ChatterBank2 mins ago
Company Cars
6 Answers
If my company withdraw my car , am I entitled to an increase in my salary as I pay tax on the car ?
I have been told my car is being with drawn and I am being offered a one of payment of � 1500.00 , I have had a car for 7 years and have always paid tax on it
I have been told my car is being with drawn and I am being offered a one of payment of � 1500.00 , I have had a car for 7 years and have always paid tax on it
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No, sorry, you are not.
Your company is proposing to change a condition of your employment whereby it provides you a car and remove this clause. In exchange it is offering you a one-off payment of �1500. That's the deal, by the sound of it, and it my opinion it's a very feeble offer. Many years ago I was offered far more than this as a salary uplift for foregoing my company car. Asa side issue, you will pay less tax in future because the car is assessed as a taxable perk. But think of the reduced tax as a salary cut - which is effectively what it is (because you will presumably have additional costs for running your won vehicle).
Your options are to accept the offer, or go back and renegotiate it.
Your company is proposing to change a condition of your employment whereby it provides you a car and remove this clause. In exchange it is offering you a one-off payment of �1500. That's the deal, by the sound of it, and it my opinion it's a very feeble offer. Many years ago I was offered far more than this as a salary uplift for foregoing my company car. Asa side issue, you will pay less tax in future because the car is assessed as a taxable perk. But think of the reduced tax as a salary cut - which is effectively what it is (because you will presumably have additional costs for running your won vehicle).
Your options are to accept the offer, or go back and renegotiate it.
Well then your options would appear to be:
1) Accept it. Since this is a change to your conditions the company must give you formal notice in writing of the change, the notice period being that defined in your contract - probably 7 weeks notice since you've been there 7 years - could be longer.
2) Reject it and start the grievance procedure on grounds that the company is cutting your pay and benefits package.
3) Resign and claim constructive dismissal at an ET. I don't recommend this - you'd have to show the company was acting totally unreasonably and had fundamentally breached your contract.
1) Accept it. Since this is a change to your conditions the company must give you formal notice in writing of the change, the notice period being that defined in your contract - probably 7 weeks notice since you've been there 7 years - could be longer.
2) Reject it and start the grievance procedure on grounds that the company is cutting your pay and benefits package.
3) Resign and claim constructive dismissal at an ET. I don't recommend this - you'd have to show the company was acting totally unreasonably and had fundamentally breached your contract.
My company did this gradually , first the fuel card gone , that was the best perk of all time especially at this time of high prices, they gave us 1200 per year for that then the company car was being got rid of, we got a salary increase + the tax code change and a one off lump sum of �3500 to assist us buying our own company car , i was miffed at first but now realise it was just a status thing , its still on the drive but wont be changed every 3 years like it used to be, on the positive side of the coin I can now easily change companies without the bother of being without a car !
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