Do I have a legal right to a company car?

Question

After having a company car for 6 years they want to stop me having one and give me an allowance instead which relates to a substantial pay cut ( the allowance will not allow me to have a similar spec vehicle )and leaves me without a car.

Just to confirm..I have to use the car as part of my job, not just getting to and from work. The spec is irrelevant really, If you r boss wanted you to take a pay cut , I presume you wouldn't be happy! thanks for the sensible responses.

Thanks for the reponses, I have done the sums, inlcuding the tax saving from P11d etc, the rebate on fuel, (no fuel card), the company will pay 10p a mile. The company is a small but good one. I'm not about to leave my job because they have p*ssed me off, I have more repect than that. I'm not after sympathy from the timewasters that have posted here as well, just a simple question of rights. The car is used for personal as well, legally. I was originally told two weeks ago that because of my loyalty to company etc I could continue with a car, however the boss has changed his mind on the policy, this affects around12 of us in the company, unfortunately there are younger members of staff who this is going to impact on more due to higher insurance costs to them after losing their NCB. I know some insurance companies will take into consideration company car usage.

Answer 1

Unfortunately no ..

All these people busting your chops have obviously never had a car oriented job. I've been a road warrior for a company and if you're driving more than 20K miles per year I don't see how getting an allowance is equitable. Figure your private car is depreciating faster than you're driving. Unless you buy a old Taurus and drive it to a million miles, you're coming out with a pay cut.

I'd chat with your employer then update my resume'.

As far as these other haters posting here .. every time somebody gets a pay cut or loss of benefits everyone else says suck-it-up..that's life..now your just like the rest of us.. You've been fed a steady line of corporate crap your whole lives, every time I check Wall Street news it's about record earnings and corporate excess. Now some working schmo losses benefits and all you have to say is too bad? That's a load and every time someone shrugs and takes it we all go a little more down hill. So what if he drives a company car? Does this mean his company owner will have to settle for the 6000 sq ft house instead of the 7500? You're a bunch of corporate tools!

Answer 2

This is a variation to your employment contract, although a company can make a change, they have to give you notice, but no company "has" to give you a vehicle unless it is specialised work tool.

However, have you taken into account all of the tax benefits of giving up your company car and are you sure that you will be worse off. For example

How much are you paying in tax for your company car currently (P11D value of current car at CO2 emissions tax rate at your tax rate eg, car at value of £20000, with a taxable emissions of 24% and you are a higher rate tax payer will mean that you are paying £160 per month - your salary will increase by this amount)

How much allowance are you going to get? £300 per month gross has to have your tax taken out so you are left with about £180

Then you have to account for business miles, if you have a fuel card currently then you are being taxed on this if you are given your private mileage (unless you pay a contribution to private miles or get reimbursed for miles done). If you don't keep your fuelcard and get paid a pence per mile, the inland revenue currently allows you to claim back up to 40pence per mile for the first 10000 business miles and 25pence for anything over the 10000miles. Your car should not cost this much for fuel and if you don't get the full amount you will be able to apply for a rebate or re-coding of your tax code to your benefit.

So already you would have about 340 to spend, plus you would be making on the fuel, unless you are driving something flash and lapping the world, it doesn't sound so bad???? If anything if you aren't able to get the same level of car by doing this, then you could always go back and ask them for more money and for them to justify it.
Check out the calculations at
http://cccfcalculator.inlandrevenue.gov.uk/CCF0.aspx

Companies generally do this exercise on a "cost neutral" basis, so they take into account what you have now and what you would then be able to afford. They also have a health and safety liability, to ensure that the vehicle that you are using is safe for work and suitable for the job that you do.

Many people automatically assume that they are worse off by giving their company car back - make sure that you have all the facts before you dispute it.

Answer 3

You must be kidding?

1) Its their car, they supply it to you just like a desk or a chair or any other accessory in the office.

2) Presumeably it is used only for business . You letter implies that, since you have no other car, you have been using a company car for personal business. It is very rare for a company to do that knowingly considering the liability issues that attach with such permission.

3) If you feel you need better car then, just like any other employee, you take that up with your supervisor or manager. If they agree then you get it.. if they don't then you settle for what the company gives you - if it impacts the level of your work you then document it so that you can demonstrate the need for a better car.

4) As for a personal car.. considering you have had a free car for your employment period, you should have banked the money that you would have spent (or a portion of it) knowing that it was inevitable that someday you would no longer have a company car. Poor planning....

Sorry to sound so hard, but welcome to the real world ...

.

Answer 4

You do NOT have a legal right in law to a company car HOWEVER you should check your contract of employment. If that contract states that a company car will be provided then your employers are trying to amend your contract and you could be able to claim 'breach of contract' and damages.

Please note that if a company car is provided then your tax code may have been reduced to take into account 'benefit in kind' and if the benefit is withdrawn then your tax code may increase and you pay less tax.

Answer 5

I am looking for my miniature violin so I can play for you a very miniature sympathy tune. Of course you have no right to a company car. It's a perk which you were able to enjoy for six years, and now they are taking away that perk.

The days of company cars are coming to an end. Most corporations are approaching employee travel the way your company is NOW. Bite the bullet and buy or lease a car and continue on with your job.

Answer 6

Check your employment contract and see it says, it is probably something you would be expected to renegotiate with the company each time your contract was up for renewal and they will probably have a clause in there saying that they can take the car if you and pay you a travel allowance instead if they want.

Answer 7

At my company they pull people from the field all the time and take away their company car. You get a 1 time pay out but other than that you are out of luck. They are within their rights.

Answer 8

A company car is usually a perk of the job and can be withdrawn at any time - just as in a retail environment, staff discount can be reduced or withdrawn. If you have union representation, go to your union. You only have a case if it is impossible to perform your normal work duties without a car.

Answer 9

What does your contract say? And by the way, a company car is a perk most of the world doesn't have, I doubt if you'll get much sympathy from anybody about the loss of the car.

Answer 10

I've done both ways. The company car is better than being paid for miles. It's legal (what they're doing). It's your "right" to find another job.