Page 45 - Fleet

Company Car Drivers Bulletin 2022 – Edition Four

How much tax do I pay for my company car? The fleet team receive regular queries from colleagues

asking about the amount of tax they pay on their company cars.
• This can be calculated using the “Car BIK” figure on your payslip. Depending on the rate of tax

you pay, you will pay either 20% (lower rate) or 40% of this figure each month.
• An example is if the BIK figure was £750, a 20% tax payer would pay £150 per month and a
colleague paying 40%, would pay £300.
• What rate of tax do I pay? As a basic rule, if you earn more than £50k per year, you will pay 40%
tax. If you earn less than £50k, you will be paying 20% tax. https://www.gov.uk/income-tax-rates

Business Mileage Colleagues are reminded of the importance of submitting accurate monthly business mileage
submissions. All submissions are being closely monitored and any anomalies are being investigated.
One of the main causes of inaccurate submissions is when colleagues leave it until the last minute and rush to
complete it when the deadline is looming. This does result in inaccurate trip data being entered (distances,
dates and postcodes), causing anomalies to be flagged up and requiring investigation.

Colleagues should update their business mileage on a weekly basis as a minimum. Ideally it should be done
using the TMC App whilst the journey is being completed

Vehicle Dashcams To improve the safety of colleagues, all new cars now come equipped with an “offline”

dashcam, that is constantly recording the road ahead but is not connected to the internet. It overwrites the
data saved to the internal memory on a regular basis. However, in the event of a colleague being involved in a
vehicle incident, the camera will be connected to the internet and the most recent footage downloaded..

Other Frequently asked questions to the Fleet team

Do I need to tell HMRC if I change my company car? No, Fleet update the payroll team each month and any changes in the company car
tax are calculated internally

Why couldn’t I get a hire car when I needed one? As mentioned earlier in the bulletin, there is an ongoing shortage of hire cars, caused
by delays/challenges in the supply of cars to the hire companies. Colleagues are advised to only request a hire car if absolutely necessary

Why are electric cars so expensive, in my grade, they cost £10k more than the diesel ones? Manufacturers have invested heavily in
these cars so they are looking to recoup their money quickly, especially whilst demand is high. The overall lease cost of an electric car is
actually very similar to comparable diesel and hybrid cars, as the running costs are much lower; they are worth more at the end of their
lease and there is less emissions based taxation on them that HSS needs to pay