Company Car - Loosing money!

[lethal]

Originally Posted by Galahad

Or MG Rover

They just gave the workers a brass handshake and told them to knock the lights off on the way out.

[Galahad]

Originally Posted by Trevor

When did they recently give money to MG Rover?

You've got a short memory, they were going to give MG Rover a bridging 'loan' to help secure the SAIC Chinese deal, to basically keep them solvent until the Chinese bought the company. Should they ever had bought MG Rover, there was no compulsion for them to pay the 'loan' back.

It contravened EU guidelines, but the government were so desperate to try and stave off bad news just before an election, and especially as Birmingham is as about as Labour die hard as you can get.

It is curious though. when it comes to protecting homeland manufacturing, both the French and Italians protect their industries no matter what. We on the other hand seem to be the only EU member that actually takes notice of any fines we can be given for protecting our industries, so hence we don't have any manufacturing car industries anymore. If the Italians hadn't propped up Fiat when they did, they'd be long gone by now.

[lethal]

Originally Posted by Galahad

You've got a short memory, they were going to give MG Rover a bridging 'loan' to help secure the SAIC Chinese deal, to basically keep them solvent until the Chinese bought the company. Should they ever had bought MG Rover, there was no compulsion for them to pay the 'loan' back.

I dispute that the bridging loan was an assist to MG Rover. It looked more like a sweetner from Labour to the Chinese which was all but paid directly into their bank accounts

[Galahad]

Originally Posted by lethal

I dispute that the bridging loan was an assist to MG Rover. It looked more like a sweetner from Labour to the Chinese which was all but paid directly into their bank accounts

Call it what you like, it would have personally benefitted MG Rover had it gone ahead by keeping them solvent long enough to get SAIC to buy them, sweetner, bribe, bridging loan, tis all the same

[Trevor]

Originally Posted by lethal

I dispute that the bridging loan was an assist to MG Rover. It looked more like a sweetner from Labour to the Chinese which was all but paid directly into their bank accounts

I agree, there was no way that could be described as a cash injection. It was a little short of a bribe to the Chinese.

[Trevor]

Originally Posted by Galahad

It is curious though. when it comes to protecting homeland manufacturing, both the French and Italians protect their industries no matter what. We on the other hand seem to be the only EU member that actually takes notice of any fines we can be given for protecting our industries, so hence we don't have any manufacturing car industries anymore. If the Italians hadn't propped up Fiat when they did, they'd be long gone by now.

I can only agree with that. And it goes all the way down to the farmers selling at the markets etc,. We enforce all the rules, they turn a blind eye.

[Galahad]

Originally Posted by Trevor

I agree, there was no way that could be described as a cash injection. It was a little short of a bribe to the Chinese.

It would have also kept MG Rover solvent, that in itself is a cash injection. Don't get me wrong, the implication that it was a bribe isn't incorrect, but, the EU got in a big huff about it (after Renault complained) .

[Adam Moran]

Fuel card??

Any you pay for your private miles.

[lewist123]

Originally Posted by Adam Moran

Fuel card??

Any you pay for your private miles.

my old company did fuel cards and it worked out great! but his company won't. I already asked them when i first joined the company

[SimonP]

Fuel cards really don't make any financial sense unless you're doing more than about 500 miles a month private mileage as you're paying twice the tax you would do to have a company car anyway. What it does do though is take the hassle out of having to mess around with your expenses and loss of money from your own personal account.

What I do is I have a separate credit card which I only use for anything business. It's my own card, not company and all my fuel, hotel, food and other expenses goes on it. I can claim for my expenses on a 2 weekly basis online, so always have an extra through flow of cash into my current account. I pay the credit card off every month so never accrue interest and I'm never out of pocket in my current account.

[Trevor]

My sister has a company credit card for he company expenses, it is an amazing little bit of plastic and you would be surprised what you can put on it.....

[SimonP]

Not all companies offer a company credit card!

[Trevor]

Yes, and I am not surprised!

[j17sparky]

How does the tax work then? Which figures are the ones that i should be looking at on this page http://www.comcar.co.uk/newcar/compa...userID=2223945

[lewist123]

well i did do the credit card thing at one company, but only because they gave be a £600 cash float, but this company doesn't do that.

last month i spent £820 on company expenses!

i did get some of that in advance, but not a lot.

[SimonP]

Originally Posted by j17sparky

How does the tax work then? Which figures are the ones that i should be looking at on this page http://www.comcar.co.uk/newcar/compa...userID=2223945

You get taxed on a percentage of the car's value when new. The percentage you get taxed on, depends on what band the car falls under. I get taxed on something like 20% of 20% of the car's value.

For arguments' sake, 20% of £19,000 is £3800 which is the amount you're taxed on. Then, the tax you pay on that amount depends on what category/band the car is on. Let's say it's in band D, you'll then get taxed 20% of £3800 which is £760 equating to £63 a month extra tax you'll pay.

I am just using figures to illustrate. I don't know that actual percentage, it's probably different to the above, but that's basically how you'll get taxed on a company car (non fully expensed).

[CraigGreen]

So you need a degree in boredom to understand how the tax is calculated on a company car?

Is the value what the actual car cost or the manufacturers RRP? We get our Fords at almost 1/2 price.

I've no idea what I get taxed tbh. I have a fuel card & do farly small private miles, but it cost me £85 last month. Pretty steep but I'd done a few long runs recently. London, Alton towers Bristol numerous times.... All in a dull as dish water Fiesta DERV.

[lethal]

Originally Posted by CraigGreen

So you need a degree in boredom to understand how the tax is calculated on a company car?

Like many taxation systems, it is deliberately obscure so as to make it difficult to work around the system.

[Andy_L]

Originally Posted by BlackIce

I hate having a company car, you get taxed on the sodding thing before you start

Yeah having a company car must really suck, it's insured, taxed, maintained and you get either business mileage or a fuel card and in return you get taxed on the BIK which is taken out of your monthly wage.

Oh and generally you get a decent choice of car and get a new own at least every 3 years

I'd hate to have a company car........................

[Andy_L]

Originally Posted by CraigGreen

manufacturers RRP?

Yes

[jamied]

Originally Posted by CraigGreen

So you need a degree in boredom to understand how the tax is calculated on a company car?.

its to keep accountants like me on my toes every year.....oh...hang on..jacked that in and im a spanner monkey now...

[bennymac36]

i think if you all had the choice of a company car where they dictate many of the selection criteria, taxed as a benefit irrespective of the mileage or a cash equivalent of around £700 per month i'm sure you would choose the cash.

[Giles]

Originally Posted by bennymac36

i think if you all had the choice of a company car where they dictate many of the selection criteria, taxed as a benefit irrespective of the mileage or a cash equivalent of around £700 per month i'm sure you would choose the cash.

??? if you're saying they'd give you £700 a month then that is equal to roughly a £45,000 car.

So.... we're talking about those of us offerd BMW's are we?

I drive a £20k for focus with a load of extras on it. It works well for me as although I get charged tax I do loads of private miles so depreciation and serviing and maintenace would kill me on a car I bought or leased (remember lease costs increase with annual milage).
Also I love the fact of no hassel at all. Always have a car and always get it repaired whenever needed. In my busy life there is a lot to be said for having something I simply don't have to worry about.

Oh - it's a diesel and I get 12p a mile. Based on what it actually returns per mile in an AVERAGE business run - which is about 38 to 40mpg (way less than the book - surprise surprise) then I'm still ok on that. Over 1 p more on a litre though and I'll be stuffed.

Petrol drivers get 15ppm IIRC.
Private is 35p I think.

Anyhw - another 12 months and I'm ordering an Audi S4 as a company car. And II won't mind paying the tax on that one either.

[MSG]

Originally Posted by calibrav624v

13p a mile is piss poor. My mrs gets 35p per mile

13p shocking

Yes but your misses might be providing her own car as well, and only for an occqasional use.

Back in mid eighties to the begining of 90s, I used to charge 20p/mile with my own vehicle.

[bennymac36]

Originally Posted by Giles

??? if you're saying they'd give you £700 a month then that is equal to roughly a £45,000 car.

So.... we're talking about those of us offerd BMW's are we?


Oh - it's a diesel and I get 12p a mile. Based on what it actually returns per mile in an AVERAGE business run - which is about 38 to 40mpg (way less than the book - surprise surprise) then I'm still ok on that. Over 1 p more on a litre though and I'll be stuffed.

Petrol drivers get 15ppm IIRC.
Private is 35p I think.

Anyhw - another 12 months and I'm ordering an Audi S4 as a company car. And II won't mind paying the tax on that one either.

Giles my company pay for the lease car plus insurance if i opt out they give me a cash eqivalent like most which is pre taxed on your salary. my main issue stands as its meant to be a perk and i get 10p per mile so i cant see it as being one. i have considered a van instead though ..lol