Car allowance changed to company car - fair/legal?

[AlasdairMc]

My wife and I both get car allowances, so we have one car on a PCP with business usage covering us both. This ensures that we are both allowed to drive the car for business - if one of us went for a company car, then the other could not use it for business.

My wife's employment contract is potentially changing, to remove the cash allowance and give a company car instead. This is obviously a PITA for us both, but leaves us with a car on a PCP and a reduced cash allowance. Is her employer allowed to do this?

It is our understanding that they are doing this because they need a pool car, and while she uses our car for business daily it's a private car so her colleagues cannot get use of it.

The employer is mindful of the fact they gave her a car allowance to get a car (with some strings attached around age etc), so they can't expect her to be able to just hand the car back and suffer no financial penalty. What is best practice in these situations, would they generally allow her to run the PCP to term?

Thoughts?

[AlasdairMc]

Thanks. I think mine is embedded in my contract, but hers seems to be discretionary as you say. It does seem unfair that you're given an allowance to buy a car but are expected to just hand the car back at the immediate behest of your company.

It's a real PITA as I was pricing up a lovely new car today and it's perfectly affordable at the moment but less so on one allowance

[AlasdairMc]

davepoth said:

What if both of you need the car for business at the same time?

Very, very unlikely - I haven't ever actually needed the car for business.