Company Cars - the deal

magpie · 05-04-2006 4:33pm #1

What's the usual deal with company cars? Are they on a set lease term or can the company return them at any time?

prospect · 05-04-2006 4:36pm

magpie wrote:

What's the usual deal with company cars? Are they on a set lease term or can the company return them at any time?

Our company has them for a fixed term.
If the employee leaves, the car either gets passed onto their replacement, or sits idle...

magpie · 05-04-2006 4:46pm

Crap. What's the fixed term? I want to switch to a more tax efficient 'car allowance'

Gary ITR · 05-04-2006 4:48pm

depends on the company. Mine is three years but the last company I worked for had them for four years.

magpie · 05-04-2006 4:49pm

Urgh.

Gary ITR · 05-04-2006 5:00pm

Whats the lease company? I know if you go over a certain amount of miles the car has to be changed too. 120000 with Allied Arval

unkel · 05-04-2006 5:16pm

magpie wrote:

I want to switch to a more tax efficient 'car allowance'

The most tax efficient if you do enough miles is to keep your own car and pay for all costs. The company can then reimburse you per mile which is tax-free under certain conditions* (discussed here a few weeks ago - do a search)

In practice, the aim is that you get more than the car costs you, so you drive for free, courtesy of your employer

*This doesn't work for driving to and from work, amongst other conditions

Company Cars - the deal

Comments