The policy for the new company is that they will charge me 15p per mile for personal use, and that personal mileage should be no more than 20% of the total mileage.
Car possibly going to be a Passat GTE estate, if they can get one any time soon.
Never seen that sort of mileage thing before. Will be asking roughly what sort of business mileage is done. Will have to use the wife’s car a bit more when we go out I guess.
Sounds rubbish. Find out if they do a personal allowance.
I hope what ever the car is that it comes with a low tax burden.
Sounds like a shit deal.
It doesn’t seem the best deal. I think the Passat is around 14% bik. Rather have something as nice with 8%. There doesn’t seem to be any incentive to charge it up at all, which is a bit shit imo.
The newer version of my BMW 225xe is 8%.
Will investigate further.
I would have thought you would achieve that just commuting to work
It will be work from home. At customer sites 80%ish of time and one day admin/golf/tossingmyselfoff.
I guess you’ll have to work out the cost per mile based on 15p plus what ever the 10% limit works out to be.
20000 busienss miles allows you 167 private miles a month. If the tax is £150 a month thats around £1 a mile which isnt much of a benefit.
Actaully ive got that wrong, you can do 20%, of business miles so around 50p a mile.
Better but still not a very good deal
Err, not convinced that the car as offered is much of a benefit. Is the pension any good?
It is okay. 5% contribution from the company.
The car policy is not the best, but it will have to do. I have been doing 16k personal miles for the last few years. That involves a lot of 80 mile round trips to the office. I will not miss that bit. Not at all. No siree. Nope.
That sounds decidedly penny pinching, hopefully not a sign of wider company practice?
I don’t think so. I have had much worse schemes than that.
It would appear to be a lot less shit that what I do now. It pays a fair bit better. It is on very interesting stuff. No pointless office commutes. No fucking weird colleagues. And some other stuff I can’t think of at the moment as I am feeling sleepy.
Totally agree. I’ve gone from 2-4 hrs travel a day, plus staying away etc, within a 60-70 hr working week, to working 90% from home with only occasional client visits and I certainly do not miss the travel and tiredness etc. Totally changed my quality of life for the better and I hope it does the same for you too.
The lack of incentive to plug it in does seem a bit daft though.
Does the 15p cover the petrol?
Should do. I think I calculated it does at just over 50mpg, which the Passat should just about do without plugging in.
Will get references and everything sorted out and start dates then ask a question or two about it.
This means you will avoid the fuel benefit. Tax on fuel BIK often costs more than the 15p reimbursement.
Depends on speed, mine does about 45mpg at 70 but more like 55 at 62mph.
If its a flat 15p per mile fuel economy is irrelevant from a cost point of view.
Is there a benefit in kind of you have to pay for personal usage?
Edit: I looked it up. Any payments you make reduce the benefit in kind directly. So you need to do the maths on what the benefit comes out at.
If you repay all of the private fuel then avoid the fuel bik. No impact on main car bik.
The reimbursement of private fuel is normally worth it particularly if 40% tax payer as the fuel bik is punitive.
Just a faff keeping a log etc so many people don’t bother.