View Full Version : Company Car/Van

12th March 2017, 10:14 AM
I am being offered a company car/van for my job role as an inspector. I would be driving around to various locations in a day etc... I will also have a fuel card.

Do I pay any additional income tax?

I will be using the car for travel from my home to either the office, yard or site.
I will not be using the car for any personal or private use.

I have tried to look at various websites but I am still confused.

12th March 2017, 10:51 AM
You will be charged company car tax for a car because travel from your home to place of work is personal, not business mileage. Tax is based on the CO2 emissions as issued by HMRC. As the car ages the tax level increases. the second part of this tax is for fuel if it is paid for by your employer. The way it works is that the taxman assesses the annual benefit a company car is worth and deducts that sum from your freepay. When I gave up my company car in 2006 my tax code was in the region of -620 (freepay at the moment is +1060) my tax saving was close to £4000 pa =£330.00 per month
You may wish to see if your employer will pay the additional tax on your behalf.
You can see the rates by following up the 'benefits in kind' car tax section on the HMRC website.
Beware this one, if you have a company car the taxman will want paying I have known people to be charged thousands of pounds in unpaid income tax.

There are different tax rules for vans but I do not have specific detail to comment on the tax cost.

one final note, in my case the car was a 2 litre Jag and company paid fuel

12th March 2017, 02:37 PM
If the company pay fuel for personal use that is counted as an additional benefit and as such you're taxed a lot more for that, you don't get taxed on them providing a fuel card for business use only. Depending on you car and tax bracket, you can expect to pay between £100 and £230 per month in tax for the car, as Binthere says above you can check this on various websites, just google "company car tax calculator". Some companies provide vans for employees who are site based which can be tax free as long as the vehicle is only used for travel to, from and on the site and not used for personal use - this would be your best option is you've already got a car for personal use. Your company should be able to advise on whether it is a taxable benefit.

12th March 2017, 03:48 PM
So, to avoid paying any tax on a car or van I should make my own way to the office and then use the company car/van for work purposes? Sounds better to me.... I know they were looking for some one local to the office, so this may be the reason why I was the chosen one :nuts:

Fecking government tax everything they can think of!

13th March 2017, 09:28 AM
Good luck with the new position longun.

Just as a footnote to the above, when I got my first company car in 1973 it was not subjected to BIK taxation. This continued til the mid 1980's when we started paying about £30 a month in tax and has progressed year on year to where we are today. in 2008 I bought my own car and charged the firm mileage for company use. Financially though in today's market you need a good pay packet if you have to travel on company business just to cover the expense.

13th March 2017, 05:55 PM
I would take Van you would pay a lot less Tax with the Van rather than the car.

If you use the Van for your own use out of work hours check your covered on Insurance for Private use.

21st March 2017, 09:03 AM
if you are not using the van for personal use you wont be charged a penny (simples)

---------- Post added at 10:03 AM ---------- Previous post was at 10:02 AM ----------

I have a van for the same use and I don't pay a penny