Low Mileage - Allowance or Company Car

davegilly

I put this in the motoring forum as well but its probably better here, hopefully someone can advise.

I've had a company car for 12 years, would have driven >45000km per annum so in the lowest BIK bracket.

So Covid arrived and I'm now at home 90% of the time and its new car time again. Ive asked the company about an allowance as my BIK is going to get much higher with the much lower mileage I'm doing now, probably 10K or less this year which puts me in the highest BIK range. The value the company has given me as an allowance is 7.5k.

Can anyone in a similar situation or tax genius advise which is the better option. With the allowance i was looking at a 2019 Volvo (€30K) and with the conpany car its a brand new Ford Kuga PHEV. Financially which one is better for me, short term or long term? Thanks for your help, I'm addled here trying to figure out what to do

CrazyFather1

I am doing low mileage and was looking at company car. So I got electric company car so 0% BIK. Now I think that is up in 2-3 years but would that work?

CrazyFather1

Petrol on company car doesn't make sense as you get the VAT back on diesel and not on petrol.

davegilly

CrazyFather1 wrote: »

I am doing low mileage and was looking at company car. So I got electric company car so 0% BIK. Now I think that is up in 2-3 years but would that work?

No - unfortunately there is no fully electric car on our vehicle list. PHEV and Hybrids only, none of which qualify for lower BIK.

davegilly

CrazyFather1 wrote: »

Petrol on company car doesn't make sense as you get the VAT back on diesel and not on petrol.

True. But this is the option they've given me. There are others on the car list which are diesel and other petrol but its the Kuga i will go for if i take the company car.

Livefornow

Asked company I work for a couple of years back, could I switch to an electric car as was paying top rate of bik. Initially got turned down (laughed at to be honest), but kept at them and have one just over a year now.
My take home pay went up €66 per week the week I got it. Absolute no brainer to me.
The job are now replacing all company cars with EV’s on renewal, will have 13 by year end.

CrazyFather1

davegilly wrote: »

No - unfortunately there is no fully electric car on our vehicle list. PHEV and Hybrids only, none of which qualify for lower BIK.

You need to ask, as someone else posted here when I first went to company they laughed at me. I then pointed to our "green" agenda. Once they asked the lease company they quickly added the options to the list.
Not sure why any company at this stage or lease company would not offer an electric car.
Plenty of grants available for the company as well as far as I know for changing over to electric

davegilly

Do you mind me asking what EV your companies provided? Is there anything that is long or reasonably long range in an estate or SUV size? Theae are the cars we have as options - saloons and smaller cars arent suitable for our work.

CrazyFather1

davegilly wrote: »

Do you mind me asking what EV your companies provided? Is there anything that is long or reasonably long range in an estate or SUV size? Theae are the cars we have as options - saloons and smaller cars arent suitable for our work.

I went in 2019 and choice was really limited so I went with eGolf as it was best.
The choice now is a lot better.
I am not up to speed on what is available now so best to ask on electric car forum but a couple of crossovers available.
If you can't get electric then just go diesel unless you can keep within the small range of a PHEV which in reality is 30km on battery before the petrol will kick in.

Summer8181

Is there a mileage limit minimum or maximum on company EV? Do you keep a record of your business and personal mileage?

MunsterAllDay

davegilly wrote: »

I put this in the motoring forum as well but its probably better here, hopefully someone can advise.

I've had a company car for 12 years, would have driven >45000km per annum so in the lowest BIK bracket.

So Covid arrived and I'm now at home 90% of the time and its new car time again. Ive asked the company about an allowance as my BIK is going to get much higher with the much lower mileage I'm doing now, probably 10K or less this year which puts me in the highest BIK range. The value the company has given me as an allowance is 7.5k.

Can anyone in a similar situation or tax genius advise which is the better option. With the allowance i was looking at a 2019 Volvo (€30K) and with the conpany car its a brand new Ford Kuga PHEV. Financially which one is better for me, short term or long term? Thanks for your help, I'm addled here trying to figure out what to do

Will you get fuel allowance/card with car allowance?