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What are the rules/laws for company cars?
4 Answers
I am attending an interview in the near future where a company car is part of the deal. I have never had a company car before.
Will the company pay for tax,insurance and mot or am i liable? Or is there no 'rule' as such its just individual company policy?
Will the company pay for tax,insurance and mot or am i liable? Or is there no 'rule' as such its just individual company policy?
Answers
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This is a very complex question.
Most companies will provide the vehicle and then (road) tax it, insure it and pay for maintenance.
Some companies will give you a petrol card. Some companies will allow you to have personal as well as company mileage (this is taxable so beware).
Some companies will give you a mileage allowance to take care of the petrol costs (often 40p per mile).
You should be aware that driving to and from your main workplace / office is classed as private not company mileage.
There are a variety of tax issues and it is dependent on the cost price of the car (retail price not discounted price) and the CO2 emissions.
If you have a choice go for a cheaper diesel car. Do not be tempted to get things like Sat Nav as an extra as you will be paying tax on this.
A lot more details here: http://www.hmrc.gov.uk/cars/
Most companies will provide the vehicle and then (road) tax it, insure it and pay for maintenance.
Some companies will give you a petrol card. Some companies will allow you to have personal as well as company mileage (this is taxable so beware).
Some companies will give you a mileage allowance to take care of the petrol costs (often 40p per mile).
You should be aware that driving to and from your main workplace / office is classed as private not company mileage.
There are a variety of tax issues and it is dependent on the cost price of the car (retail price not discounted price) and the CO2 emissions.
If you have a choice go for a cheaper diesel car. Do not be tempted to get things like Sat Nav as an extra as you will be paying tax on this.
A lot more details here: http://www.hmrc.gov.uk/cars/
I have a company car which is classed as a job needs car as opposed to a perk.
My company pays for tax, MOT, Insurance and all maintenance.
I pay for my personal miles but I claim business mileage back at 12p per mile - 40p pence per mile is normally the level of mileage paid back when you are using your own personal car as it needs to cover wear and tear too (whereas on a company car the company pays for this).
Oneeyedvic is right in that the commute to work and back is classed as personal mileage.
Your personal allowance on your tax will decrease so you will pay more tax as you have a company car.
To give you an idea, my car is worth 18K and has emissions of 148 and I pay about �60 per month tax on top of my normal tax for having the car.
Hope this helps.
My company pays for tax, MOT, Insurance and all maintenance.
I pay for my personal miles but I claim business mileage back at 12p per mile - 40p pence per mile is normally the level of mileage paid back when you are using your own personal car as it needs to cover wear and tear too (whereas on a company car the company pays for this).
Oneeyedvic is right in that the commute to work and back is classed as personal mileage.
Your personal allowance on your tax will decrease so you will pay more tax as you have a company car.
To give you an idea, my car is worth 18K and has emissions of 148 and I pay about �60 per month tax on top of my normal tax for having the car.
Hope this helps.
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