Company van, do I need to keep private?

Potential-Monke

I will be starting with a new company soon and for the first time I will have a company van. Small Combo job, but I'm covered for private use too. Aside from not understanding BIK, do I need to keep my own private car and insurance so I don't have to start over if in the future I don't have a company van anymore? Web searches are inconclusive... if it complicates matters, my employer is UK based, van is a fleet hire through a 3rd party van hire company, Irish vehicle, UK insurance.

Seems private NCB expires after 2 years, but can I count claims free driving on the company van towards private when I need to change back? I don't actually need a private car for now, but even though it is expensive it may be cheaper than starting from scratch to keep it ticking over. I dunno. 41, 17 years clean driving in my own name.

Damien360

No insurance company counts your time driving a fleet vehicle as having a policy in your name. So for ease of keeping your no claims, I would keep your own car and keep it insured.

Separately, if you happen to buy a van later in life and use it privately, it won't count towards any no claims should you start a car policy later. Ridiculous but that's the insurance industry.

BIK. Vans are hit at a standard 8% rate. So let's say the van is worth 30k (new value only,.second hand is not counted and it's always at that new price regardless of age), take 8% of that per year that you must pay in tax. So that's 2400 per year or 200 a month. But if you are paid at the upper tax band, that's not what comes out of your pocket. They add 200 to your wage on one side (tax that) and take it off the other side and that has the effect of reducing your tax free allowance which means you pay about 100 a month out of your pocket for having the van in tax. Your P60 will show extra wage of 2400 on top of your salary but you didn't get that.

Potential-Monke

That answers everything and more, thank you muchly! Seems like a slightly unfair tax, but c'est la vie!

JVince

In some cases they will allow it.

AXA have certainly done so as I had to provide a letter for an employee.

He was 4 years out of his own insurance, drove a van and then went elsewhere that did not provide a vehicle.

AXA wanted proof that he was the primary driver, did not have any other insurance and did not have any claims or accidents.

They gave him full ncb back.

So check with your insurer and ask them

chrisd2019

https://www.boards.ie/discussion/2058374041/company-van-do-i-need-to-keep-private

At your age you are a good client for an insurance company, therefore in the future you may be granted some credit for your past including company vehicle driving history provided it stays claim free.

To keep you private NCT you need to keep a private vehicle to have actively insured, this is going to cost you regarding maintenance & depreciation also.

galwaytt

https://www.boards.ie/discussion/comment/122712919#Comment_122712919

Yes, a friend of mine had to start at 0 NCB last year after 17years on a company van.

Keep your private cover, and put it on the cheapest yoke you can find.