Discussion
hendry said:
deva link said:
hendry said:
deva link said:
There's a large body of opinion that thinks many of the allowances paid are too generous.
What can they do? It's salary. And who regulates salary, other than minimum wage, to ensure "fairness" there...?
No slite on you Deva, just the "large body of opinion".
One thing 'they' can do is to remove the tax rebate on mileage allowance, or reduce the allowance levels that are tax free.
I don't want this either - I drive a Merc!
Ah, but that would damage the hoardes who are requiredto use their cars for business use occasionally but don't get an extra dollop of salary dressed up as a "car allowance". And you can't stop car allowances, are they are recognised as just straight alary - they are only excluded by employers so they don't have to include that portion in salary reviews.
The monthly allowance is really just a way of buying people out of the car - every case is different, but generally, if you do very low (or no) business mileage then you're probably better off with a company car.
A lot of firms (usually smaller ones) expect their staff to use their own vehicles in return for ‘petrol money’ but really that’s outrageous - if you're an 'occasional' user, then even the 40p level doesn't really cover the true cost - the real cost per mile (inc ins, maint, depreciation etc etc) of most cars is higher than 40p.
deva link said:
hendry said:
deva link said:
hendry said:
deva link said:
There's a large body of opinion that thinks many of the allowances paid are too generous.
What can they do? It's salary. And who regulates salary, other than minimum wage, to ensure "fairness" there...?
No slite on you Deva, just the "large body of opinion".
One thing 'they' can do is to remove the tax rebate on mileage allowance, or reduce the allowance levels that are tax free.
I don't want this either - I drive a Merc!
Ah, but that would damage the hoardes who are requiredto use their cars for business use occasionally but don't get an extra dollop of salary dressed up as a "car allowance". And you can't stop car allowances, are they are recognised as just straight alary - they are only excluded by employers so they don't have to include that portion in salary reviews.
The monthly allowance is really just a way of buying people out of the car - every case is different, but generally, if you do very low (or no) business mileage then you're probably better off with a company car.
A lot of firms (usually smaller ones) expect their staff to use their own vehicles in return for ‘petrol money’ but really that’s outrageous - if you're an 'occasional' user, then even the 40p level doesn't really cover the true cost - the real cost per mile (inc ins, maint, depreciation etc etc) of most cars is higher than 40p.
I disagree. 40p doesn't sound a lot, but it is some compensation. The alternative is a fully funded company car and getting absolutely hammered on tax - this is especially painful for low mileage drivers. And frequently you end up piloting something crap rather than the car you would actually want.
hendry said:
The alternative is a fully funded company car and getting absolutely hammered on tax - this is especially painful for low mileage drivers.
Don't get blinded by the tax thing - like I said, it's differert for everyone (you'd be amazed at what looks clear cut often doesn't work out like that).
When the current scheme was introduced a few years ago, Boots (the chemists) reckoned that 500 of their drivers would opt back in.
In their cases, you've got a typical regional marketing person earning perhaps £16K/yr (so 22% tax) and driving a £10K/15% tax level car. Boots doesn't provide private fuel.
In this example, the employee is getting a car, with everything except fuel taken of, for £27.50/mth. Most people are paying more than that for their insurance!!
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