Take Company Car (BIK) or get milage on Own car ?

M

Mixednuts

Registered User
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Hi,
I have a question if anyone can help with advice then that would be great .

I have been asked to go out on the road in work and have been given a couple of options with regards to what vehicle to use .
It is important to note that I will have no salary increase .

I can take a 08 Toyota Avensis & fuel and pay approx €275 BIK a month .

or

Use my Santa Fe 07 and claim € 1.35 per mile (no fuel card)

I will also be subsided for servicing of my vehicle and also tyres .


I would like to hear what you think as I am trying to get my head around de-preciation etc etc.

Ta

L.
 
Mixednuts said:
...I can take a 08 Toyota Avensis & fuel and pay approx €275 BIK a month ...
Click to expand...
I take it your annual business mileage will be below the BIK exemption limit?

What about the option of a BIK-free commercial vehicle that gets dropped off at work each night, or is my information out of date?
 
Thanks Math...

I was also given the option of a pooled vehicle but pesonally it would mean a massive headache ingetting the car back around 5ish and then getting to collect my son (heavy traffic) in the opposite direction to home .

I am not going to be doing massive milage so I will not get the max relief on the BIK , I have it estimated at around €275 per month .

L.
 
OK, in the cureent motoring climate if you try to sell the Santa Fe you will probably lose money on the deal and then face the monthly BIK bill on the Avensis.

It might be better to try and make a few quid out of the Santa Fe, but you will have to arrange commercial business-class insurance on it and your insurers will probably charge any thing from 25 - 60% extra for this, depending on whether your are selling for living. Will your boss contribute to this? Your boss will also ask you to sign an indemnity for the firm in case you have an accident while using your vehicle for work-purposes. Also remember, that its still your car, not a pool car or works vehicle, so someone needing it to "nip down to the shops" at lunch-time is a no-no.

Its a bit of a Hobson's choice I'm afraid. Best of luck with your decision.
 
It really depends on the mileage. General rule of thumb is if the mileage is high use your own car as the mileage expenses will cover all your tax, insuarance, petrol, W&T and them some.

If it's low mileage take the company car.

Or do the maths for 5 mins and work out your monthly mileage and compare that to your BIK.

IMO, cars always cost you money. From tax, insurance, petrol and even when you sell it. However, at least if you sell it and make a loss you'll have the extra cash in your pocket and still have the use of a company car with no monthly payments for petrol,tax, insurance W&T etc.
 
Ta Jim...its early days and am micro managing all costs at the moment ... Have the option to take company car even after 2 months of using my own so will have a good chance to see and compare ,
 
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