Withdrawal of employment benefits (company car)

[rugbywidow15]

I have worked for the same company for the past 4 years. On accepting the role, I was offered a car allowance of £350, before tax or a company car. I accepted the company car as my role involves covering a very large area, on average I do around 1500 business miles a month. My car has done 165,000 miles and desperatley needs updating. I have just recieved an email from work, informing me that they would like to change the t&c of my employment and remove my company car. They have offered me an interest free loan and will pay me the £350 allowance instead which works out I will take home around £270 after tax.

Have been looking at cars to buy and the best deal I can find is

£3300 06 Fiat Punto
£1000 for insurance, car tax , breakdown, MOT Tyres & Servicing a year, so need to £4300 loan would be needed
£358 per month for 12 months
£270 paid for car allowance
-£88 more to cover

So, questions:
- what period of consultation must my employer undertake over any proposed changes to T and Cs, I have been given until 30th Jan to respond?
- is my employer obligated to replace my car, as per my terms and conditions, can I refuse the changes?
- is my employer obligated to compensate me for the loss of my benefit if my job hasn't otherwise changed, I am still expected to cover the same miles per year?
- I also need to consider the depreciation on a car having 20000 miles added to it per annum, how much would this be?

My line manager has said that I should argue for compensation for removing the term from my contract but unsure if this would be lawful??

I am really struggling to see how this change is of any benefit to me and wondered if anyone has any advice on what I could say to my employers?

Many thanks.

[factor-fiction]

The company car provision policy problem included a term about being able to withdraw the car and pay a cash alternative. I'm not sure about notice- that may be covered by the policy; if not then your the normal notice period of your contract will apply.

I'm sure your employer will pay mileage rates but these are usually pretty poor value now.

The employer can withdraw the benefit but it would be interesting to see what would happen if you said you couldn't afford to run a car so you wouldn't be buying one.

On the plus side, you'll pay less income tax overall, I expect.

Buildersmate will probably be able to advise if he sees this.

[bednobs]

plus you will have a car at the end of it which you don't have now

[bednobs]

plus, do you have to take it over 12 months? you could use the money to get one of those personal plans, and get a new car (where you either pay a lump sum at the end or give the car back)
i just picked up my new car (a mercedes a class) for considerably less per month (over 3 years) than you are going to be paying for a punto

[buildersmate]

The change doesn't seem to be of benefit to you.
Unless it is a condition of your employment that you provide your employer with a car suitable for business use (unlikely), why not simply decline to provide your employer with the car and suggest that they hire a car for your necessary business milage on each and every occasion? Should focus their minds a bit.

[rugbywidow15]

Thanks for your responses. It is a condition of my role that I have access to a car for business use and have to submit copies of insurance etc every 12 months. It used to be a stipulation that it was an estate car but that doesn't seem to be the case now.

I have looked into buying a new car and paying for it over 3 years but the garages I visited at the weekend said that their schemes wouldn't apply to me as my mileage is just to high! Which is why I was looking at slightly older 2nd hand option.

I understand that the most I can borrow interest free from my employer is £5000 in any one year and would like to pay this back as quickly as possible.

Basically my company bought a fleet of cars and had them all branded up in 2004 and they all need replacing. One by one as people have left cars have been sold and now there are 7 employees left with an aging company car. From the wording of the email, I get the impression that I don't really have a choice apart from the car allowance. My colleagues have all gone back asking for a lease car and I will wait and see what happens with this but this wasn't given as an option. Our mileage is paid at 12p a mile which doesn't come anywhere near to covering my fuel bill.

Thanks again and I will let you know how I get on.

[factor-fiction]

I can see them paying you 12p a mile to cover fuel costs in a company car but I'd be very surprised if they will only pay 12p a mile if you use your own car.
Maybe it's time to look for a new job.

[buildersmate]

At 12p per mile, one has to have a car that does over 50 miles per gallon to just cover running (fuel, oil, tyre wear) costs.
I'd be hunting for a new job too.

[meglet]

I get paid 11p per mile but you can claim back the difference (i.e. 40p for 1,000 and 25p thereafter) from the taxman at the end of the financial year. It could add up to quite a but with your mileage so you could factor that in too.