back, the car will have been used privately as that's a commute and you'd be liable for BIK. No employer I've ever heard of will want to go to the trouble of declaring a car is for business use only especially when there are penalties for changing a P11D after a mistake. The only time I've seen it done are when cars are really only used for business and left at business premises overnight.

[joshleb]

Friend of mine tried to do this but because it was kept at his during the week and weekend his company wouldn't let him progress with it.

His contractual place of work was his office, so as mentioned above, he was technically commuting when he ever had to go to the office.

[Court_S]

When is your company car due to go back? I can't imagine that your employer will want to take the tax hit so you can save a few quid.

Your best option is to hold on, hand the car back and take a cash allowance. The BIK doesn't seem to make company cars all that attractive these days unless you do mega miles - my vRS costs me a fortune. It's been a bloody good car, but roll on 24th September when it gets collected.

[Heartworm]

My old place wouldn’t let people do this. One chap worked less than a 5 minute walk from the office and never took the car home instead leaving it in the work car park. They still wouldn’t change it and he had to pay BIK.

[berlintaxi]

Thought HMRC took the view that the first journey of the day was commuting so you are always deemed as having personal use of the car if you keep it at home.

[JimmyJamJerusalem]

ElectricPics said:

Superchickenn said:

If it helps my dad went through this, he had a company Van, its got a tracker fitted and now that he doesnt use it for any personal use (work confirmed this) his tax was adjusted to suit.

Cheers

It's much easier to prove you're not doing personal miles with a van and HMRC are more open to it, especially if there's monitoring. The rules are simpler for vans anyway and even if you use one for personal miles, the BIK is set at a fixed £3,430 which is just £630 actual tax paid a year for a lower-rate taxpayer.

OP, if you even drive once from home to your company premises or back, the car will have been used privately as that's a commute and you'd be liable for BIK. No employer I've ever heard of will want to go to the trouble of declaring a car is for business use only especially when there are penalties for changing a P11D after a mistake. The only time I've seen it done are when cars are really only used for business and left at business premises overnight.

Hmm, does sound unlikely.... I work from home so all trips are business trips when working (no commuting) and I would leave it parked at home (place of work) and use private vehicle when travelling privately.

As per p11d amendments are you fined for change of circumstance the same as you would if you made an error?

[JimmyJamJerusalem]

Court_S said:

When is your company car due to go back? I can't imagine that your employer will want to take the tax hit so you can save a few quid.

Your best option is to hold on, hand the car back and take a cash allowance. The BIK doesn't seem to make company cars all that attractive these days unless you do mega miles - my vRS costs me a fortune. It's been a bloody good car, but roll on 24th September when it gets collected.

Do they take a tax hit then? This is the part I’m unclear of?

[NS66]

What sort of business miles? can you get a full electric car / viable or on your choice list? As of April next year the BIK is 0% with a tiny increase the following year.

I am looking to get a Nissan Leaf and use the savings to run my money pitt collection!!

[JimmyJamJerusalem]

I’m doing approx 40,000miles per year so best option for me is a ‘work only’ car and use bik savings as contribution to run the Elise as a weekend toy

[JimmyJamJerusalem]

Found this...

Details are outlined, looks pretty good, just need employer on board

https://www.gov.uk/hmrc-internal-manuals/employmen...

[berlintaxi]

Trouble with that is you only have to use the car once in a year to go from your house to your usual place of work and it is classed as private use.

https://workmileagetaxrebate.co.uk/what-journeys-d...