Car allowance and actually having a car
Discussion
Morning all
Bit of a random one, we as a business give BD / Sales/ Managers a car or car allowance, this has been the case for a good few years, I take the money and came out the car scheme about a year ago, colleagues got told the car scheme as we knew it was ending and could have the car allowance or go into a hire car until the new all electric scheme launches later this year.
Spoke to a colleague yesterday who has decided not to get a car as he "doesn't" need one as works from home all week and if he does go out can use his wife's, so effectively has a £7200 PA pay rise, he's done this for 3 months now and no one has asked any questions and gets the money as you'd expect.
Bit awkward for me to ask HR now if its ok if I can just use the wife's as don't want to be that bloke that ruins it for everyone (if others are doing this too).
Anyone else just take the money as a perk and not got a car? my old place you had to provide proof of insurance for business every 12 months to get the money, just wandering if I sack my car off could anyone see any comeback? (as long as I can still perform my role obviously)
Bit of a random one, we as a business give BD / Sales/ Managers a car or car allowance, this has been the case for a good few years, I take the money and came out the car scheme about a year ago, colleagues got told the car scheme as we knew it was ending and could have the car allowance or go into a hire car until the new all electric scheme launches later this year.
Spoke to a colleague yesterday who has decided not to get a car as he "doesn't" need one as works from home all week and if he does go out can use his wife's, so effectively has a £7200 PA pay rise, he's done this for 3 months now and no one has asked any questions and gets the money as you'd expect.
Bit awkward for me to ask HR now if its ok if I can just use the wife's as don't want to be that bloke that ruins it for everyone (if others are doing this too).
Anyone else just take the money as a perk and not got a car? my old place you had to provide proof of insurance for business every 12 months to get the money, just wandering if I sack my car off could anyone see any comeback? (as long as I can still perform my role obviously)
The business gives you an allowance to run a car
Whether that car is yours or shared with your wife is not really relevant.
As long as you have an appropriate car available for whenever you need to use one, there shouldn’t be an issue.
I wouldn’t shout it from the rooftops, but I wouldn’t be afraid of not having a ‘dedicated’ business car.
Whether that car is yours or shared with your wife is not really relevant.
As long as you have an appropriate car available for whenever you need to use one, there shouldn’t be an issue.
I wouldn’t shout it from the rooftops, but I wouldn’t be afraid of not having a ‘dedicated’ business car.
full time WFH here too and get a car allowance due to banding - we have a company car policy and it mentions in there what the employees obligations are, and whether they need business usage - maybe have a look and see if your employer has something similar?
I know in my case car allowance is basically 8k they don't have to pay company pension contributions and probably some other stuff on.
I know in my case car allowance is basically 8k they don't have to pay company pension contributions and probably some other stuff on.
In the past I have worked for a company when absolute evidence of the car, MOT where applicable and business insurance had to be sent through every year or the car allowance would not be paid. At present I could probably get away with it as I could manage by public transport (I only really go to two places and those could both be done by bus/train/tube, I currently do car/train/tube) but since we do contract work that can change really quickly
LastPoster said:
In the past I have worked for a company when absolute evidence of the car, MOT where applicable and business insurance had to be sent through every year or the car allowance would not be paid.
In my last big company job we had to do that. Also the car couldn't be more than 6yrs old and had to be 4/5 door. There were people using cars for work that certainly didn't fit those criteria.However while I had company cars my wife's car was always fully in my name. Insurer said for a couple they dom't care who the main user is. So I could have used "her" car details if I'd needed to.
We had some additional rules as well. 'Evidence' company was four years 4/5 doors etc, current has a 'No older than 6 years and no more than 120,000 miles policy' but no need to prove it. My car is a 67 plate so I'm taking it as no older than 6 years means not 7, so I will be ok until 6 years and 364 days. 
Re insurance; with a policy I had where the family car was registered in my name and the policy was in my name as well using my NCD, the insurance company just wanted the main driver to be nominated as such (i.e. my wife) but didn't care or add any costs either.
Re insurance; with a policy I had where the family car was registered in my name and the policy was in my name as well using my NCD, the insurance company just wanted the main driver to be nominated as such (i.e. my wife) but didn't care or add any costs either.
I think it can also depend on whether a car is actually used by the employee to see clients etc.
If no business use per se then I doubt any company will be that interested in what you do about getting about and the allowance just becomes additional pay.
My old company used to give an allowance in the form of a monthly lease quantum which we could add to if needs be and no restriction on what we could buy.
They then decided to get rid of the company car scheme in totality but the allowance remained.
Any business use we were then given back the fixed mile allowance if claimed.
If no business use per se then I doubt any company will be that interested in what you do about getting about and the allowance just becomes additional pay.
My old company used to give an allowance in the form of a monthly lease quantum which we could add to if needs be and no restriction on what we could buy.
They then decided to get rid of the company car scheme in totality but the allowance remained.
Any business use we were then given back the fixed mile allowance if claimed.
Have a chat with HR and see what the company policy is.
I have worked at multiple companies through the years some with policies and some without.
A large corporate in central London gave everyone of a certain grade a car allowance, if you worked in town you used it for your tube ticket if you were outside zone 3 you bought a car.
Current company don't care what you buy but you have to send proof of insurance, tax and an annual service in every year for their duty of care. As I mostly work from home I have a C63 which HR did pay particular interest in but I said I would always park it round the corner when I visit customers and if anyone complained I would change it. Had it over 2 years now and not heard anything more.
Mate works for a company where they have a g per km CO2, age and milage restrictions.
I have worked at multiple companies through the years some with policies and some without.
A large corporate in central London gave everyone of a certain grade a car allowance, if you worked in town you used it for your tube ticket if you were outside zone 3 you bought a car.
Current company don't care what you buy but you have to send proof of insurance, tax and an annual service in every year for their duty of care. As I mostly work from home I have a C63 which HR did pay particular interest in but I said I would always park it round the corner when I visit customers and if anyone complained I would change it. Had it over 2 years now and not heard anything more.
Mate works for a company where they have a g per km CO2, age and milage restrictions.
As a Head of Fleet for a large corporation i can tell you that most companies now class the cash allowance as a mobility allowance. This means the cash is used for business travel, be it by car, bus or train and irrespective of who owns the car.
The priority here is your ability to travel and have sufficient access to a vehicle.
One point to raise, some policies specify the type of vehicle (no convertibles / Kit cars / must seat 4 adults) so make sure you don't fall foul of this rule.
As for using your wife's car, as long as it is insured for business use then you shouldn't have an issue.
The priority here is your ability to travel and have sufficient access to a vehicle.
One point to raise, some policies specify the type of vehicle (no convertibles / Kit cars / must seat 4 adults) so make sure you don't fall foul of this rule.
As for using your wife's car, as long as it is insured for business use then you shouldn't have an issue.
Hammond73 said:
As a Head of Fleet for a large corporation i can tell you that most companies now class the cash allowance as a mobility allowance. This means the cash is used for business travel, be it by car, bus or train and irrespective of who owns the car.
Business travel is a legitimate expense so not liable to BIK. How are you reconciling that you are asking employees to pay for business travel out of taxed income? I get a car allowance but any business travel using public transport can be claimed on expenses (using a company credit card to pay) and company policy is to use public transport whenever possible.Muzzer79 said:
The business gives you an allowance to run a car
Whether that car is yours or shared with your wife is not really relevant.
As long as you have an appropriate car available for whenever you need to use one, there shouldn’t be an issue.
I wouldn’t shout it from the rooftops, but I wouldn’t be afraid of not having a ‘dedicated’ business car.
Agreed. At my place a car allowance basically means you’re expected to be places. Whether that car is yours or shared with your wife is not really relevant.
As long as you have an appropriate car available for whenever you need to use one, there shouldn’t be an issue.
I wouldn’t shout it from the rooftops, but I wouldn’t be afraid of not having a ‘dedicated’ business car.
Your car, wife’s car, train, taxi - nobody really cares do long as you’re where you need to be to get the job done.
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