News1 min ago
Company cars and opt out ...HELP!!!!
Ok, well, here goes. I work for a company called *** UK ltd, a subsidiary of our parent German company *** AG ltd.
The issue is around company cars. I’ve trawled the net to try and find a specific answer but have found nothing maybe some one can help me out
At the moment I dive a company car. All my other colleagues have the same benefit. There is also a opt out system were *** UK pay a fixed sum of £390pcm (taxable) and the employees buy their own car and claim mileage at the government standard rates.
Question?
We have had a email from our UK office stating that the UK company is to follow a German directive stating that we are to loose the choice of cars and a ford focus estate will be provided. Also that the current opt out system will no longer apply as is not available to German employees as you can see from the segment of the email I received below.
In april 2013 I planned to opt out of the car system and buy my own car. Five of my colleagues have already opted out before the new rules came in and as you can see from the email they can stay as they are
Can I be forced under law to accept the new company car as it is classed as a benefit in kind? And be forced to pay tax on this benefit?
Secondly, can they have the opt out system for some equal employees and not for others.
If I declined the new car, (if I can) and buy my own off my own back are they under law to pay the £390pcm to me as they do the others.
Is there a legal president or legal case study stating that this would it be classed as being disadvantaged or discriminated as the opt out is not open to me and yet is to others of equal employment
Segment of email
Regarding company vehicles as previously stated, *** UK is to
follow a common *** Europe policy as directed by *** AG.The opt out
scheme does not exist under *** AG rules but so far, we have received no instructions regarding the present opt out scheme .As we understand it, at the moment those people that have opted out can stay as they are.
Hope you can help me with this
The issue is around company cars. I’ve trawled the net to try and find a specific answer but have found nothing maybe some one can help me out
At the moment I dive a company car. All my other colleagues have the same benefit. There is also a opt out system were *** UK pay a fixed sum of £390pcm (taxable) and the employees buy their own car and claim mileage at the government standard rates.
Question?
We have had a email from our UK office stating that the UK company is to follow a German directive stating that we are to loose the choice of cars and a ford focus estate will be provided. Also that the current opt out system will no longer apply as is not available to German employees as you can see from the segment of the email I received below.
In april 2013 I planned to opt out of the car system and buy my own car. Five of my colleagues have already opted out before the new rules came in and as you can see from the email they can stay as they are
Can I be forced under law to accept the new company car as it is classed as a benefit in kind? And be forced to pay tax on this benefit?
Secondly, can they have the opt out system for some equal employees and not for others.
If I declined the new car, (if I can) and buy my own off my own back are they under law to pay the £390pcm to me as they do the others.
Is there a legal president or legal case study stating that this would it be classed as being disadvantaged or discriminated as the opt out is not open to me and yet is to others of equal employment
Segment of email
Regarding company vehicles as previously stated, *** UK is to
follow a common *** Europe policy as directed by *** AG.The opt out
scheme does not exist under *** AG rules but so far, we have received no instructions regarding the present opt out scheme .As we understand it, at the moment those people that have opted out can stay as they are.
Hope you can help me with this
Answers
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don;t forget opting out, as your money is subject to tax and you have to pay out of that, lease/finance, insurance, tax maintenance etc. You may well find your colleagues will be if not out of pocket not making very much unless they have already paid for the car out right.
I dont; have many opt out drivers and those who are, its either historical and where never offered a co car or they're petrolheads and can't get want they want through our scheme
I dont; have many opt out drivers and those who are, its either historical and where never offered a co car or they're petrolheads and can't get want they want through our scheme
At the moment Mccluff I drive a very nice company car and yes the ford focus is a money saving thing so I really don’t have an argument there. My present car cost me around £360 pre month in tax. I.e. Car and fuel benefit. My colleagues that have opted out receive £390 per month (taxable) from the company in lieu of not having a company car, plus the tax break plus the 45p and 20p per mile and given that I cover 35k miles per year it does well pay it way. But like my question says the opt out has been stopped under new rules but the people that have already opted out can stay as there are, and to be very honest I don’t want to drive a ford focus, id rather drive my own car, some thing that I like. Ps I am a bit of a petrol head lol I just want to know is it lawful to have one rule for one and another rule for others of equal employment.
I don't know the specific rules about company cars, but as far as having one rule for some and another for the rest, that is not uncommon. Look, for example, at pension rules where many companies have stopped final salary schemes for new employees or staff hired after a certain date, while keeping it for those with longer service.
Well you've asked a question in the law section and the whole tenor of your Q and the response above is asking about the legal side.
It is not unlawful, in the same way that it is not unlawful to pay different staff different salaries or provide different sizes of cars. The only way I can see it could be unlawful was if it was discriminatory to one particular group (of the same groups where to discriminate is unlawful - i.e. on grounds of sex, religion etc.). So if they said that only female staff members had to abide by this, it would be discriminatory.
But that doesn't mean that you couldn't pursue this as a grievance - on the grounds that the short timescale of implementation of this policy has disadvantaged you - you had planned to opt out in 12 months time.
It is not unlawful, in the same way that it is not unlawful to pay different staff different salaries or provide different sizes of cars. The only way I can see it could be unlawful was if it was discriminatory to one particular group (of the same groups where to discriminate is unlawful - i.e. on grounds of sex, religion etc.). So if they said that only female staff members had to abide by this, it would be discriminatory.
But that doesn't mean that you couldn't pursue this as a grievance - on the grounds that the short timescale of implementation of this policy has disadvantaged you - you had planned to opt out in 12 months time.
I just want to know is it lawful to have one rule for one and another rule for others of equal employment.
Yes it's absolutely legal and standard practice for changes in contract terms not to effect people that are already under the old contract, they would have to consult with anyone who had previously opted out and get them to agree to a change in contract, which isn't going to happen so they'll let the people who've already opted out continue as they are and just not offer the opt out option any more.
On a side note, everyone I've ever known that's opted out of a company car scheme has regretted doing it after a short period.
Yes it's absolutely legal and standard practice for changes in contract terms not to effect people that are already under the old contract, they would have to consult with anyone who had previously opted out and get them to agree to a change in contract, which isn't going to happen so they'll let the people who've already opted out continue as they are and just not offer the opt out option any more.
On a side note, everyone I've ever known that's opted out of a company car scheme has regretted doing it after a short period.
On a side note, everyone I've ever known that's opted out of a company car scheme has regretted doing it after a short period.
CF - that only applies to the petrol-heads with expensive tastes in CCs who don't have the foggiest how much it costs to maintain a car ourself. Over the years, I've made a fortune out of not having a CC.
CF - that only applies to the petrol-heads with expensive tastes in CCs who don't have the foggiest how much it costs to maintain a car ourself. Over the years, I've made a fortune out of not having a CC.
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