Using my personal vehicle for work... 15

[esloan]

I am working for a small consulting firm (civil). I really love working here, however one downside is that they do not have company vehicles.

I have no problem using my personal vehicle for transportation and keeping track of mileage for the measly 45 cents per mile etc.

The only REAL problem is that we are expected to use our personal vehicle for construction work with no additional compensation. This is the only company that I personally know about that works in this manner.

I'd say that the mileage I put on my vehicle nowhere near compensates me for the use. I am not talking about home to office etc, I am talking about office to jobsite, on the site and back. Strictly business use. I am typically out in construction full-time from April to November with heavy usage mid-May to mid-September. The work I do involves large developments and heavy-highway construction, so there is a lot of off-roading. If I don't drive my vehicle off-road, then the walk would be ridiculously long (a waste of productive time). I couldn't justify it.

I have actually brought this up to my supervisors, but they kinda shrug their shoulders and say that this is how it has always been. They say that they see no advantage for them to get any vehicles or compensate for usage above the government mileage rate. The VP's all have company leased vehicles, which is considered a perk because they really only use them for home to office driving. Only one out of the three actually uses it for billable projects and that is because he has one main client and spends a lot of time at their location. The others use for transportation to/from meetings with clients, not necessarily directly billable, but "getting/retaining" projects.

Anybody else have experience with this, or perhaps some productive way of dealing with it? I am looking at options I could offer up to management vs just complaining about it. Yes, I have received advice to just move to another company etc, but I really think the company would look into ideas if presented.

 

[PEinc]

esloan,

No company cares how badly you beat up or overload YOUR car or truck. The company definitely makes out on this type of deal. When you drive on job sites, your costs are much higher than what the government lets the company claim or what the company pays you. Driving on job sites wrecks your tires, ruins your air filters, kills your motor oil, wears out your brakes and rotors, and eats up your gas because you idle more while doing your paperwork with air conditioning or heat. Cars and pickup trucks were not meant to be on dirty, dusty construction sites every day.

It's up to you to say enough is enough. Unfortunately, if you do say enough's enough, you will probably need to find a new job. The company will not buy every field employee a company vehicle.

 

[MintJulep]

pickup trucks were not meant to be on dirty, dusty construction sites every day

According to the advertisements they are!

 

[ajack1]

45 cents a mile seems fairly generous to me, here in the UK you get 40 pence a mile, when you look at the cost of fuel in the two countries it is not hard to see who is the winner.

Like mintjulip I did have to chuckle at the comment “ pickup trucks were not meant to be on dirty, dusty construction sites every day.” What exactly are they designed to do then? I do however realise that the op states he has a sudan.

 

[esloan]

*she* has a sedan

 

[tygerdawg]

Yet another suggestion:
you could do your homework and create a cost justification "business case".

You say the owners just shrug their shoulders and say that's the way it has always been. What a cop out by lazy managers, and you fell for it. You are being required by your employer to use your own vehicle for their needs. Of course they'd like you to shut up and go away.

If this mileage thing is really bugging you, then you need to sell the company management. It may/may not be economically viable. But you'd have to do a rigorous cost/benefit analysis to prove it. The alternative is to stick with it and take the deductions. But I certainly would keep track of, and account for, every single penny of expense associated with that car, percentage of company-required usage, tire wear, oil, gas, wear/tear, insurance, batteries, bikini-babe car washes, air-freshener, ground-shaker bass speakers, autostart retrofit,...any and every "IRS-justifiable" expense associated with driving that car for the boss. Get my drift?

TygerDawg

 

[ajack1]

Whoops, sorry esloan.

 

[MikeHalloran]

A now former employer had the nerve to reimburse us at 32 cents a mile (when the IRS allowed 37), and then turn around and charge our customers $2.00 a mile.

So not only were we providing a wet least at below market rates, they were making a huge profit on the deal, too.



Mike Halloran
Pembroke Pines, FL, USA

 

[rbulsara]

I agree with bvanhiel. Besides finding another job, get a beaten truck.

 

[rbulsara]

I won't advise trying to extract anything out of IRS. Anything out of ordinarty only attracts more scrutiny.

 

[SWComposites]

Get the ugliest beater pickup you can find, and spray paint the name of your company on the side. Then park the truck at your office. Drive your car to/from home to your office, and use the truck to/from your office to job sites. That way the only use is for work; keep track of all costs and show them to your management after 6 monts or so. By that time they may get sick of having a ugly truck parked outside of their office and they might wise up and get you a company vehicle.

 

[esloan]

SWC that is hilarious! I don't know if I have the guts to do it, but it is an idea. *The spray painting part*

If I do get a second vehicle, I will definitely leave it at the office overnight, although will have to look into the building management's policies (we are in an office complex). The complex is definitely under-utilized and there is plenty of available parking.

I have a few months until construction starts back up.... that's why I have time and access to get online

 

[tygerdawg]

In response to rbulsara, I certainly did not imply doing anything illegal. That's...um...illegal.

Having worked for myself I have discovered this fact: the IRS is looking for the blatant cheats and ENRONs, not Joe Sixpack. The strategy is to work the system. That means account for everything, stretch the definitions if you've got the guts to do so, but be ready to sit in front of an IRS investigator at any time and justify your claims in writing and back it up with records. If you can't justify it in good faith, then don't claim it.

Following the various comments in this thread, it seems like it would be a good idea to get the old truck, then claim everything you're entitled to. Could make out pretty well I would think.

TygerDawg

 

[esloan]

Tygerdawg,

selling management on it was my 'big idea' but I can't figure out what to sell them!

I suppose I wanted to present some viable option to them... but I can't figure out what option would pursuade them to either increase compensation or provide vehicles.

It looks like the route I am heading is towards getting a truck on my own and keeping close records (which I am very good at doing).

It may be a long-term strategy as it will take time to accrue the records etc. but at least its better than sitting on my brains and doing nothing but complain about it.

 

[esloan]

I just took the PE and when I get the results in a couple/few months we are going to look at my salary level etc. Maybe I could do a little research about how the vehicle costs basically reduces my income. I am researching salary levels and finding that mine is significantly below local levels.
Maybe I can present this at that point.

 

[dcasto]

If you get a company car, read all the rules and strings attached. I always had one and every year the rules became more stringent. I now drive a cheap car for work and enjoy the freedom.

 

[monkeydog]

esloan,
You said
"If I do get a second vehicle, I will definitely leave it at the office overnight, although will have to look into the building management's policies (we are in an office complex). The complex is definitely under-utilized and there is plenty of available parking."
Print off the company name and have it laminated to leave on the dashboard overnight. I would not worry about leaving the beater truck overnight at the office complex. If it is an issue with the office complex management company they will go to the owners for that. When they come to you tell them "That's my work truck what do you expect me to do with it?"

 

[arunmrao]

esloan
Have a two wheeler scooter and charge the company for a 4 wheeler. This will not cause a hole in your pocket and your commuting is better as you mentioned that you have short runs

 

[tygerdawg]

esloan
My approach to the "Management Selling" and cost justification task would probably be something like this.
(1) do the accounting for all costs. Be rigorous, and try to quantify intangibles like lost time, opportunity cost, convenience cost, company image, etc. Personnally I think PERSONAL & COMPANY LIABILITY RISK would be the deciding factor, but the numbers would show this.
(2) Write a proposal to management to improve operations through getting a few company cars to be kept in a pool. Be sure to show cost/benefit, and put it in dollars. Leave the opinion and editorializing out of it completely.
(3) Get support from the troops. Query everybody and see if this is the general feeling or is it just you wanting a car for yourself.
(4) Float it front of the management, do it professionally, and keep the tone of the proposal as "a bottom-line improvement" to the company.

Once, after my JerkBoss blew cigarrette smoke at me on purpose, I decided to see what it would take to make my workplace smoke-free. I called the Lung Association, got materials, queried the troops, and wrote a proposal. The General Manager hated smoking in the workplace, but didn't have the guts to address it. My proposal for "Company X Workplace Wellness Initiative" (NOT "anti-smoking") got implemented in a week. Boss had to smoke outside in the cold, the Jerk.

TygerDawg

 

[sms]

When I was using my personal car for business the company used this program.

http://www.runzheimer.com/web/bvs/home.aspx

You might send this link to someone in management...

-The future's so bright I gotta wear shades!

 

[esloan]

The scooter/4-wheeler/dirtbike options aren't totally on the radar for me. Most of my project sites are not adjacent to the office, but require some travel in heavy traffic and I am not comfortable with it. Secondly, I require transport of files and equipment which would not really fit on the above.

My reimbursement rate is per mile, I cannot think of a way to purchase anything to "charge" to the company. Any expenses charged to the company above the mileage is looked at with a magnifying glass. Actually, it has to be pre-appproved or in an emergency, I'd have to go to management directly. We are a very small company.