Company car, and only using for work - tax issues?

gadgetman · 01-10-2007, 22:08

New firm give me a Mondy estate for a company car.

However, I only want to use it soley for work, and do all my private stuff in the Octy - my expensive toy, will all the goodies.

The firm pay for all fuel, and private mileage is clamed back at a rate to cover fuel and running costs (circa 15p/mile). So how can I get around the thieving taxman when I dont even want to use it for personal use at all?

Dr Zoidberg · 01-10-2007, 22:18

You are required to pay tax on a vehicle provided by your employers unless A) You don't use it for private purposes *AND* B) you are not allowed to use it for private purposes.

If your employers are prepared to put it in writing that you are specifically prohibited from using it for personal purposes then you shouldn't pay tax.

There is existing case law to cover whether the drive to and from your office is private or business use , but if it's always returned to the company car park and you travel home in your car then you are pretty safe.

<edit> Car benefit: prohibition of private use has this from an official source

gadgetman · 01-10-2007, 22:30

Meh, so *should* they call me in the office before a call-out that's private use?

Mother *******. Well the prohibited use would be easy to ask my employer to provide.

But do they have to go that far? Surely If I could proove I havent done any, even if it means logging every to, from & about turns???

Dr Zoidberg · 01-10-2007, 22:33

Nope, even if you never drive it but it's available for private use you still need to pay tax , and if your normal place of work is the office and you use it to commute you must pay.

DaveI · 01-10-2007, 22:38

You could get the company to state that they don't pay for private fuel, this means you would have to log mileage. The tax I pay for private fuel is almost as much as the tax I pay for the whole car!

gadgetman · 01-10-2007, 22:39

Normal place of work will be where there is a breakdown. Only going into the office now and again to collect parts, do paperwork etc.

So I should be able to satisfy both parts?

What ban would be considered sufficient to taxman? Gross misconduct? Extortunate payback rates?

gadgetman · 01-10-2007, 22:41

Quote:

Originally Posted by DaveI

You could get the company to state that they don't pay for private fuel, this means you would have to log mileage. The tax I pay for private fuel is almost as much as the tax I pay for the whole car!

They say this already. Payback rate to the company is 15p/mile for any private mileage fuel use, or you fill back up at your expense.

DaveI · 01-10-2007, 22:52

Think this is going to be the cheapest deal you'll get, should be between £2500 to £3000 off your taxable allowance depending on the original purchase price of the Mondeo??

Mines a couple of hundred quid under 5k as I get free private fuel.

Dr Zoidberg · 02-10-2007, 07:11

Quote:

Originally Posted by gadgetman

Normal place of work will be where there is a breakdown. Only going into the office now and again to collect parts, do paperwork etc.

So I should be able to satisfy both parts?

What ban would be considered sufficient to taxman? Gross misconduct? Extortunate payback rates?

If you are based at home and only use the car for work journeys to and from customer sites , and they are prepared to put it in writing that you aren't allowed to use it for personal use then you should be ok.

gadgetman · 02-10-2007, 21:41

Thanks Alex, I'll get asking when the boss is back in next week.

Moose · 03-10-2007, 10:12

Its a complex world regarding company vehicles and tax payable. I'll say no more

01-10-2007, 22:08	#1
gadgetman Go Gadget Octy! Join Date: Apr 2007 Posts: 3,400 Members Car: Thanks: 220 Thanked 117 Times in 110 Posts	Company car, and only using for work - tax issues? New firm give me a Mondy estate for a company car. However, I only want to use it soley for work, and do all my private stuff in the Octy - my expensive toy, will all the goodies. The firm pay for all fuel, and private mileage is clamed back at a rate to cover fuel and running costs (circa 15p/mile). So how can I get around the thieving taxman when I dont even want to use it for personal use at all? __________________ Lick the window of life Why not join the Briskoda Last.fm group?

01-10-2007, 22:18	#2
Dr Zoidberg Briskodian Join Date: Jun 2003 Location: On the back of an AA truck with a failed turbo Posts: 10,745 Members Car: Octavia II 2.0 TDi Elegance Thanks: 30 Thanked 194 Times in 145 Posts	Re: Company car, and only using for work - tax issues? You are required to pay tax on a vehicle provided by your employers unless A) You don't use it for private purposes AND B) you are not allowed to use it for private purposes. If your employers are prepared to put it in writing that you are specifically prohibited from using it for personal purposes then you shouldn't pay tax. There is existing case law to cover whether the drive to and from your office is private or business use , but if it's always returned to the company car park and you travel home in your car then you are pretty safe. <edit> Car benefit: prohibition of private use has this from an official source __________________ Alex "I laugh in the face of danger, then I hide until it goes away" www.drzoidberg.co.uk

01-10-2007, 22:30	#3
gadgetman Go Gadget Octy! Join Date: Apr 2007 Posts: 3,400 Members Car: Thanks: 220 Thanked 117 Times in 110 Posts	Re: Company car, and only using for work - tax issues? Meh, so should they call me in the office before a call-out that's private use? Mother *******. Well the prohibited use would be easy to ask my employer to provide. But do they have to go that far? Surely If I could proove I havent done any, even if it means logging every to, from & about turns??? __________________ Lick the window of life Why not join the Briskoda Last.fm group?

01-10-2007, 22:33	#4
Dr Zoidberg Briskodian Join Date: Jun 2003 Location: On the back of an AA truck with a failed turbo Posts: 10,745 Members Car: Octavia II 2.0 TDi Elegance Thanks: 30 Thanked 194 Times in 145 Posts	Re: Company car, and only using for work - tax issues? Nope, even if you never drive it but it's available for private use you still need to pay tax , and if your normal place of work is the office and you use it to commute you must pay. __________________ Alex "I laugh in the face of danger, then I hide until it goes away" www.drzoidberg.co.uk

01-10-2007, 22:38	#5
DaveI Briskodian Join Date: Apr 2005 Location: North East Posts: 1,054 Members Car: Seat Leon FR TDi Thanks: 52 Thanked 18 Times in 18 Posts	Re: Company car, and only using for work - tax issues? You could get the company to state that they don't pay for private fuel, this means you would have to log mileage. The tax I pay for private fuel is almost as much as the tax I pay for the whole car! __________________ 2007 Seat Leon FR TDi 170 Bluetooth / Convenience Pack / 18s / Rear Parking Sensors / Front Centre Arm Rest / Passenger Airbag Disconnect / Free Dealer Mats / Brodit Mount + Brodit Tom Tom One Active Holder Used to have an A5 Skoda Octavia 1.9 TDi Elegance Combi and Missing somewhere comfy to rest my right arm!

01-10-2007, 22:39	#6
gadgetman Go Gadget Octy! Join Date: Apr 2007 Posts: 3,400 Members Car: Thanks: 220 Thanked 117 Times in 110 Posts	Re: Company car, and only using for work - tax issues? Normal place of work will be where there is a breakdown. Only going into the office now and again to collect parts, do paperwork etc. So I should be able to satisfy both parts? What ban would be considered sufficient to taxman? Gross misconduct? Extortunate payback rates? __________________ Lick the window of life Why not join the Briskoda Last.fm group?

01-10-2007, 22:52	#8
DaveI Briskodian Join Date: Apr 2005 Location: North East Posts: 1,054 Members Car: Seat Leon FR TDi Thanks: 52 Thanked 18 Times in 18 Posts	Re: Company car, and only using for work - tax issues? Think this is going to be the cheapest deal you'll get, should be between £2500 to £3000 off your taxable allowance depending on the original purchase price of the Mondeo?? Mines a couple of hundred quid under 5k as I get free private fuel. __________________ 2007 Seat Leon FR TDi 170 Bluetooth / Convenience Pack / 18s / Rear Parking Sensors / Front Centre Arm Rest / Passenger Airbag Disconnect / Free Dealer Mats / Brodit Mount + Brodit Tom Tom One Active Holder Used to have an A5 Skoda Octavia 1.9 TDi Elegance Combi and Missing somewhere comfy to rest my right arm!

02-10-2007, 21:41	#10
gadgetman Go Gadget Octy! Join Date: Apr 2007 Posts: 3,400 Members Car: Thanks: 220 Thanked 117 Times in 110 Posts	Re: Company car, and only using for work - tax issues? Thanks Alex, I'll get asking when the boss is back in next week. __________________ Lick the window of life Why not join the Briskoda Last.fm group?

03-10-2007, 10:12	#11
Moose Briskodian Join Date: Jan 2005 Location: I'm a monkey from outer space, woooooooo ahhhhhhhhh hehe hooohaa Posts: 4,938 Members Car: None Thanks: 0 Thanked 9 Times in 9 Posts	Re: Company car, and only using for work - tax issues? Its a complex world regarding company vehicles and tax payable. I'll say no more __________________ Sunlight Silver MX-5 1.8 Sport

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