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bigduckontax
bigduckontax, Accountant
Category: UK Tax
Satisfied Customers: 2993
Experience:  FCCA FCMA CGMA ACIS
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I got a new job recently, it's a regional support role,

Customer Question

I got a new job recently, it's a regional support role , my contract clearly states it's a work from home job and my office location is : my home address. But I will Have to visit some outlets as monthly visits or meet managers in their outlets go for
meeting which is not in my office /head office location . It's else where for eg: supermarkets like Asda and tesco ( we have out lets here ) . So I had to accept the job with a company car benefit and fuel (which is about 9pence per mile) . I want to know
if I have to pay tax on this ? As in the contract it does not specify about car for personal use it just says you will be provided with a car for visiting external sites when required. I have two questions because I am almost paying 200£ extra on tax even
excluding the NI and income tax though my earnings are just £24000 per annum. I am getting just £1300 after all deductions. My questions are : (1) am I required to pay tax for this benifit when my work address is my home ? (2) how much tax will I be paying
, I read it's around 20% on car and fuel ? Does this mean I will pay 25% normal tax + 20% car tax which is altogether around 40% overall tax ? I am very confused and worried no point laying 40% tax when I earn peanuts anyways ! I looked thru all the websites
and hmrc but just couldn't find any information anywhere . Btw the car they offered is a golf 1.6 Eco diesel. Please let me know what exactly can I expect!
Submitted: 1 year ago.
Category: UK Tax
Expert:  bigduckontax replied 1 year ago.

Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.

You can read the whole gamut regarding the provision of a car by an employer here:

https://www.gov.uk/tax-company-benefits/tax-on-company-cars

I would draw your attention to the opening sentence:

'You’ll pay tax if you or your family use a company car privately, including for commuting'

As your place of duty is your home no commuting is involved. Providing that there is no private use of the vehicle then its provision is not a taxable benefit in kind.

I do hope that my reply has been of assistance.

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