Is this car allowance reasonable?
Discussion
I'm doing some sums at the moment to choose between company car and car allowance.
The policy looks a bit tight to me, financed in the following way.
Around £3k after tax, £1200 or so saved in car tax (bit of a con here if you ask me) and then 40p for 10k miles and 25p per mile after that.
There is a age limit of 4 years after which point the car must be changed.
Seems low for a 30k miles per year driver.
What do you think?
The policy looks a bit tight to me, financed in the following way.
Around £3k after tax, £1200 or so saved in car tax (bit of a con here if you ask me) and then 40p for 10k miles and 25p per mile after that.
There is a age limit of 4 years after which point the car must be changed.
Seems low for a 30k miles per year driver.
What do you think?
Golaboots said:
I'm doing some sums at the moment to choose between company car and car allowance.
The policy looks a bit tight to me, financed in the following way.
Around £3k after tax, £1200 or so saved in car tax (bit of a con here if you ask me) and then 40p for 10k miles and 25p per mile after that.
There is a age limit of 4 years after which point the car must be changed.
Seems low for a 30k miles per year driver.
What do you think?
so youd be 4200 better off net per year which is what, 350 per month.The policy looks a bit tight to me, financed in the following way.
Around £3k after tax, £1200 or so saved in car tax (bit of a con here if you ask me) and then 40p for 10k miles and 25p per mile after that.
There is a age limit of 4 years after which point the car must be changed.
Seems low for a 30k miles per year driver.
What do you think?
plus for 30k miles you would get £9,000 in addition. so that's £13,200 per year net for doing 30k miles per year.
if you get the mileage then go for it but i doubt you will, as they are paying you a car allowance you may just get 15p per mile.
with the company car you'd get say 15p per mile so £4,500 for the fuel over 30k miles.
Golaboots said:
I'm doing some sums at the moment to choose between company car and car allowance.
The policy looks a bit tight to me, financed in the following way.
Around £3k after tax, £1200 or so saved in car tax (bit of a con here if you ask me) and then 40p for 10k miles and 25p per mile after that.
There is a age limit of 4 years after which point the car must be changed.
Seems low for a 30k miles per year driver.
What do you think?
£250 Nett per month...mmmm plus any Tax benefits(Which may be worth a good few quid)The policy looks a bit tight to me, financed in the following way.
Around £3k after tax, £1200 or so saved in car tax (bit of a con here if you ask me) and then 40p for 10k miles and 25p per mile after that.
There is a age limit of 4 years after which point the car must be changed.
Seems low for a 30k miles per year driver.
What do you think?
Mileage rate looks good, is that the Gov rate? (Remember you can claim back tax if your company pays below the gov rate)
Are there any other benefits, such as a pension scheme/bonus/overtime calculated on your basic + car allowance? This might be the tipping point, it was for me.
Is there a restriction on the type of car, for example, will you taxi customers from time to time, or are you free to do your own thing?
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