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Company Car Or Buy Your Own


Cherokee2015
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Not a towcar question as such but still related to cars!

 

What are the pros and cons of having a fully financed company car against providing your own car and charging for fuel etc for work use.

 

Have had company cars before but never had the provide your own option. Not one for using the company for private use, maybe just the odd trip here and there plus commuting.

 

Any thoughts appreciated.

Edited by WispMan

Janet and Jason xxx
Jeep Cherokee Limited 2. 0CRD (2015) towing a 2016 Swift Challenger 530 Alde

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If you have a company car, one way or another you're paying for it, mainly to the taxman so why not use it for private use, my wife is supplied with a company car, we've paid quite a lot extra and upgraded so we have a decent sized towcar, its renewed every 3 years, totally maintained, taxed and insured, unless you get a really really good mileage reimbursement I cannot see the advantage of providing, maintaining, taxing, insuring and the depreciation factor on using your own car.

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Depends whether you get a decent recompense for running your own car.

One assumes, you've got to tax, insure, maintain and provide a car in the event of a breakdown or accident. even replacing tyres can be expensive if you have to do it often. You have to decide if the payment (which is taxed) covers all this plus the aggro that you've got sorting it all out yourself.

It also depends on how many miles you are doing on your behalf or the company's. Racking up 1000's of miles on your car is a lot different from doing it on someone else's and can quickly devalue the car if you are doing more than the average. Do you presently get fuel, or do you get re-imbursed as that might be a consideration as well

 

When I was employed and was doing 35k miles a year (two services and a set of tyres at £600 every year) it was far better that the company took all responsibility for it. They also sorted out a replacement when someone drove into it whilst it was parked.

 

It's not just a financial consideration, peace of mind and someone else sorting it out was worth a lot to me. If you do low mileage and you use it mainly for your own travel then that might skew it differently. You might have to pay tax on the car, but that's it - no unforeseen breakdowns or costs to be factored in. A £1000 bill out of the blue can really shock the system, especially if you need the car to do your job - you need to provide a replacement whilst yours is being fixed.

Edited by matelodave

2018 S-Max Titanium 2. 0 Tdci (177. 54bhp,180ps,132kw) Powershift + 2015 Unicorn III Cadz, Ventura Marlin porch awning

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Yes, that's what we thought too - In the past he's had company cars where they aren't bothered what mileage you do and don't charge, vans which come under different rules and the last one which was a car but they charged you for personal mileage. In the past we only had the company car as a towcar, but then suddenly found ourselves without a vehicle at all when the job ended so we've always stuck to keeping our own car as the main towcar. Think we'd still like to do this, just wondered whether it was at all worth it to have your own - not got any details of recompense at the moment, but I would think it would be a fairly high mileage.

Janet and Jason xxx
Jeep Cherokee Limited 2. 0CRD (2015) towing a 2016 Swift Challenger 530 Alde

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If you go down the company car route, make sure that their insurance covers towing YOUR caravan.

Generally, company car is best especially if you have a choice of vehicle. You will have to pay tax, but if company also charge for private use (apart from fuel) then do your sums VERY carefully before deciding.

When using your own car for work purposes, you should inform your insurance, especially if you carry any company owned materials of any kind.

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I have a company car, and can use it for personal use, I pay so much per mile for personal use, around 12p at the moment. It is far cheaper than running a separate car. I only pay out of my pocket for tolls, screenwash etc and they are reimbursed with my expenses. A few weeks ago I had a puncture that needed a new tyre, no problem did not cost me a penny, this is the advantage of a company car. Yes you get taxed for it, so you may as well use it, at £12 for 100 miles it is not expensive. Only downer is having to pay for factory fit towbar.

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Had company cars for years until a couple of years ago. Depends what you want tbh, as there are some cracking pcp type deals out there. If you go personal and go for a pcp, just think of the car as a company one, except that it will be yours for the duration of the pcp etc. just watch out for the miles you do, as if you do silly amounts of miles the company car is prob the best.

It works for me, as don't forget that if you get a small amount per mile for business use (I get 19p/mile), you can claim the residual against the 45p/mile the government allow. Makes a big difference.

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as don't forget that if you get a small amount per mile for business use (I get 19p/mile), you can claim the residual against the 45p/mile the government allow. Makes a big difference.

Is the 45p per mile total journey ie there and back or just one way?

 

A to B =20 mlles

= 40x45 = £18

Lunar Zenith Citroen C5 2. 2 HDI Citroen Picasso 1. 6 HDI. , Vauxhall Vectra Design 150 bhp Soon to be, 2014 Sprite Major 4 sr. With ATC.
The Internet has had no effect on my life whatsoever. com

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Total work mileage wigleywoo - there & back!!

2005 Bessacarr Cameo 635 gl & 2005 Nissan Terrano II SVE Di 3. 0l

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I used to have a company car, then switched out of the system. There are two parts, the car and fuel. I found that with an allowance I was able to make it cost difference neutral and got to choose the car of my choosing. Where I saw a benefit was at the end, the value of the car was equity towards the next. I always put money in the bank every month to pay for loan, insurance, maintenance. One loan paid off keep saving the same, that way your building up more equity. Eventually you will get to a positive cash position. Last time I stopped I upgraded to a new discovery 4 so that proves that if you manage it correctly it can work for you.

 

If your lucky enough to get a fuel card then then you will be taxed on what you use but you can claim tax on 40p per mile back from the tax man.

 

Hope it works out for you.

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I had a company car (which I could tow with) from 1986 until I retired in 2008.

 

Not sure about the financial comparison but for me the peace of mind of not having to pay ANY bills on the car was priceless.

 

I was perhaps lucky but I had Vauxhalls (initially a Carlton, followed by a Calibra and then 3 Vectras)...when I saw the retirement door 4 years in the distance I got an Audi A4 Cabriolet 2. 5TDi which I am still driving.

 

No real problems with any of them. .. but if any had been privately owned I'd be fretting about any future hidden breakdown etc costs!!!

 

HTH

 

G.

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I got a company car last year. I can use it for as much personal mileage as I like with no charge from the company. The boss even paid for my towbar! I pay for my own fuel, and claim back what I use for business miles. So my only expense is fuel and BIK tax.

 

I got a Nissan Navara, because it's a commercial the BIK tax is only £50 month, far less than any large engined car or 4x4, it's an excellent tow car, and very practical.

<p>2007 Sterling Cruach Cuillin & 2016 Volvo XC60 SE D4 190

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Don't forget you will pay Benefit in Kind tax as it is considered a perk by HMRC.

 

If you are given an allowance as part of your salary to cover the cost of a company car, you can, dependent on your company policy pay extra to get a better spec, or even a different car.

 

If you pay the extra in an annual lump sum, this is deducted off the P11D value (the figure HMRC use to calculate BIK tax) before they calculate the BIK, this is called a Capital Contribution.

 

If the additional amount is paid monthly out of your salary, this is called a Personal Use Contribution (PUC), this amount if it is either equal to, or greater than your BIK tax will offset the BIK, if it is less it will still reduce the amount of BIK you pay.

 

As BIK is directly linked to the car emissions, many companies will want to keep the emissions below a certain level as they get tax breaks for being "green".

 

If you want to understand more about BIK use the HMRC website and search for Company Cars.

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Everyone has been "by the book" with their advice - good on you guys, you squeaky clean bunch!!

 

First off, it really depends on your business v personal mileage AND your total mileage. The tax man might sting you for "benefit in kind" but does this outweight your "peace of mind" for having a fully maintained motor? Only you can work out how you feel.

 

Secondly, I'm not for one moment suggesting that anyone is anything less than 100% honest regarding their personal mileage, but if driving to Tesco to do your grocery shopping involves buying a stamp for a business letter - is it still personal mileage?

 

As mentioned already there are various different benefits (and penalties) so it's best to talk to your empolyer as to how they "present" their company cars to the tax man. If they've given you the option either way I would guess they're clued up in helping you decide.

2007 Bailey Pageant Burgundy S6. 2009 Insignia Elite 2. 0 petrol turbo 4x4 - pulls like a train but guzzles juice!

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Done both and a company car still wins hands down if you get to choose what it is, I had an Omega Elite with a fuel card, They taxed me on it so I used it, never felt a moments guilt filling it up or having it maintained and serviced, It was a great car only let down by the Vauxhall we don't care service providers, My wife had a Mitsubishi Gallant and the difference in customer care tempted me to the dark side and have had Toyota since getting rid of the Omega. The customer service that I have had since buying my first Toyota has been so good that I would be loathed to change to anything else, having said that the Mitsubishi dealer took some beating, When we were looking for a new car they gave us the keys to the Gallant and said "take it for the weekend and see what it's like to live with" we had it for 8 years without a moments trouble, if they still made it we would have still been driving one.

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. ..When we were looking for a new car they gave us the keys to the Gallant and said "take it for the weekend and see what it's like to live with" we had it for 8 years without a moments trouble. ..

Sorry to deviate from topic but that's worth it! - you lucky devil!! Did they give you free petrol for your 8 year "weekend" too? :P

2007 Bailey Pageant Burgundy S6. 2009 Insignia Elite 2. 0 petrol turbo 4x4 - pulls like a train but guzzles juice!

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Re: Tax man and mileage rate. .. Example: Company pay you 25p/mile for business use you can reclaim 20p/mile off taxman . .. and that reduces your tax bill. so 20p*20% = 4p or 8p if a higher rate taxpayer @40%.... Not quite as good as it first sounds. ..

 

Get the company to pay more per mile or a lot more to provide you with a company car.

2012 Bailey Pegasus 2 Rimini towed by 2019 Ford Galaxy Titanium X, 2.0 EcoBlue, 8 speed auto.

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My son-in-law has just done this exercise. He is a partner in a very large firm of solicitors and if anyone does his homework on this sort of expense it is him. He does 20k a year travelling between offices and worked out it was cheaper to buy his own car. He has just bought the 3 year old rented car off the rental company for a good figure and intends to keep it going. Not sure how much he is saving but knowing him, a lot!

Sadly no van anymore but 35 years was a good run

John

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As said the biggest problem with company cars is insurance s you are required to have the trailer covered under the vehicles insurance. The cars insurances company would need to be informed or you could see yourself in court facing claims for any damage you cause with the caravan.

 

Dave

Jeep Commander 3. 0 V6 CRD

Isuzu D- Max Utah Auto

Elddis Crusader Storm 2000 Kgs, Unipart Royal Atlas Mover .

 

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Company cars must be ok, servicing etc all sorted :)

I know when we had a works meeting a couple of weeks ago those with company cars weren't too impressed when pricewaterhousecoopers asked them for the keys, I don't think they were too impressed when they also asked for their fuel cards & their mobile phones either :ph34r:

Paul B

. .......Mondeo Estate & Elddis Avanté 505 (Tobago)

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There probably as many Company Car Schemes as there are companies, they are all variation on a theme, however the nuances of the one you are being offered needs to explored, to ensure it is the right decision for you and your circumstances not just now but in the future (the future being the end date of your contract and beyond).

 

Once you have entered in to an agreement for a company car, it is financially expensive to get out of it before the contact has run full term.

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The better halfs company car scheme allows us unlimited mileage, car only breakdown cover, she pays for business/own mileage and is refunded for work mileage at not a brilliant rate, i am a named driver. Permission to drag the caravan anywhere in uk with Europe cover provided when requested. She's entitled to a Ford Focus/ Vauxhall Astra but we pay extra and upgraded to the Antara, we wanted a Kuga but that dropped off the list when we had to make our decision.

All in all the best deal for us.

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Sorry to deviate from topic but that's worth it! - you lucky devil!! Did they give you free petrol for your 8 year "weekend" too? :P

I used to have free fuel for years. That was before the taxman got hold of it!!!

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The company that I work for gave those entitled to a company car the option to either have the company car (from those they could select within the company specified budget) or have an interest free loan and claim mileage.

 

Most managers selected the latter. That was a few years ago, and although the scheme did not change, after 3 years they all chose a company car.

 

You should also note that if you are based at a specific workplace you can not claim tax-exempt mileage payments to and from there, and if a journey is made to or from home directly to a site then you are required to deduct the mileage to (and on a round trip - from) the regular workplace from the journey.

 

e. g; you are required to do an early start at another branch sixteen miles from home and you return straight home from there. Your regular place of work is six miles away, so the claim can only be for twenty miles.

Edited by Trevor Marron

Has the revolution finally begun?

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Thanks everyone lots to think about :unsure:

Janet and Jason xxx
Jeep Cherokee Limited 2. 0CRD (2015) towing a 2016 Swift Challenger 530 Alde

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