How much to negotiate for not having company car?
Discussion
my mate has the opportunity of a job with a new company. The company normally offers a company car with the grade of job his is going for but his preference is not to have one...
What would a company car (say a Mondeo size)cost a company per year? he needs a rough figure so he can negotiate a realistic increase in salary, rather than have the car.
Anyone any ideas the amount?
What would a company car (say a Mondeo size)cost a company per year? he needs a rough figure so he can negotiate a realistic increase in salary, rather than have the car.
Anyone any ideas the amount?
He may find that it's not an option if his role is going to involve visiting clients in the car. Or if he takes a cash allowance instead, the company may stipulate that any vehicle that may be customer facing has 4 or 5 doors, five seats, no folding roofs, no 4x4/SAVs, not over 4 years old etc.
He may also find that the only benefit he will accrue by opting out of the company car scheme is by not having to pay any P11D taxes for having one, so whilst his gross salary remains unchanged, his net pay will be improved by not having a company car. That an employee chooses not to take the offered company vehicle does not necessarily mean the company have any requirement to pay him the money they would have otherwise spent on providing one for him.
With most companies looking to trim their operating costs as lean as possible right now, I'd not expect any increase in gross salary for not taking the company car. It's his choice to take it or not.
He may also find that the only benefit he will accrue by opting out of the company car scheme is by not having to pay any P11D taxes for having one, so whilst his gross salary remains unchanged, his net pay will be improved by not having a company car. That an employee chooses not to take the offered company vehicle does not necessarily mean the company have any requirement to pay him the money they would have otherwise spent on providing one for him.
With most companies looking to trim their operating costs as lean as possible right now, I'd not expect any increase in gross salary for not taking the company car. It's his choice to take it or not.
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