Re: New Electrical Regs - Again

I've never quite understood this. Presumably if you pay company car benefit, you don't need a car of your own? Unless, of course, you wouldn't normally have a car - or would run an old banger doing all the repairs etc yourself.

Absolutely. I really don't think those who complain about being taxed on a company car have ever worked out the costs of running their own - like for like.

But I didn't want it. It's full of drawings, tools, test equipment and spare parts. I use my wife's car at weekends and don't have to travel to work.

In the first instance the IR reduced my allowances by £7.4k, this for a 5 year old Fiat Ulysse (80k miles) worth about £4.75k ! I got it reduced to £4.4k but that still seemed a raw deal.

I now don't run a company car and claim the mileage allowance. I take it you've investigated that option, it's attractive if you do a lot of business miles in a car that's cheap to own/run.

DG

I made another post at the same time as this one of yours that addresses this point in my particular circumstances.

But I would add it's a bit of a strange concept IMO to have to pay

*Income* tax on money you've never received because you've not had to spend it, esp. if it costs your employer little or nothing. I hope the chancellor doesn't go any further with it I don't want to pay *Income* tax on my oscilloscope + multimeter + PAT tester USW USW.

Certainly, or your wife runs a car

The new C.Car ruels are also unfair IMO in that they don't distinguish between essential car users who have the benefit of incidental private use of a company car, and cars supplied entirely as perks.

DG

The reasoning is that the company makes available to you a car, and you get to use the car privately as well as for business. The private use element counts as income and is taxed.

If you don't (ever) use this car for non-business purposes, then you can ask your employer to forbid you to use it except for business. Then it becomes "not available" for private use and should not count as a benefit and not be taxed as income.

AIUI, ICBW, YMMV, E&OE, etc, usw.

The reason you pay tax on a company car is that it's assumed you get private use from it, so it's a benefit in kind.

And they do tax similar things. If I get protective clothing supplied, it's considered a benefit as it could be used for leisure. Similarly, a taxi paid for to take me home from work after public transport has finished is also considered a perk and taxed - even although I might have a season ticket for public transport. Same with an hotel provided for overnight accommodation when working away from home.

Strangely, these rules don't apply to MPs...

Well, presumably she needs one in her own right - otherwise she could use your company one?

Perhaps. But it's a very difficult thing to substantiate. If the vehicle is purely for company use, why not get a sign written van?

I tried that, the accountant said the IR wouldn't wear it (I'm the MD).

But I don't know that he actually went to the trouble of asking !

It's a pity because it's a large car to carry my tackle, and to be comfortable for the long journeys I do (1,130 miles the week before last)

:-(

DG

I do run my own -now, and my wife always did. I reckon I could make a profit out of the no profit mileage rate over 4 years by changing to a cheap to run car (Skoda Fabia diesel) and won't be sending 2k to the revenue every year. If you are running your own company there's another issue, the company gets all the running costs as well as, if it's someone else's company it's different

DG

If it's in the lowest CO2 band you now only pay 22/40% x 15% of the list price, i.e. £330 or £600 for a £10K car. If you do a lot of business mileage (I do almost none) then taking 40p/mile for your own cheap to run car probably makes more sense.

He shouldn't need to ask, but he should be able to tell you why. Maybe it's because, as the boss, you can forbid yourself private use, but could equally well re-permit it at the drop of a hat.

It seems to me that, provided your office is at home, so there is no possibility of commuting involved, then if you actually have your own separate car for private use, then a good case can be made for treating the business car as business-only.

In any case, wouldn't it be cheaper to run the business car privately and charge mileage rates to your business?

The micro management culture provides low grade jobs for the otherwise unemployable and performs the double purpose of raising revenue and depressing the unemployment stats.

Steve

Yep, and so a big enough hole in the wall to outside will be needed.

Well the idea is the same, the best practice is the same, but it does not come under the gas regs until a gas fire is fitted.

Thats strange, AFAIK if your employer requires you to work away from home, you shouldnt be taxed on that.

greg

I fitted a ceiling fan in the bedroom, but because it's a modern house with a low ceiling and I'm six foot tall it whirls away about eight inches above my head, so I have to try and remember not to pull off an item of clothing over my head when standing underneath!

On browsing the fitting instructions there is a section that says "Caution: do not use ceiling fans and open gas heating appliances at the same time in the same room"... it doesn't say anything about it not being legal.

I missed that, you aren't I've used hotels 2-3 times per week since

1974 and never paid tax. It has to be an expense that's related to the job that anyone would incurr (customer in Inverness, say), and not to the individual ('cos he lives in the back of beyond, say).

DG

I got the Gas check done and passed with an open Baxi and a ceiling fan. Council appointed CORGI man and he did not even comment on it.

Mind you I had to take down the fan to pass the electrical inspection as the light circuit was only 2 wire and the fan was metal :-(

(House was being rented to the council)

Andy

Why is it strange? Should employers start providing all manner of benefiits which are not taxable? It would get ridiculous.

Now you are just making it up.

But they did. That's why the BIK rules are as they are, because employers keep on TTP and loopholes had to be closed.

tim