# Company car schemes



## phil (May 7, 2002)

Fucking rip-off. Tax aside, you pay a fortune for the bloody things. I was thinking about it for the replacement for my polo, but I reckon I'd be better off buying it myself. Even with depreciation on a high mileage car.
And that's not including the tax.


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## cuTTsy (Jan 31, 2003)

The choice on ours sucks!
A3,A4 1.6
316 base model 
VW sharran

Took the money...


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## Gren (Jul 25, 2002)

Unless you want a nice new car and can't afford one otherwise then they're usually a bad move. Certainly financially they are.

The only real advantage is care free motoring - any problems, call the garage. Leave it where the hell you like and generally not worry.

Gren


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## cuTTsy (Jan 31, 2003)

Hassle free motoring indeed.
Yesterday one of our company cars had all the tyres changed,,
Simple ATS turn up change the tyres then leave. No cash changing hands. Oh heres your tax disc for next year...
I've managed to prang my car...Well fill in this form please...dealer turns up with courtesy car...

Still wouldn't do it though.


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## whirlypig (Feb 20, 2003)

I've been in various company car schemes for 10 years and the lack of hassle is a definite plus. We had a very good car scheme, choose any car you like and luckily for me that meant a budget of between Â£30k-Â£35k depending on the cars depreciation/lease company value.

At my current company we all opted out just before the changes to company car tax. We bought our cars out and haven't looked back since, the yearly allowance and mileage rate is favourable so I reckon I'm quids in. Of course since then I've had to pay for numerous new tyres because of nails/bolts, servicing, tax, insurance, etc. The allowance should more than adequately cover the depreciation on the car and all those little extras though


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## scott28tt (Jul 30, 2002)

Most of the guys I worked with at my last place had opted out of the scheme just so we could all drive the cars we wanted too.

There was a Scooby, a Fiat Coupe, a Saab 93 convertible, a Focus ST170, and best of all my TTC ;D

I do agree with the hassle-free comments made though, tyres, tax, insurance, servicing, repairs, accidents all taken care of.


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## jam (May 8, 2002)

works out cheaper for me because i don't have to pay the extortionate insurance they would be asking for me at my age

much better! (still pay about Â£300 a month though!)

cheers

James


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## garyc (May 7, 2002)

Been in. Been out. Been back in again. Works well if you do 30+K miles pa. Better if you drive a diesel.

The tax bill is still cheaper than the dep'n on putting 90K miles on a Â£30K car over 3 years.

If you opt out and have an insurance claim on a business trip you also suffer unduely when they load your permium come renewal time, as I found out to my expense.


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## Gren (Jul 25, 2002)

Gary, is what you're saying that you suffer more if you claim whilst on business then when driving for pleasure/commuting? Even when insured for business use?

Gren


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## jampott (Sep 6, 2003)

Out of interest, with a perm job paying in the region of Â£45k-Â£55k per annum, what sort of car would one generally get offered if there was an associated CC scheme?

Also, if one chose to opt out of the scheme, roughly how much would be paid monthly in leiu of the car


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## garyc (May 7, 2002)

> Gary, is what you're saying that you suffer more if you claim whilst on business then when driving for pleasure/commuting? Even when insured for business use?
> 
> Gren


Gren,

Being a cynical git, I beliive the insurers hit the business 'event' harder than a social, domestic and pleasure one when reviewing renewal premiums, as they know you are doing more than average miles so statistically the odds of a shunt get shorter. Plus they have you by the short and curlies as they know you have to have the cover. Lots of people don't go for class 1 business use to save money.

I actually asked them and they neither denied nor confirmed that a business shunt has a bigger impact on subsequent premiums. that suggest to be that they do. :-/

One unnammed insured tried to double my renewal premium after my one month old S4 was vandalised in Brimingham on a .business trip


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## vlastan (May 6, 2002)

Tim,

With such a salary you normally get a car worth about Â£20k.

If you opt you expect to get about Â£450 per month.

But I have heard about more generous company car schemes around.


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## garyc (May 7, 2002)

> Out of interest, with a perm job paying in the region of Â£45k-Â£55k per annum, what sort of car would one generally get offered if there was an associated CC scheme?
> 
> Also, if one chose to opt out of the scheme, roughly how much would be paid monthly in leiu of the car


How would an A4 1.8tQ sound? Or a 320ci? (or a nice diesel ?;D)

I can't post details on here but will IM you later.

thinking of joining?


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## cuTTsy (Jan 31, 2003)

> Out of interest, with a perm job paying in the region of Â£45k-Â£55k per annum, what sort of car would one generally get offered if there was an associated CC scheme?
> 
> Also, if one chose to opt out of the scheme, roughly how much would be paid monthly in leiu of the car


This really depends on the company...

At that level some company offer American style flexible benefits in which you can allocate more or less cash towards the car.


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## W7 PMC (May 6, 2002)

> Gren,
> 
> Being a cynical git, I beliive the insurers hit the business 'event' harder than a social, domestic and pleasure one when reviewing renewal premiums, as they know you are doing more than average miles so statistically the odds of a shunt get shorter. Â Plus they have you by the short and curlies as they know you have to have the cover. Â Lots of people don't go for class 1 business use to save money.
> 
> ...


In some cases though, like my insurer, they allow you Class1 business use for no extra charge.


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## W7 PMC (May 6, 2002)

> Out of interest, with a perm job paying in the region of Â£45k-Â£55k per annum, what sort of car would one generally get offered if there was an associated CC scheme?
> 
> Also, if one chose to opt out of the scheme, roughly how much would be paid monthly in leiu of the car


Tim:

As already said, that all depends on the employer. I get Â£550 per month car allowance (but its taxed, so nowhere near that in the pay packet ).

Quite a few employers gauge it around what they offer by way of car allowance, so in my case, i'd be offered a car that cost upto Â£550 per month on the old Contract Hire scheme. Weird thing is with mine (American Company), they encourage you to get your own car, by paying for all your fuel (aka Corporate AMEX), where as if i had a company car, they would only pay my business mileage & i'd have to put monthly claims in , so all in all i'm quids in being out (if you see what i mean ;D) & i'm not taxed for private mile fuel.


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## cuTTsy (Jan 31, 2003)

We had this scenario at work.

Company car drivers covered by company insurance
Non company car drivers coverd by company car insurance for class 1 business use.
Car allowance drivers not covered by company car insurance for business class use.

Fine I thought just change the allowance into salary...
not acceptable by the insurer, so we have all had to get class 1.

Luckily it is now free with directline.


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## jampott (Sep 6, 2003)

> Tim:
> 
> As already said, that all depends on the employer. I get Â£550 per month car allowance (but its taxed, so nowhere near that in the pay packet ).
> 
> Quite a few employers gauge it around what they offer by way of car allowance, so in my case, i'd be offered a car that cost upto Â£550 per month on the old Contract Hire scheme. Weird thing is with mine (American Company), they encourage you to get your own car, by paying for all your fuel (aka Corporate AMEX), where as if i had a company car, they would only pay my business mileage & i'd have to put monthly claims in , so all in all i'm quids in being out (if you see what i mean ;D) & i'm not taxed for private mile fuel.


Cheers Paul

I'm hoping to stay contracting (in fact received an offer not 5 mins ago....) but have been looking around at perm roles (1 based in either Newcastle, Leeds or Lytham for instance) and as part of the package, I'd expect a car or allowance, and was just wondering how far the money would stretch. I've no interest in actually having a company car, as I'd prefer to keep the TT for at least the next 5 or 6 months (PCP agreement comes to an end in March)

The thing is, I'd assume that the Â£550 per month payable is taxable at 40%? Or isn't it?


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## W7 PMC (May 6, 2002)

> Cheers Paul
> 
> I'm hoping to stay contracting (in fact received an offer not 5 mins ago....) but have been looking around at perm roles (1 based in either Newcastle, Leeds or Lytham for instance) and as part of the package, I'd expect a car or allowance, and was just wondering how far the money would stretch. I've no interest in actually having a company car, as I'd prefer to keep the TT for at least the next 5 or 6 months (PCP agreement comes to an end in March)
> 
> The thing is, I'd assume that the Â£550 per month payable is taxable at 40%? Or isn't it?


Tim:

Take the Lytham job, you know you want to  ;D. or even Leeds, as is only 45 minutes away ;D

Not sure exactly on the tax, as all my income is not taxed at 40%, only the part above Â£30K or whatever the threshold is now. You can still take your allowances & all the other silly income tax bandings into account. At a guess, i'd say i get pay between 32 & 35% on everything i earn, so the Â£550 only equals out to around Â£370 in my pay packet, but i pay no additional tax on private mileage or company car tax, which if i drove something half decent would be a killer as a higher rate tax payer.

Guess its horses for courses really 

Â£380 per month (or around that figure) would get you a brand new TT albeit there would be a balloon of around Â£12K in 3 years (no problem) & say a 15-20% deposit. You could probably get into a V6. Give me a shout if you want any further info, as i looked into all this in depth when i bought the original TT. ;D


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## jampott (Sep 6, 2003)

> Tim:
> 
> Take the Lytham job, you know you want to  ;D. or even Leeds, as is only 45 minutes away ;D
> 
> ...


The marginal rate of tax is still 40% or whatever - it doesn't matter what allowances etc you have, as these are swallowed with your basic salary.....

My TT is on PCP deal at the moment. Granted I didn't put much down (10%) but with a balloon of Â£13k, my repayments are still just shy of Â£500. Maybe Â£380 buys me a Coupe, but who wants one of those? 

V6? I don't think its my style really......


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## BreTT (Oct 30, 2002)

Don't forget that on top of your allowance, you can claim money back from the tax man for using your own car for company business...

My company pays something like 12p a mile and you can claim the difference of (around) 40p and what the company pays for the first x,xxx miles (can't remember but something like 3,000 I think) and then about 25p minus what the company pays you back from the taxman.

I think you can claim a portion of servicing/running costs as well, but don't quote me on that, or any of the figures above.

I am sure someone will be along shortly to put me right... ;D


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## garyc (May 7, 2002)

> Don't forget that on top of your allowance, you can claim money back from the tax man for using your own car for company business...
> 
> My company pays something like 12p a mile and you can claim the difference of (around) 40p and what the company pays for the first x,xxx miles (can't remember but something like 3,000 I think) and then about 25p minus what the company pays you back from the taxman.
> 
> ...


2 methods - straight per mile claim based on IR rates per mile based on 'a car similar to yours';

or absolute method where you charge everything pro rata business to private miles as a % of actual costs. This includes tyres, ins, servicing, dep'n is very carefully controlled by pre determined rates not actuals and you use IR numbers.

Most people opt for simple per mile method. Having done this I can say for a 2litre+ engine for every 10K business miles, deducting the HP rates, you get about Â£1000 rebate back, for 20K miles Â£2000 rebate etc. That does not cover the depreciation for 10,000/20,000 additional miles in some cars unless you are driving a Â£5K hack. :-/

It's all on the IR web site.


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## BreTT (Oct 30, 2002)

> 2 methods - straight per mile claim based on IR rates per mile based on Â 'a car similar to yours';
> 
> or absolute method where you charge everything pro rata business to private miles as a % of actual costs. Â This includes tyres, ins, servicing, Â dep'n is very carefully controlled by pre determined rates not actuals and you use IR numbers.
> 
> ...


But it does give you some extra money back which was the intended thrust of my post.


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## jgoodman00 (May 6, 2002)

> 2 methods - straight per mile claim based on IR rates per mile based on Â 'a car similar to yours';
> 
> or absolute method where you charge everything pro rata business to private miles as a % of actual costs. Â This includes tyres, ins, servicing, Â dep'n is very carefully controlled by pre determined rates not actuals and you use IR numbers.
> 
> ...


I only do a very small number of business miles (< 5k). Could I claim for this?


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## BreTT (Oct 30, 2002)

> I only do a very small number of business miles (< 5k). Could I claim for this?


Far as I know if you did 1 mile you could claim it - whether you would choose to do so is another matter...


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## vlastan (May 6, 2002)

> My company pays something like 12p a mile and you can claim the difference of (around) 40p and what the company pays for the first x,xxx miles (can't remember but something like 3,000 I think) and then about 25p minus what the company pays you back from the taxman.
> 
> I think you can claim a portion of servicing/running costs as well, but don't quote me on that, or any of the figures above.


This is funny...I actually get back 12p from my employer for each mile that I do. Then I can claim at the end of the year the tax difference from the 40p. But this 40p is only for the first 10k miles. After it drops to 25p.

Which means that if you do a lot more than 10k miles you don't get back much money.

I completed my tax return and I was looking forward to some rebate this year. But unfortunately, it looks like they didn't tax me enough during the year and instead of getting back about Â£600...I now own them Â£27!!


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## garyc (May 7, 2002)

> I only do a very small number of business miles (< 5k). Could I claim for this?


Yes. Plus last time I looked it was on a sliding scale ie you got an allaowance of something like 55 p a mile for first 5-6000 and then 36p thereafter. (for a +2litre)

Definateley worth a look. They'll only spend it on scrounging immigrants if you leave it on the table.


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