Since Gordon Brown decided that anyone who is required to drive a company car as part of their employment is a two horned monster who deserves to be punished, company cars have gone from being a perk to becoming potentially a huge tax liability in many cases – or have they?

So what is the best solution, Car or Cash? As with anything that the authorities get involved with especially HMRC, it’s nowhere as simple as it might otherwise be!

For the purposes of making a meaningful comparison, we’ve used a mid range example car and compared like for like usage:

Vauxhall Insignia, 2.0L CDTi ES
Annual business mileage – 20,000
Annual private mileage – 5,000

The comparisons are between:

• Fully expensed company car
• Car allowance – £4,800 per annum, plus 14p per business mile
• Own car mileage allowance – 46p per business mile

The winner in this competition is a higher rate tax payer who rents (contract hires) the Vauxhall and claims 46p.  He’s better off to the tune of £444.24 per annum!

The overall loser is the higher rate tax payer driving the same company car who loses out to the tune of £2,911.56 per annum.

Actually the lower rate tax payer getting a fully expensed Vauxhall Insignia pays £121.32 a month for the benefit – not bad value when you consider the significant cost of running a car.

A summary of the saving and the costs shows:

For a more detailed analysis with specific calculations go here.

Of course – if you were to buy a more tax efficient model, these figures would change. However there are ways to achieve more tax-efficient motoring and still have a company car without the dreaded K tax code.

Should you wish to receive further advice on this subject, or be interested in more creative solutions please do not hesitate to contact me

• Working for a highly successful, National Broker based in one of their East based offices.
• This is initially a 3 month fixed term contract.
• You will be required to compile and deliver both technical insurance training and soft skills to employees.
• Training could be delivered to larger groups or on a 1:1 basis in any of the South East offices.
• You must have strong technical Insurance knowledge as well as previous training experience.
• You will ideally possess the Cert CII qualification as a minimum.

For more details call Sophie Simmonds on 01275 813019 quoting reference SS/J010504

• Assisting with the day to day management of a portfolio of established commercial accounts.
• Renewal and retention of existing accounts.
• Obtaining new business quotations and handling some new business cases.
• Must be commercially aware, as the many leads/referrals will be passed by existing customers.
• Must have previous commercial account handling experience gained from within a broking environment.

For more details call Stephen Mallaband on 01275 813025 quoting reference SM/J01025

• Working for an internationally renowned loss adjusting and claims management group.
• You will have responsibility for your own caseload of third party claims within the field.
• Responsible for establishing liability on each case.
• Mainly EL and PL claims although some Occupiers and Product Liability claims.
• Must have existing external experience within a similar role.
• Proven ability to handle the full range of EL/PL claims including claims involving third party property damage.

For more details call Sophie Simmonds on 01275 813019 quoting reference SS/J010394

• Working within the corporate team of this major insurer, you will handle your own portfolio of files from start to finish.
• Your handling authority will be based upon experience and skills, but the department handles files up to £250K, so opportunity to handle large losses.
• You are required to have Motor PI experience, although applications from candidates with excellent Third party experience will be considered.
• Competitive salary, along with industry leading benefits and vast career opportunities.

For more details call Adrian Richards on 0121 353 9550 quoting reference AR/J10459

• Assisting with the day to day management of a portfolio of established commercial accounts.
• Renewal and retention of existing direct accounts.
• Obtaining new business quotations and handling some new business.
• Many leads will be passed to you by existing customers.
• Must have previous commercial account handling experience gained from within a broking environment.

For more details call Sophie Simmonds on 01275 813019 quoting reference SS/J010468

• Assisting with the day to day management of a portfolio of established commercial accounts.
• Renewal and retention of existing accounts.
• Obtaining new business quotations and handling some new business cases.
• Must be commercially aware, as the many leads/referrals will be passed by existing customers.
• Must have previous commercial account handling experience gained from within a broking environment.

For more details call Stephen Mallaband on 01275 813025 quoting reference SM/J01066

• Focusing on mid to high net worth business across the South West region.
• Existing book of business is available to maintain and build on.
• Candidates will be considered based anywhere between Cheltenham and Devon.
• 60% of your role will be field based and 40% based in one of the region’s offices.
• You must have previous Insurance Account Executive experience.
• Knowledge and experience of the mid to high net worth market.
• Full UK driving license required.

For more details call Sophie Simmonds on 01275 813019 quoting reference SS/J010378

• Law firm with impressive City Centre Offices is currently seeking an experienced Disease Claims Handler.
• Files are handled for major Insurers and Commercial Clients, mainly all pre-litigated.
• High standard of training and development, with a structured and varied career path.
• To apply for this role, it is essential you have previous Disease claims experience, ideally from an adjuster, solicitor and/or Insurer background.

For more details call Adrian Richards on 0121 353 9550 quoting reference AR/J10521

• An international, market leasing Insurance, Risk management and Financial Services organisation.
• Working within the Japanese Commercial Business Unit.
• Negotiate renewal terms, mid – term adjustments and cover extensions.
• Dealing with Property, Liability, Motor Fleet, D & O, Crime & Engineering products.
• Identify improvements in client risk and insurance programme design.
• Must have previous commercial account handling experience gained from within a broking environment.
• Knowledge and experience of handling Japanese business in the London market would be an advantage (but not essential).

For more details call Sophie Simmonds on 01275 813019 quoting reference SS/J010346