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Company Car Issues

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Just wondered if anyone could give me any advice on company cars.

My current car's 3 year deal finshes this Jan and i looked into replacements of which i had a slightly better car - scirocco tdi - compared to the existing cooper s. So was £355 over 2 years vs £318 for 3 years on the current deal.

This was rejected and i was told nothing had been signed off at work for a replacement car and secondly it was too much - i had the car before i was promoted and am in line to be promted again in the next 6 months - i never actually got a payrise when i was promoted, x1 inflationary pay rise in 3 years.

So stupidly i thpught the small increase would be ok - apparently not and now they are saying i would just keep my present car. I dont mind this for 6 months or so but they are always banging on that my co car is the equivalent of £4k a year in salary....a response i get everytime i mention what is happening with my salary. If i am driving an increasingly old car am i being mugged off?

I have also said i will get a deal that matches the current cost and term but my immediate boss has said that having the new vehicle will create poloitical issues!

I am worried thst i don't want to be a brat as well but i have worked there nearly 7 years have twice been offered a job elsewhere but they have asked me to stay pledging extra pay etc down the line which i have not had.

Am i mug or should i be grateful for what i have?

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Do you have any documentation describing the company car scheme? These documents usually state how long a car is expected to be kept for and what is the maximum lease payment you are allowed for a particular grade. They often list specific car models allowed. If you have gone off this list it is not surprising you’ve been refused.

Possible future promotions are probably irrelevant – it is what grade you are on at the point of renewal that counts.

I have known it to happen that 3 year leases are extended to 4 years when the company is hard up. I don’t think you can complain if the same policy is applied to everyone.

Verbal promises of pay rises should be treated as unreliable – you will have to decide how much you trust the person making the promise. He/she could leave the company and the next person won’t know anything about such a promise.

Your car certainly is equivalent to an amount of salary – that’s why the government taxes you on the perk. I recommend you take some time to understand fully the tax you pay on a company car.

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Do you have any documentation describing the company car scheme? These documents usually state how long a car is expected to be kept for and what is the maximum lease payment you are allowed for a particular grade. They often list specific car models allowed. If you have gone off this list it is not surprising you’ve been refused.

Possible future promotions are probably irrelevant – it is what grade you are on at the point of renewal that counts.

I have known it to happen that 3 year leases are extended to 4 years when the company is hard up. I don’t think you can complain if the same policy is applied to everyone.

Verbal promises of pay rises should be treated as unreliable – you will have to decide how much you trust the person making the promise. He/she could leave the company and the next person won’t know anything about such a promise.

Your car certainly is equivalent to an amount of salary – that’s why the government taxes you on the perk. I recommend you take some time to understand fully the tax you pay on a company car.

Thanks for the input Treymayne - i wish i worked in this formalised environment!

There isn't a formal scheme as there only 2 other vehicles, one of which is new a couple of months ago - when i got the last one they just asked what i wanted, within reason!

Suppose i will just have to get on with it, just feels like a further erosion of my salar package - friends of mine all have 2 or 3 year deals.

I do know my current car is on a 3yr/15k pa but guess they will extend it.

It is annoying as it is the guy who owns the company that has said on a couple of times about the promotion and even in the intrim about a pay review - just gauling to think that with one promotion 2.5 years ago and just one inflation pay rise that i am technically on less money now than i was in a more junior position. Factor in the extra hours upto 15 and the salary is even weaker. A job is a job though!!!!!!

Anyone else having the corporate squeeze applied?

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Anyone else having the corporate squeeze applied?

Fortunately not, is the company struggling?

If they are but you like working for them you might not mind being dicked around as they may make good in future, or at least they may have good intentions. If they are financially sound I would definitely look into the other job offers. If they promise pay rises / perks that they don't intend to follow up on then in my book they are at best mis-leading you and at worst outright tight fisted liars. Why would you continue in an environment with such little respect? Only if you had no alternatives. Which apparently you do.

I naively believe in a certain degree of loyalty to my employer.. but if I thought they didn't deserve it I would definitely do the best thing for me. F**k 'em. :)

Good luck either way.

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I have a sneaky suspcion OP, that if you were to resign you'd be offered a nice pay rise and a new car. It sounds like you are important to the company but they are stringing you along. Your call of course! Perhaps best to have another job offer in place.

Alternatively, 15k a year isn't a lot of miles. It might be cheaper for you to buy and run your own second hand car and then claim back the business mileage from the company. I was disappointed in myself that it took me so long to work out how much tax I was paying on the company car and fuel and gave up company cars some time ago, and have no regrets - no petty politics about a new car, save money.

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Ask them to give you the £4k and take a personal lease. The benefit in kind tax saved will give you a bit more dosh to play with too.

Lease deals seem to be getting more uncompetitive all of the time though.

I had a lease car for £315 a month in 2006. Current price for same model today is £420 for the same mileage with a higher balloon payment.

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Ask them to give you the £4k and take a personal lease. The benefit in kind tax saved will give you a bit more dosh to play with too.

Lease deals seem to be getting more uncompetitive all of the time though.

I had a lease car for £315 a month in 2006. Current price for same model today is £420 for the same mileage with a higher balloon payment.

indeed, youd claim 40p a mile on the first 10K....thats a £4K pay rise, lower tax as you dont HAVE a company car, and tax relief at 40p per mile...offset with you do the repairs, fuel and tax/insurance.

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i never actually got a payrise when i was promoted

Am I alone in thinking this is an absolute no-no?

Your company has already strung you along. Promotion means more responsibility, which is a burden you should be compensated to take on.

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indeed, youd claim 40p a mile on the first 10K....thats a £4K pay rise, lower tax as you dont HAVE a company car, and tax relief at 40p per mile...offset with you do the repairs, fuel and tax/insurance.

I'd look into the insurance side.. I believe insuring a personal car for business use can be pretty expensive. A mate did it a while back and I think they were quoting him well over a grand.

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I'd look into the insurance side.. I believe insuring a personal car for business use can be pretty expensive. A mate did it a while back and I think they were quoting him well over a grand.

Class 1 business use is maybe free, and usually doesn't bump up the premium by more than £20 or, in my experience!

That's not the same as using the car to deliver valuable stuff! :huh:

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cheers for all of the responses - really appreciate it as i do not have too many people i can get advice from, always sound advice from you hpc'ers as well.

Fortunately not, is the company struggling?

If they are but you like working for them you might not mind being dicked around as they may make good in future, or at least they may have good intentions. If they are financially sound I would definitely look into the other job offers. If they promise pay rises / perks that they don't intend to follow up on then in my book they are at best mis-leading you and at worst outright tight fisted liars. Why would you continue in an environment with such little respect? Only if you had no alternatives. Which apparently you do.

I naively believe in a certain degree of loyalty to my employer.. but if I thought they didn't deserve it I would definitely do the best thing for me. F**k 'em. :)

Good luck either way.

.

We have been chasing a lot of overdue accounts recently - just seems to be a kack of liquidity in SME's at the moment as opposed to a lack of work.

Have been there 7 years and i really don't want to move - partly as if i did get made redundant i would have something to fall back on. My profession is not the most secure.

Part of the issue is my immeadiate boss, who i have worked with for 2 years since he joined the company seems reluctant to increase the cost of the team - despite having a cheeky unmentioned promotion himself and then promoting a coleague above me who he had also bought in 18 months ago. i liken myself to a piece of fruniture he has inherited; despite the fact 4 years ago he offered ne a job at his old employers, one of the approaches i turned down to stay at the current place.

As i have known the company owner for 7 years he says all this stuff about promotions but it just gets rubbished when i talk to my immediate boss - who seems to take every oppurtunity to undermine me to the wider company.

I have a sneaky suspcion OP, that if you were to resign you'd be offered a nice pay rise and a new car. It sounds like you are important to the company but they are stringing you along. Your call of course! Perhaps best to have another job offer in place.

Alternatively, 15k a year isn't a lot of miles. It might be cheaper for you to buy and run your own second hand car and then claim back the business mileage from the company. I was disappointed in myself that it took me so long to work out how much tax I was paying on the company car and fuel and gave up company cars some time ago, and have no regrets - no petty politics about a new car, save money.

That is the thing i work on some complicated accounts that do not strictly fit our skill set as a company but i make decent money whilst ensuring the customers are always happy.

So i know they would want me to stay, apart from my immediate boss but as the last time i was offered a job was in May they probably would not take it seriously id i did it again.

I think i will just flag up to the MD when i am back issues that are on my mind - my immediate boss is purely out for himself - i have mentioned a number of times about the promotion and no payrise but he just says i am on an average salary for my role in the north east......we are in leeds and service london clients!

Ask them to give you the £4k and take a personal lease. The benefit in kind tax saved will give you a bit more dosh to play with too.

Lease deals seem to be getting more uncompetitive all of the time though.

I had a lease car for £315 a month in 2006. Current price for same model today is £420 for the same mileage with a higher balloon payment.

I am seriusly considering this, they made me change from a car allowance to a co car 3 years back. I was doing big miles back then and lost out on the car loan because of it. Now i ironically do very few business miles. I think i will do this to call their bluff and stop what i see as another assault on my pay! Ithink i pay around £45 pm in tax for the car so an extra 4k on my 25k a year woukd see a decent amount to play with .........and no office politics to contend with!!!!

indeed, youd claim 40p a mile on the first 10K....thats a £4K pay rise, lower tax as you dont HAVE a company car, and tax relief at 40p per mile...offset with you do the repairs, fuel and tax/insurance.

That is the only draw back the add ons for a personal car road tax, insurance. at the moment i lead a very hpc like life with only a £100 a month outgoing about to finish and i have no other monthly outgoing aside from rent, food and utilities!

Am I alone in thinking this is an absolute no-no?

Your company has already strung you along. Promotion means more responsibility, which is a burden you should be compensated to take on.

I was so pleased with the promotion that when they said my salary would not go up for 4 months to year end i was not that bothered, then in 2008 year end we lost a big newish client that went bust, so the salary increase was on hold. Since then my immediate boss seems to not care about the salary increase and openly rejects it. This summer i had the company owner saying i was inline to be promoted again and on another occasion mentioned a salary review. When i mentioned the promotion to my boss it was not on the agenda and only because i pushed the issue he has given me a corporate **** sucker criteria towork towards - i always thought profitabilty, client happiness and good old hard work and determination was enough!

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  • 145 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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