August 11, 2023
If you’re about to get a new company car, then you’ll want to read this article! Our experts have put together the top three things you need to know about taking on a new company car to help you prepare.
1. The BIK Rate for Your Company Car
The first thing you need to know about your new company car is how much company car tax you will be paying on it. Company car tax will usually be deducted from your salary so it’s important to be aware how much your take home pay will be reduced by so that you can decide which car, if any, is the best choice for you.
Company car tax is calculated using three figures:
- The P11D (vehicle value)
- Company car tax rate of the vehicle (based on the vehicle emissions)
- Your personal tax rate
With the first two elements being based on the vehicle itself the car you are going to choose will have a significant impact on how much you pay which is why you’ll want to choose your company car carefully. The BIK rate will usually be something you know before you take delivery of the car.
2. Your Essential Contact Numbers
Another bit of key information you’ll want to get before you have your new company car is the contact details for key players.
The three numbers you’ll need will be for:
- Your fleet manager
- Your breakdown provider
- Your maintenance provider (if you arrange this rather than going through your fleet management team)
3. Your Responsibilities as a Driver
The third bit of information that you should know before you get your new car is what your responsibilities will be. This should be outlined in the documents you receive from your employer but you might also want to check with your fleet manager on what you will be required to do.
Your specific responsibilities will depend on your employer, your agreement with them and even the vehicle itself but generally it will include:
- Simple maintenance, such as keeping the fluids topped up
- Checking the vehicle condition and reporting any issues to your fleet manager
- Alerting your fleet manager to any warning lights that appear
- Generally keeping the car in a good and clean condition
- Driving safely and not misusing the vehicle
Enjoyed this article? Read more of our latest blogs below:
- Five Essentials for Your Fleet Vehicles
- Going Green: Fleet Edition
- Should You Take a Salary Sacrifice Car?
- Maintenance You Should be Doing on a Company Car
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