Editor's Blog1 min ago
New Company Car
Hi all, looking for some advice.
My partner has recently started a new job which includes the use of a company car. The car is tracked and although she is allowed personal use of it, she has to pay 12p per mile.
She has now been informed that she will also receive a new tax code which will reflect that fact that she has access to a company car.
Just looking for some advice as I think this equates to be taxed twice.
PS as she works from home 3 days a week, they are also telling her that the mileage from home to her first call is also being classed as personal mileage.
Any help / advice would be most welcome.
Thanks
My partner has recently started a new job which includes the use of a company car. The car is tracked and although she is allowed personal use of it, she has to pay 12p per mile.
She has now been informed that she will also receive a new tax code which will reflect that fact that she has access to a company car.
Just looking for some advice as I think this equates to be taxed twice.
PS as she works from home 3 days a week, they are also telling her that the mileage from home to her first call is also being classed as personal mileage.
Any help / advice would be most welcome.
Thanks
Answers
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I suspect the first call is comparable to getting into work, which we don't usually have the option to claim for.
It will be the difference between what she has to pay the company and what she gets out of the arrangement that counts as 'benefit' and would be taxed in addition.
If the code proves incorrect one should see a correction at the end.
It will be the difference between what she has to pay the company and what she gets out of the arrangement that counts as 'benefit' and would be taxed in addition.
If the code proves incorrect one should see a correction at the end.
-- answer removed --
Company cars are taxed as a payment in kind and as such you will pay a proportion of extra tax for that benifit.
My OH doesn't have to pay personal mileage but I think his tax is slightly higher because of it. They had a n option at the begining of this year to either pay private mileae or get hwith the tax. It worked out that everyone stayed with paying the tax as in the long run it worked out cheaper for them.
My OH doesn't have to pay personal mileage but I think his tax is slightly higher because of it. They had a n option at the begining of this year to either pay private mileae or get hwith the tax. It worked out that everyone stayed with paying the tax as in the long run it worked out cheaper for them.
She just need to keep a log (a book in the car) stating date, where from and to + business or pleasure. Yes tax code will change. Mileage from home to first call should be classed as business excluding mileage from home to normal place of business. That's how it used to be. HMRC site will have upto date advice or can she ask another colleague in similar situation?
Jhoda - my favourite subject - actually part of my job to report vehicle movements within our fleet. You might find the following of some use:
http://
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Following on from TonyV advice on the employer saying mileage to first appointment is an employee cost.
You need to read the relevant part of the HMRC manual of expenses. The relevant section is EIM32366. The issue is whether the employee holds a travelling appointment, as distinct from an employee who travels to other locations as part of their job. A salesman or a service technician are examples of the former. These people can have all their "from home" travel expenses as tax deductible. That in itself does not force the employer to have to pay all these costs - just that the employee can offset any costs not paid by employer against tax.
You need to read the relevant part of the HMRC manual of expenses. The relevant section is EIM32366. The issue is whether the employee holds a travelling appointment, as distinct from an employee who travels to other locations as part of their job. A salesman or a service technician are examples of the former. These people can have all their "from home" travel expenses as tax deductible. That in itself does not force the employer to have to pay all these costs - just that the employee can offset any costs not paid by employer against tax.
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