Company Car Or Car For Social And Business Uses? - Money Soldiers

Company Car Or Car For Social And Business Uses?

For a lot of professionals, owning a car is not debatable. You need to commute to your workplace and, unless you live in the middle of town, there is no safer way than driving a car. However, more and more employees are faced with a difficult question, namely, should you get a company vehicle or should you use your personal car? This is an important question for anybody who’s a freelancer or in the process of opening their own company as this will dramatically affect your financial responsibilities. Leaving for now the worry of whether or not to invest in an electric car – to reduce pollution levels and the use of fossil-fueled engines – out of the equation, the big question of whether to own or car or let your business buy one reflects on your sense of responsibility, your intention to stay with the business and your overall perceptions of company perks. Is there a right answer to the question?

It’s up to you to decide:

Know what is deductible

Ultimately, whether you use your car for business or whether you’re driving a company car will affect the way you prepare your taxes. It’s not uncommon for people who are unfamiliar with business travels to get confused about what can be deducted from their taxes. Ultimately, you might want to clarify details with your company if you’ve been provided with a vehicle – it’s likely that you can arrange for payback for the money you invest in the vehicle – meaning that you don’t need to make it a part of your taxes. Anybody using their individual car for business might be allowed to apply mileage deductions in specific circumstances – unless these are applied at a company’s level already. You might be saving money with a company vehicle. However, you need to check your contract for usage limitation. Therefore, a personal car might be the best solution for both tax and lifestyle perspectives.  

Understand your responsibility

Ultimately, accidents happen whether you’re driving your car or a company vehicle. If you’re unsure who’s to blame for faults that might have lead to the car accident, you might want to get information from professionals. More often than not, the company might be paying for the car insurance cover but shift the blame onto you for negligence – such as missing out on maintenance appointments – or dangerous driving. It’s a tricky situation in which you might require legal support to protect your rights and eventually prove how the company might be involved in the accident.

Is a company car still a thing anyway?

The real question that most urban dwellers ask is whether they need a company car. Indeed, giving a car as a perk is still popular in medium and large companies, but few employees are interested in using a company car when public transport and remote working options are available. For employees who are considering leaving a company, it’s best to refuse the bonus and look for a way out rapidly. For companies, it’s important to understand that your team might need perks that are more adapted to their needs.

From knowing how to put your car in your taxes to understanding what to do if a company car is involved in an accident, the challenges of owning a car are multiple. Should you accept a car as a business perk? It depends on your professional career and personal preferences. But one thing is sure: You can’t dodge driving responsibilities!

Jesse Fin
 

Jesse worked as a journalist for a large tv station in Korea in her past life. She now works full time at home as a blogger and loves to help her friends manage their personal budgets.

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