company car tax question
Discussion
I've just been offered an internal move to a different department. The job doesn't come with a pay rise (it's a move to change career direction, so I knew this when I applied) but it does come with a company car and business mileage fuel card.
I get the tax implications of the car itself, it'll be about £1k a year depending which s
tbox they give me, but what I can't fathom is the tax on personal mileage - how does this actually work?! I get the feeling I'm going to be worse off financially compared to my current car (£150 insurance, £240 tax, ~£300 fuel, £40 mot, all servicing done by me), but keeping my car isn't an option, so I'm hoping to go back ti my new boss with some figures to ask their opinion on upping the basic to cover the loss.
Barring the very occasional personal journey, the only time I will use it is to travel to my 'permanent place of work'. We have another car that does everything we need as a family. The daily commute is only about 9 miles in total.
T'internet isn't throwing up anything of any use, does anyone know how I can work out the tax cost for, let's say, 300 personal miles a month?! Car will be sub-130g Co2 and Vauxhall, so an Astra/insignia/Mokka most likely.
I get the tax implications of the car itself, it'll be about £1k a year depending which s
tbox they give me, but what I can't fathom is the tax on personal mileage - how does this actually work?! I get the feeling I'm going to be worse off financially compared to my current car (£150 insurance, £240 tax, ~£300 fuel, £40 mot, all servicing done by me), but keeping my car isn't an option, so I'm hoping to go back ti my new boss with some figures to ask their opinion on upping the basic to cover the loss.Barring the very occasional personal journey, the only time I will use it is to travel to my 'permanent place of work'. We have another car that does everything we need as a family. The daily commute is only about 9 miles in total.
T'internet isn't throwing up anything of any use, does anyone know how I can work out the tax cost for, let's say, 300 personal miles a month?! Car will be sub-130g Co2 and Vauxhall, so an Astra/insignia/Mokka most likely.
On that mileage, do not take the option of free fuel. It'll cost you in BIK far more than the fuel would if you bought it yourself. Companies can insist you take a company car but I've never known a firm insist on you taking the fuel card.
Pay your own fuel and claim back business mileage (not to & from work) from the firm and standard HMRC rates (about 9-12p a mile depending on fuel type and engine size)
Pay your own fuel and claim back business mileage (not to & from work) from the firm and standard HMRC rates (about 9-12p a mile depending on fuel type and engine size)
The fuel card should work by you logging all your trips and mileage. The easiest way I found was simply to log the start mileage at the period and the end and to log all business trips. The difference is personal mileage. The card will log the amounts fuel purchase fans for how much and you will lay a Pro rats amount. If it allows then by at Sainsburys or similar and use a nectar card.
If you do 3 fill ups in a charge period the price per litre and the number of litres will be logged. For the same period you will do say 2000 miles of which 1700 is business. The 300 'price' is calculated by all the data collected.
This normally feeds automatically to your payroll department and a deduction is made.
This normally feeds automatically to your payroll department and a deduction is made.
Edited by edc on Thursday 6th October 08:37
Think I've sorted it today - clerical error!!
My contract was wrong to begin with and I'm actually home based as I first thought I would be. Don't plan on working at home though (my 3 year old would put pay to any work!!) so coming into the office won't mean coming into my permanent place of work. Any actual personal miles will be done in the family donkey, so no tax for me!
My contract was wrong to begin with and I'm actually home based as I first thought I would be. Don't plan on working at home though (my 3 year old would put pay to any work!!) so coming into the office won't mean coming into my permanent place of work. Any actual personal miles will be done in the family donkey, so no tax for me!
Eric Mc said:
Are you hoping to claim for the journey from your home to the office you actually work in?
No. Will be out and about 2 or 3 days a week and working from home the rest. Realistically, I'll get a shed load more done if I work somewhere away from my 3 year old and the "daddy, daddy, daddy" that is inevitable, so will go to the HQ most of the time. My concern was that by going to the HQ, I would be charged for 'personal' mileage.Just writing 'home' on the contract does not, from HMRC's perspective, either make Home your permanent place of work, nor does it preclude HQ from also being a permanent place of work.
The upshot can be that driving from home to HQ will be seen by HMRC as normal commuting.
What is the requirement of your job that needs you to be home based?
Why do you go to HQ?
The upshot can be that driving from home to HQ will be seen by HMRC as normal commuting.
What is the requirement of your job that needs you to be home based?
Why do you go to HQ?
wsurfa said:
Just writing 'home' on the contract does not, from HMRC's perspective, either make Home your permanent place of work, nor does it preclude HQ from also being a permanent place of work.
The upshot can be that driving from home to HQ will be seen by HMRC as normal commuting.
What is the requirement of your job that needs you to be home based?
Why do you go to HQ?
Without going into specifics, I cover a number of retail stores (around 100 from London, south and, oddly, Ireland?!) looking at stock loss and the financial impact etc. I have a schedule of stores to visit at least once (likely, 3 times) over the year so have 'no base' per se. That is to say, my base is whatever store I need to visit that day. If I don't need to visit or I need to do reporting, I'd need somewhere to do it. Could be my local store, could be at home, could be at HQ, could be wherever I want/need it to be.The upshot can be that driving from home to HQ will be seen by HMRC as normal commuting.
What is the requirement of your job that needs you to be home based?
Why do you go to HQ?
My desire to use HQ as somewhere ti work is to avoid mixing work and home too much. My lad is too young at the moment ti understand that i can't take him to the park just because I'm at home and i don't have the space at home to completely detatch myself (I.e. An office).
There are three others across the country who do the same as me in different regions who are all home based.
Jonboy_t said:
Without going into specifics, I cover a number of retail stores (around 100 from London, south and, oddly, Ireland?!) looking at stock loss and the financial impact etc. I have a schedule of stores to visit at least once (likely, 3 times) over the year so have 'no base' per se. That is to say, my base is whatever store I need to visit that day. If I don't need to visit or I need to do reporting, I'd need somewhere to do it. Could be my local store, could be at home, could be at HQ, could be wherever I want/need it to be.
My desire to use HQ as somewhere ti work is to avoid mixing work and home too much. My lad is too young at the moment ti understand that i can't take him to the park just because I'm at home and i don't have the space at home to completely detatch myself (I.e. An office).
There are three others across the country who do the same as me in different regions who are all home based.
The key point being your 'regional' role requiring you to be based within that region, and that there is no pattern, requirement or significant travel to HQ.My desire to use HQ as somewhere ti work is to avoid mixing work and home too much. My lad is too young at the moment ti understand that i can't take him to the park just because I'm at home and i don't have the space at home to completely detatch myself (I.e. An office).
There are three others across the country who do the same as me in different regions who are all home based.
I've had an amount of 'fun' with HMRC in the past over this stuff
Eric Mc said:
Is their a clause in your employment contract stating categorically that you MUST work from home - and that you have no choice in the matter?
No, but neither is there one saying where I do work from - 'field based' is the terminology used. It's implied (that wonderful term that holds no water!) that I work from home and this has been backed up by my new boss.There's another 'me' based in Aberdeen, we're on identical contracts. My position is no different, therefore my 'base' is no different. I'm not taxed based on the fact that I happen to live closer to our HQ than my oppo in another region.
edc said:
The fuel card should work by you logging all your trips and mileage. The easiest way I found was simply to log the start mileage at the period and the end and to log all business trips. The difference is personal mileage. The card will log the amounts fuel purchase fans for how much and you will lay a Pro rats amount. If it allows then by at Sainsburys or similar and use a nectar card.
It can be done pro-rata, but in my experience companies use HMRC's Advisory Fuel rates.Gassing Station | Jobs & Employment Matters | Top of Page | What's New | My Stuff