Driver of said car is told no employee contribution to the private use of fuel is beneficial unless 100% of element is paid back. Now obviously there is an option of a contribution towards the car - up to 5k. Now, can this be paid retrospectively? Or should it be paid before the keys are first given?
To add -
If against retrospectively;
1) Employee at the time wasn't aware of the option - is that a valid defence?
2) Company already owned the car before the employee started their employ.
-- Edited by abacus12345 on Wednesday 2nd of March 2016 04:38:33 PM
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Johnny - Owner of an overly-active keyboard.
A man who can read, yet doesn't, is in no way wiser than a man who can't.
My husband has a company car. His "private" miles to work every day is about 150 miles! He does about 3,500 private miles a month just going to his place of work so its worth it for him, and he drives a car which we could never afford to buy. He is looking at replacing it with a company Electric car next to reduce the BIK, but is worried about its range.
Johnny, I think it can be done retrospectively as long as its in the same tax year. The P11d covers a tax year, so as long as the payment is made in that tax year it does not matter if the payment is made at the end rather than be beginning.
I had a company car at my last place of work. I had a 7-seater as I have 4 children and we didn't fit into a 5-seater one. As this was my only car, I used it for business and personal use.
CO2 emissions were 207, an extortion. I had to pay for private miles at a rate of 0.17p per mile if I remember correctly. In my case, it wasn't worth it, as I did more private miles than business miles. I was paying close to £300 per month for the car, not including the weekly average of £75 on private miles (those were to go to work). My wages were being taxed at 40% because of the car allowance. I had a big position, good wage of over £34,600 and was taking home (after bills paid), £120.
My job was actually costing me money. I had requested for the company to take the car back, but they wouldn't as my position demanded it. According to them, that is, as I traveled for work purposes once a year.
I ended up leaving that job and taking up another one, within 2 miles of my home, with less hours worked and a reduction in wages of £9,000 and I would take home after bills paid £400 (I am being taxed at 20% now).
A company car is good for those that require constant business travel and whose car is not only cheap but CO2 emissions are low. In my case it was the worst mistake yet.
