Typical car allowance for junior team member?

[pmanson]

Hi All,

Unfortunately i'm not a director (yet) but I could do with a bit of guidance re. car allowances.

I've been with my current company for close to a year and in that time i've driven a not inconsiderable amount of miles (ranging from 200 - 1000 miles pcm with a typical month being 800 miles). As an Account Manager I can only expect that to increase as time goes on.

Currently I can claim the standard 40ppm but i'd like to ask for a car allowance at my review when it comes around... however I don't know how much I should ask for/look to negotiate?

I've looked at similar roles online but they only state Salary of £x + Car allowance.

Thanks,
Phill

[pmanson]

Thanks guys - much appreciated

[pmanson]

DickSkruttock said:

The current rate is now 45ppm for the first 10000.

Our FD thinks the 40ppm rate is more than generous so I have to claim any additional back from the tax man

[pmanson]

Pints said:

pmanson said:

DickSkruttock said:

The current rate is now 45ppm for the first 10000.

Our FD thinks the 40ppm rate is more than generous so I have to claim any additional back from the tax man

I didn't realise they could do that. If that's the case, I really do need to brush up on my tax.

It works (i think) like this:

10,000 miles claimed @ £0.40 = £4,000
10,000 miles (additional 5p) per mile = £500

I think you can then claim tax relief on the £500, so a 20% tax payer could claim £100 back / 40% tax payer £200.

As I understand it the same works if you have a car allowance:

10,000 miles @ £0.45 = £4,500

Mileage allowance (say 14p) = 10,000 x £0.14 = £1,400

Claim for tax man = 10,000 x £0.31 = £3,100 (Then you claim either 20 or 40% back depending on your earnings)

[pmanson]

Eric - Will I have to do anything (apart from make the tax claim on the difference between the rate paid and the government rate) or will it (as I assume) all be sorted by PAYE?

Also how does it work in terms of my tax band? All being well I should jump up to the 40% threshold once commission is taken into consideration? I'm guessing that when I make the claim in April next year I tell them my tax code etc and HMRC work it all out for me?

Thanks,
Phill

[pmanson]

I've had confirmation today - £4800 per annum.

With the mileage I do (10-12k private, 8k business) i'm looking at a PCP deal on a Skoda Octavia VRS.

The savings i'll make from going from a petrol car that does 30mpg avg to a diesel that does 45mpg+ will allow me cover the additional costs.

Fingers crossed that my credit history (no missed payments but some stuff on my credit card)

Edited by pmanson on Thursday 16th June 21:15