How much car allowance instead of company car?
How much car allowance instead of company car?
Author
Discussion

SteveC72

Original Poster:

155 posts

176 months

Sunday 25th May 2014
quotequote all
If an employee has a budget of 30k to spend on a company car and the car is changed every three years, what would a reasonable monthly amount of car allowance be instead of the company car?

I've tried to find resources online, but can't seem to find any guidance on this.

Many thanks.

bogie

17,105 posts

303 months

Sunday 25th May 2014
quotequote all
depends on mileage driven and with/without maintenance/insurance/fuel

where I work its 600-800 a month, depending on job grade

or a car to similar lease value on a 36 month, 20K mile a year fully maintained lease with fuel

roughly that works out to cars in the 30-40K price range, depending on options

so 30K fully expensed car - prob around 600 a month cash equivalent + fuel allowance

ffc

789 posts

190 months

Sunday 25th May 2014
quotequote all
Does that 600 take into account 40% income tax? In only ask because I'm not sure that 360 per month gets a 30K car with insurance and running costs (I haven't looked).

Edited by ffc on Sunday 25th May 20:33

TwigtheWonderkid

49,231 posts

181 months

Sunday 25th May 2014
quotequote all
ffc said:
Does that 600 take into account 40% income tax? In only ask because I'm not sure that 360 per month gets a 30K car with insurance and running costs (I haven't looked).

Edited by ffc on Sunday 25th May 20:33
Tax comes off any car allowance, but remember that you won't be paying BIK on a car you get with your car allowance

jkh112

23,947 posts

189 months

Monday 26th May 2014
quotequote all
It also depends on what mileage rate you could claim on business miles if you took the allowance.