Salary negotiations
Discussion
I am in the fortunate position of being offered a new job but need to negotiate salary and conditions - and yes I know you'd all like to be in this position but I'm new to this level and would like some help!
I am hoping someone can advise on the dilemma of negotiating a higher salary as at the higher rate tax borderline level or asking for car allowance / company car.
I've not been offered a company car before so not sure when this becomes more of a hindrance for benefits than a nice to have - role is not sales related so although some travel involved it is not expected to be high (what's the level of travel when company car becomes worthwhile?)
Any help appreciated or if you can point me in the direction of relevant websites / stuff to read and digest etc.
thanks
I am hoping someone can advise on the dilemma of negotiating a higher salary as at the higher rate tax borderline level or asking for car allowance / company car.
I've not been offered a company car before so not sure when this becomes more of a hindrance for benefits than a nice to have - role is not sales related so although some travel involved it is not expected to be high (what's the level of travel when company car becomes worthwhile?)
Any help appreciated or if you can point me in the direction of relevant websites / stuff to read and digest etc.
thanks
In terms of working out how much a company car will cost you per month, I use this website;
http://listentotaxman.com/
Apologies if I am stating the obvious, but what you need to do is put in your salary plus the amount of car allowance you would get.
So you will get an after tax figure, this is option a.
Now look up the car you fancy on parkers.co.uk, and see what it's cash equivelant is, then deduct that from your standard tax allowance to work out what your tax code would be. If you're still in positive numbers it's a L code, ie £2200 becomes L220, if you're in the negative then it becomes a K code, ie -£2200 becomes K220.
OK, so now put in your salary WITHOUT the car allowance and with your new code. You now have your income option b, and the car effectively costs you the difference.
http://listentotaxman.com/
Apologies if I am stating the obvious, but what you need to do is put in your salary plus the amount of car allowance you would get.
So you will get an after tax figure, this is option a.
Now look up the car you fancy on parkers.co.uk, and see what it's cash equivelant is, then deduct that from your standard tax allowance to work out what your tax code would be. If you're still in positive numbers it's a L code, ie £2200 becomes L220, if you're in the negative then it becomes a K code, ie -£2200 becomes K220.
OK, so now put in your salary WITHOUT the car allowance and with your new code. You now have your income option b, and the car effectively costs you the difference.
I would want to be doing 20K business miles + 5K personal (or more) before I ran a company car
otherwise I carry on as normal, run a 3-5 year old car and something special
take the cash alternative - if its £500 a month or £6K gross, and you are in the 40% bracket, its about £270 a month in your pocket extra
as for negotiating salary - thats a personal thing, you should be able to find out from agencies/internet what similar roles are paying elsewhere, if they really want you, they will pay a bit more than "average"
otherwise I carry on as normal, run a 3-5 year old car and something special
take the cash alternative - if its £500 a month or £6K gross, and you are in the 40% bracket, its about £270 a month in your pocket extra
as for negotiating salary - thats a personal thing, you should be able to find out from agencies/internet what similar roles are paying elsewhere, if they really want you, they will pay a bit more than "average"
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