tag:blogger.com,1999:blog-7156218446024820676.post8613549537401303530..comments2023-05-17T10:38:12.901+00:00Comments on TaxBuzz for the Tax Advice Network: Are company cars "appreciated by all"?Mark Leehttp://www.blogger.com/profile/11524316185528362603noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-7156218446024820676.post-56746892197154699102010-08-14T16:30:35.479+00:002010-08-14T16:30:35.479+00:00Thanks for your comments everyone.Thanks for your comments everyone.Mark Leehttps://www.blogger.com/profile/11524316185528362603noreply@blogger.comtag:blogger.com,1999:blog-7156218446024820676.post-84167991594647870262010-08-11T10:33:54.762+00:002010-08-11T10:33:54.762+00:00A company car for my clients is not seen as a perk...A company car for my clients is not seen as a perk but an integral part of remuneration, the ability to habe transport used extensively for business use and with all the wear and tear that goes with it. The loss of a company car has personal issues af affordability and NCB, plus repairs. As many clients use their cars for work purposes in the main, the 40/25ppm is not sufficient. It is a case of doing the maths. There are some relatively high spec cars now with low emmissions, low enough that a £1500.00 tax bill is cheap driving when companies can pull on discount servicing, insurance and repair work. Fuel too can be benefial - as said run the figures, guessing could cost your client.Judi Painenoreply@blogger.comtag:blogger.com,1999:blog-7156218446024820676.post-29966800665131484952010-08-10T16:55:29.301+00:002010-08-10T16:55:29.301+00:00Just re-reading this with my business hat rather t...Just re-reading this with my business hat rather than tax hat on, it is either a very bad analogy or Mr C has a very poor understanding of business.<br /><br />1) As you say Mark, this would involve effectively cutting the employees remuneration. Employment law issues would abound, staff moral would be zero and the decent staff would be looking to jump ship.<br /><br />2) Mr C has obviously never tried to terminate a lease early. Or for that matter sell a car fleet in a hurry at an auction. <br /><br />3) The sales staff will now not have cars and will do what exactly to visit customers? They probably won't have a second car lurking in their garage.<br /><br />4) If we sold the cars to the employees we would have to lend them the money and potentially pay them FPCS rates as well.<br /><br />So Mr C is saying that he is going to introduce measures that are:<br /><br />1) Unfair.<br /><br />2) Maybe unlawful.<br /><br />3) Unworkable.<br /><br />4) Don't actually save money.<br /><br />5) Be counter productive.<br /><br />Par for the course I guess.Vaughan Blakenoreply@blogger.comtag:blogger.com,1999:blog-7156218446024820676.post-69079966804738618852010-08-10T11:37:45.474+00:002010-08-10T11:37:45.474+00:00Suppose you have a company director with his secon...Suppose you have a company director with his secondhand Jaguar. He claims FPCS when using the car for business. Supposing he has a daughter/nanny/mistress (delete as approriate!). Why not give Mr Director a small brightly coloured low Co2 rated runabout company car. This could be used by said daughter/nanny/mistress at a small BIK cost. As the insurance for say a daughter at university could be over £1,000 pa it can prove most cost effective.<br /><br />I agree with Nigel re the fuel unless the person does a very very high personal mileage.Vaughan Blakenoreply@blogger.comtag:blogger.com,1999:blog-7156218446024820676.post-62018428216859460352010-08-10T10:36:05.879+00:002010-08-10T10:36:05.879+00:00I still think a company car is a valuable part of ...I still think a company car is a valuable part of a remuneration package. It relieves the employee of the need to find the capital to buy a car, and gives them peace of mind that all running and standing costs are taken care of. I am happy to pay a premium for that.<br /><br />But I think it is outdated thinking to suggest that a company car is a "perk". For most employers it is a carefully calculated employment cost and the employee's salary will have been set with that in mind. Let's not suggest that it is a sort of freebie!<br /><br />Now employer-provided fuel is a totally different matter. I advise all my clients to buy their own fuel, the tax scale charge is utterly penal.Nigel Harrishttps://www.blogger.com/profile/11430358952787100792noreply@blogger.comtag:blogger.com,1999:blog-7156218446024820676.post-37652318844310186252010-08-09T12:39:30.909+00:002010-08-09T12:39:30.909+00:00The % of list price now starts at 5% for cars with...The % of list price now starts at 5% for cars with CO2 emissions of 75 gr/km or lessBeckyhttps://www.blogger.com/profile/06825101709070079346noreply@blogger.com