Government BIK changes for company cars.
Discussion
I am a Field Engineer earning 37k a year and can basically pick anything up to £44000 in value and under 130c02. But I was shocked to see that I used to pay £400 PA for a Passat in 2005 and now I would pay more than 1500 and increasing every year. What car would you pick given the new tax rules. I had my heart set on a n A6 Black Edition or other premium make but the £2000 a year tax bill rising to £2450 in 2020 is just to much for me to digest. I am not allowed to go for hybrids or plugins yet so I'm stuck with diesel. My car is also full of tools so add half a ton the the weight so a hairdryer of a car is out of the question. I'm all for paying tax but seen as I only do 3000k a year personal and 140000k a year business I don't think it's worth the status.
Checked with my employer and it's a no go with a double cab because the emissions are higher than 130. It seems I have to have a car or the other option is to leave. So what do I choose? It seems that my colleagues are picking Jaguar XF saloons as the tax is lower than the estate. I don't think they are that great tbh and they have to have low spec to keep under £650 per month. I negotiated on my start of employment that I could have an Audi A6 Black Edition estate which sounded great until I saw the tax. I would ideally prefer an auto box due to years of driving bad ergonomically designed cars playing havoc with my back. I know this sounds silly but what would others choose if you were a Field Engineer covering 40k miles per annum?
That's exactly what I mean. Yes I could just pick a Ford focus estate but when you spend around 5 to 8 hours a day in your car driving around the UK and Europe you want something comfortable and capable. I currently drive an Octavia but boy has it hurt my back. I have problems with so many manual transmission cars that have pedals too far right, for instance I sat in a Jag XF manual and was shocked at how the clutch is positioned central to the seat so you find yourself sitting in a horrible position. The only two cars I have found that have pedals central and a good driving position are Skoda Superb and Ford Mondeo. So I will go along the route of comfort and not so much style. But I do think company car drivers have become an easy silent target for HMRC, so much so that I will be leaving my job as Field Engineer as soon as I can. It will get to a point where no one in their right mind will consider company vehicles. I also pay for a family car for my wife and kids and hardly ever use my company car for personal so it's just not worth it for me. HMRC say that to be exempt I would have to leave my car at the company office but I am Field based working from home so my home is my office and my companies office is in Germany so in reality I am leaving it at the office.
I know you are right and I have already been told this believe it or not by colleagues. So I basically wanted to explore every imaginable way to reduce or get rid of it but it looks like I have to deal with it and just get on with life.
I can see you point on cost that others have to pay so yes I believe that no other possible stones have been left unturned.
Thanks for your advice and for putting up with me moaning. Hopefully I will soon be able to discuss how great my new car is.
Thanks
Softree.
I can see you point on cost that others have to pay so yes I believe that no other possible stones have been left unturned.
Thanks for your advice and for putting up with me moaning. Hopefully I will soon be able to discuss how great my new car is.
Thanks
Softree.
After looking at all the options it looks like I don't have many so for me the best option is to go for a Skoda Super SE-L Business 150 , it comes with a lot of kit as standard and is comfortable and large enough for me (6'3") and is not bad on BIK for the size. It feels the size of an A6 inside and has an enormous boot. I fell into the trap that a lot of people do in wanting a car that looks good on my drive and sets an image but there is a price to pay for that and for a work horse vehicle it's a big price to pay. Thanks for all your advice guys!
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