Car Allowance, Company Fuel Rate - What am I Owed?!

[2 sMoKiN bArReLs]

AB said:

Allowance is £250pcm which is truly pitiful!

In that case 11p is as said pants!

[2 sMoKiN bArReLs]

2 sMoKiN bArReLs said:

AB said:

Allowance is £250pcm which is truly pitiful!

In that case 11p is as said pants!

...but I see you are not OP

[theboss]

2 sMoKiN bArReLs said:

theboss said:

2 sMoKiN bArReLs said:

Eric Mc said:

11p a mile is way too low for a person who has to use their own personal car extensively for work related journeys.

Not necessarily. The dude is being paid an amount before he turns a wheel. I guess it all depends how much this allowance is. A lot of firms would only pay a mileage rate after x miles have already been expended. If the guy is getting 11p from mile one plus an allowance it may be actually generous (if not particularly tax efficient)

Rubbish - it's way too low however you look at it. It doesn't even begin to cover costs. Furthermore HMRC provides the ability for the employer to reimburse staff free of tax and national insurance contributions outside of the PAYE system, but instead they are choosing to pay as salary/allowance. If your employer *could* pay you tax free but instead elected to pay 45.8p in the pound to HMRC largely at your cost - would you not wish them to reconsider?

You misunderstand my point old chap.

I was saying that nobody can comment whether 11p is good, bad or indifferent without understanding the allowance.

I wasn't rubbishing your point (sorry) - what I meant is that we all know (before confirmed) that a company paying 11p/mile is not doing so because they offer an overly generous allowance! What they choose to pay outright in allowance + AMAP is one thing, but to elect to pay the former subject to tax/NI whilst almost minimising the tax free option is rather ludicrous. They're effectively making a charitable donation on their employees' behalf, with what could be their own money instead.

I suppose they can't all afford to have Eric MC

[AB]

2 sMoKiN bArReLs said:

2 sMoKiN bArReLs said:

AB said:

Allowance is £250pcm which is truly pitiful!

In that case 11p is as said pants!

...but I see you are not OP

But he is...

FordMan1 said:

comes to my gross allowance a month of £250.

[2 sMoKiN bArReLs]

AB said:

2 sMoKiN bArReLs said:

2 sMoKiN bArReLs said:

AB said:

Allowance is £250pcm which is truly pitiful!

In that case 11p is as said pants!

...but I see you are not OP

But he is...

FordMan1 said:

comes to my gross allowance a month of £250.

[FordMan1]

Thanks for all the responses, it is truly pitiful in my opinion, however the company are stuck in the dark ages and unwilling to change.

The old guard cannot see past the "You have a fancy car and we give you cash, what more do you want". A fair car allowance and fuel allowance would be good...

[thepeoplespal]

Only real way of dealing with this is to get another job with more money or a better deal. It will cost them loads recruiting another one of you. Might be cutting nose off to spite your face though.

Edited by thepeoplespal on Sunday 26th April 11:12

[FordMan1]

thepeoplespal said:

Only real way of dealing with this is to get another job with more money or a better deal. It will cost them loads recruiting another one of you. Might be cutting nose off to spite your face though.

Edited by thepeoplespal on Sunday 26th April 11:12

True, establishing what is a fair car allowance based on grade etc is not the easiest, however lowest rates for a qualified professional in construction or property industry appears to be upwards of £4k a year Gross.