|
||||||||
HR advice - Car Allowances / Company Cars |
![]() |
|
|
|
Thread Tools | Search this Thread |
|
|
#1 |
|
Forum Member
Join Date: May 2003
Location: Derby, UK
Posts: 23,456
|
HR advice - Car Allowances / Company Cars
We have no HR, she left about a month ago and the boss said I could do the HR stuff (letters and that) til we got someone in.
I've no idea or experience or know a single clue about HR. So, our company is changing from company cars to a car allowance and I need to find out what sort of notice we need to give employees. I've googled as you do, but all I've found is advice articles to employees and TBH, Ive got my normal day job to do and can't waste hours looking for this info. Can anyone help - just point me to a website? |
|
|
|
|
Please sign in or register to remove this advertisement.
|
|
|
#2 |
|
Forum Member
Join Date: Apr 2005
Location: colchester
Posts: 15,350
|
Make this your bosses problem.
|
|
|
|
|
|
#3 |
|
Forum Member
Join Date: Apr 2005
Location: colchester
Posts: 15,350
|
Seems to me you need knowledge of employment law, your company policies, your company procedures.
If you get it wrong it could result in employees making claims. I would suggest to the boss that they buy some one in for 2 or 3 days as it is very important to get it right. |
|
|
|
|
|
#4 |
|
Forum Member
Join Date: Apr 2007
Location: Lat: 52.666; Long: -1.2833
Posts: 6,501
|
Quote:
We have no HR, she left about a month ago and the boss said I could do the HR stuff (letters and that) til we got someone in.
I've no idea or experience or know a single clue about HR. So, our company is changing from company cars to a car allowance and I need to find out what sort of notice we need to give employees. I've googled as you do, but all I've found is advice articles to employees and TBH, Ive got my normal day job to do and can't waste hours looking for this info. Can anyone help - just point me to a website? *=or they could out-source the project. |
|
|
|
|
|
#5 |
|
Forum Member
Join Date: Apr 2005
Location: colchester
Posts: 15,350
|
Who is taking care of the Finance side of things?
How long is the lease period and when will it expire? Is early termination possible and if so what is the cost? Do all employees have the same start and finish times for the lease? Are they on different types of leases? What about the impact on car insurance for the employees? Given CRTHD experience, this scheme could take a while to deliver, so it needs someone with the right experience and knowledge to deliver it. |
|
|
|
|
|
#6 |
|
Forum Member
Join Date: May 2003
Location: Derby, UK
Posts: 23,456
|
Oh Christ :'(
WRT the leases, i *think* they're about half way through a 3 year contract. I think the boss has accepted he'll have to pay the remainder of the lease, just wants no more leases and everyone on car allowance and wants it to happen sooner rather than later, so he has asked for me to find out what sort of notice period we need to give employees to be able to buy / lease themselves a half decent car. (I'm not doing finance, someone else has taken over the payroll side of things, thankfully) |
|
|
|
|
|
#7 |
|
Forum Member
Join Date: Oct 2006
Location: Brighton, UK
Posts: 9,427
|
x
The remaining time on the leases is not the problem, the main issue is whether or not the employees are contractually entitled to their company cars, if they are the company would be in breach of contract if they withdrew the cars without each employee's consent to the variation of their employment terms and there is no length of notice period that would change that. That issue alone makes this a job for a professional.
|
|
|
|
|
|
#8 |
|
Forum Member
Join Date: May 2004
Location: Reading
Posts: 27,903
|
You are aware that company cars are a taxable benefit aren't you? So ending the company car plan will have to involve the tax man as well as the employees.
I would say you need to tell your boss that he really should be getting someone who has the necessary knowledge and experience of such matters to sort it out. As the last thing he wants is HMRC knocking on his office door!!!
|
|
|
|
|
|
#9 |
|
Forum Member
Join Date: Apr 2005
Location: colchester
Posts: 15,350
|
When I say finance, I mean the Financial implications of the lease and potential termination (if allowable), ie can the company afford it at the moment, then there is the accounting requirement for your annual accounts.
You also need to think about new employees and what appears in a job advert and what is in their employment contract. Will existing employees be offered a car loan? Will you look at these employee salary sacrifice lease schemes? Will existing employees be offered the option of taking on the existing lease (if allowable). As above "Your boss needs to put the change on hold until they've hired someone with the necessary skills / experience*" |
|
|
|
|
|
#10 |
|
Forum Member
Join Date: May 2003
Location: Derby, UK
Posts: 23,456
|
Thank you for all the replies, i really have no knowledge or interest in gaining the knowledge for the things everyone has mentioned like contract variations, taxable benefits, loans, sacrifices etc.
I have the contact details of our old HR manager, so I think I will email her, hopefully she will say pretty much what you have all told me and i can go to the boss and say - "Soz, beyond my remit" |
|
|
|
|
|
#11 |
|
Forum Member
Join Date: Feb 2011
Posts: 25,224
|
Quote:
Thank you for all the replies, i really have no knowledge or interest in gaining the knowledge for the things everyone has mentioned like contract variations, taxable benefits, loans, sacrifices etc.
I have the contact details of our old HR manager, so I think I will email her, hopefully she will say pretty much what you have all told me and i can go to the boss and say - "Soz, beyond my remit" |
|
|
|
|
|
#12 |
|
Forum Member
Join Date: Jun 2008
Posts: 4,219
|
Quote:
Thank you for all the replies, i really have no knowledge or interest in gaining the knowledge for the things everyone has mentioned like contract variations, taxable benefits, loans, sacrifices etc.
I have the contact details of our old HR manager, so I think I will email her, hopefully she will say pretty much what you have all told me and i can go to the boss and say - "Soz, beyond my remit" This is a highly complex area and should definitely sit with the new incumbent as it goes to the heart of the employment contracts of the affected individual. My advice is stick with the 'beyond my remit' and throw it back at the MD. |
|
|
|
|
|
#13 |
|
Forum Member
Join Date: Jun 2008
Posts: 4,219
|
whoops duplicate post
|
|
|
|
|
|
#14 |
|
Forum Member
Join Date: May 2003
Location: Derby, UK
Posts: 23,456
|
ooops, sent her an email before I saw the previous 2 replies.
if i were her, id tell me the same as what you've all told me! |
|
|
|
|
|
#15 |
|
Forum Member
Join Date: Mar 2000
Location: North Devon
Posts: 12,642
|
You need to remember the tax effect on different employees may well be different depending on their personal circumstances. As other have said there may be bits in their contracts of employment. It really can be a complex area and what is good for one isn't necessarily good for someone else.
There will because this asked which you won't know the answer to. Your boss should get his accountant to review it all first. There are loads of possible permutations in relation to cars and allowances. You cannot possibly deal with this yourself. By the way is private fuel currently provided as well? |
|
|
|
|
|
#16 |
|
Forum Member
Join Date: Mar 2000
Location: North Devon
Posts: 12,642
|
Quote:
When I say finance, I mean the Financial implications of the lease and potential termination (if allowable), ie can the company afford it at the moment, then there is the accounting requirement for your annual accounts.
You also need to think about new employees and what appears in a job advert and what is in their employment contract. Will existing employees be offered a car loan? Will you look at these employee salary sacrifice lease schemes? Will existing employees be offered the option of taking on the existing lease (if allowable). As above "Your boss needs to put the change on hold until they've hired someone with the necessary skills / experience*" |
|
|
|
|
|
#17 |
|
Forum Member
Join Date: Mar 2000
Location: North Devon
Posts: 12,642
|
Forgot to add the VAT treatment needs looking at as well.
|
|
|
|
|
|
#18 |
|
Forum Member
Join Date: Apr 2005
Location: colchester
Posts: 15,350
|
Quote:
Forgot to add the VAT treatment needs looking at as well.
'reconsider'.
|
|
|
|
|
|
#19 |
|
Forum Member
Join Date: Mar 2000
Location: North Devon
Posts: 12,642
|
The boss should want to get it right as much as anyone. There will be loads of questions from the employees which the OP won't be able to answer. The answers won't necessarily be the same for different employees. Will the allowance be paid as a lump sum of as monthly amounts. Will the employee be responsible for running and maintaining the vehicle.
Employee may look at HP, PCP, Finance Lease, BCP and so on. |
|
|
|
|
|
#20 |
|
Forum Member
Join Date: Jun 2008
Posts: 4,219
|
The Op's opening post included "the boss said I could do the HR stuff (letters and that) til we got someone in".
As an HR consultant I think it demonstrates that some MDs have no idea what employment law and employment rights involve, and much of the HR role is keeping the engine of the business - the people - running smoothly. There is also a question mark over the DPA and access to personnel files which the MD seems to have forgotten! |
|
|
|
|
|
#21 |
|
Forum Member
Join Date: May 2003
Location: Derby, UK
Posts: 23,456
|
Quote:
I think the OP has enough ammunition for the boss to...
'reconsider'.![]() Quote:
The Op's opening post included "the boss said I could do the HR stuff (letters and that) til we got someone in".
As an HR consultant I think it demonstrates that some MDs have no idea what employment law and employment rights involve, and much of the HR role is keeping the engine of the business - the people - running smoothly. There is also a question mark over the DPA and access to personnel files which the MD seems to have forgotten! I think the reason it's been handed over is because Im "office manager". I keep telling him, Ive no idea about this stuff, i'm not trained etc, got no quals etc.... Not to mention I have my own work to do - I had to do termination letters for 7 people and also new contracts for others (this was just changing company so nothing too strenuous) but he's now asked me to do an audit on all employee files to let him know notice period, salary, commission and make sure there's a signed contract in there (after he asked for someones file and found there was no signed contract in there). I'm sure everyone doesn't want me knowing their details, I wouldn't be happy if someone who is not in accounts knowing all my personnel stuff. *big sigh* |
|
|
|
|
|
#22 |
|
Forum Member
Join Date: Jun 2010
Posts: 6,547
|
I worked somewhere where the boss had "read somewhere" that a liveried company car was exempt from Company car tax for the employee
Only when they had bought the cars and had them painted did they bother to contact HMRC - who told them that it only applied to vans - not cars. As they had promised the drivers no Company car tax - (and had amended their contracts) they had to give them a huge pay rise equivalent to the tax they were now going to pay. Which then resulted in the rest of the employees being disgruntled. I even offered to have the company logo tattooed on my arm in return for them paying my income tax. I was told that was "completely different and in no way the same" as someone having a car with the company logo on it having the tax they owed paid for by the Company OP might be worth checking what the boss is actually expecting from this change, or whether he has hold of the wrong end of a stick. |
|
|
|
|
|
#23 |
|
Forum Member
Join Date: Aug 2004
Location: Oxford
Posts: 5,305
|
Quote:
I worked somewhere where the boss had "read somewhere" that a liveried company car was exempt from Company car tax for the employee.
When I started work, an equally low-paid school-leaver drove his dad's brand new company car. Only because his dad didn't particularly like driving a lurid pink car promoting vaginal freshening products. It was still better for his son than taking a bus though! (At the time, we had regular complaints about the car "lowering the tone" in the conservation area where we worked...) |
|
|
|
|
|
#24 |
|
Forum Member
Join Date: Apr 2005
Location: colchester
Posts: 15,350
|
Quote:
OP might be worth checking what the boss is actually expecting from this change, or whether he has hold of the wrong end of a stick. Whether they apply is a matter of detailed consideration. |
|
|
|
|
|
#25 |
|
Forum Member
Join Date: Mar 2000
Location: North Devon
Posts: 12,642
|
Tealady is correct. The whole area is a minefield. We used to have software to work out the best position for a company and for an emloyee. Even back then there were at least 36 different variables to consider. There have been many changes since then and the benefit in kind rules change virtually every year as well.
|
|
|
|
![]() |
|
| Thread Tools | Search this Thread |
|
All times are GMT. The time now is 23:49.



'reconsider'.

I think the reason it's been handed over is because Im "office manager". I keep telling him, Ive no idea about this stuff, i'm not trained etc, got no quals etc....