Company Car Allowance Rates
Discussion
I have been asked by an existing employee who currently has a company car for a car allowance
I'm happy to give him one but have no idea what an appropriate rate is
He currently has an Audi A5 2.0tdi sport as his company car which we bought about 6 mths old for £26k two and a half yrs ago. Effectively he was employed on the basis he would get a new company car costing around £25k i.e. a basicish exec diesel 3 series /c class/a4 type car but we both agreed at the time to get something slightly better, but second hand, as he gets a nicer car and we would get a better residual
So what do we pay him as a car allowance in lieu ? £500 per month ? And what do we pay him as a mileage claim for fuel (forgetting tax efficiencies of that for a moment) i.e if we are paying a car allowance that is 'appropriate', what do you then pay for business miles to cover fuel - 20p per mile ?
I'm happy to give him one but have no idea what an appropriate rate is
He currently has an Audi A5 2.0tdi sport as his company car which we bought about 6 mths old for £26k two and a half yrs ago. Effectively he was employed on the basis he would get a new company car costing around £25k i.e. a basicish exec diesel 3 series /c class/a4 type car but we both agreed at the time to get something slightly better, but second hand, as he gets a nicer car and we would get a better residual
So what do we pay him as a car allowance in lieu ? £500 per month ? And what do we pay him as a mileage claim for fuel (forgetting tax efficiencies of that for a moment) i.e if we are paying a car allowance that is 'appropriate', what do you then pay for business miles to cover fuel - 20p per mile ?
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