Car allowance removed

[Redtailed78]

Hi,

I was told during the week after a meeting that my option to take a car allowance instead of a company car was being stopped straight away.

Back story, I accepted a promotion Aug 2014 that stated increase salary and company car or option of car allowance (made available when the lease on current company car ends)

I advised my fleet manager I was taking an allowance around May this year when my company car is returned and asked for a lease end date. I was fobbed off for a while although they gave me the lease end date (14th October 2015). My manager emailed me in September to advise they are changing the leasing company and car choices so I should hold off until the car choices are finalized before making my decision. So on his advice they have temp extended the lease on current car until policy is confirmed.

Then yesterday I was told the car allowance policy has changed and as I do over 12000 busines miles I have to take a company car. Other staff are in receipt of an allowance over that mileage and no company announcment has been made so it appears to only be directed at me.

So i'm wondering where I now stand, any advice would be great, I had test drives booked this weekend with a view to buying so thats now out the window and also a loan arranged.

Thanks

[stevensdrs]

Look for another job. The writing is on the wall for you methinks.

[Redtailed78]

yeah although I had my appraisal during the week and had a glowing report, They said it's to do with cutting costs but if thats the case they would surely be removing other peoples allowances.

I thought they would at least need to give notice of the change or change my contract to reflect the new policy

[Troubleatmill]

Well... you can thank them for giving you the motivation to leave.

[mph1977]

Redtailed78 said:

yeah although I had my appraisal during the week and had a glowing report, They said it's to do with cutting costs but if thats the case they would surely be removing other peoples allowances.

I thought they would at least need to give notice of the change or change my contract to reflect the new policy

or they are cahnging it as things come up ...

how do you know they haven't advised other people that things might change when their current private leases come up

[Sheepshanks]

stevensdrs said:

Look for another job. The writing is on the wall for you methinks.

Hmmm...we were bribed out of our company cars with a very generous car allowance. Turned out the reason was the company was up for sale and they wanted to be a position to let us all go without being lumbered with loads of cars.

[andy-xr]

But you dont actually have any commitments to a new car, as in - you've not spent any money and you're still rolling round in a new car provided to you by the company?

[Vee]

Check whether you can order a new car or have to take an existing one.
If it is a genuine cost cutting exercise they are probably already committed to a car which you will inherit.

Personally I'd confirm whether this is a new company policy, and why it only seems to apply to me.
I would also say that the car allowance was one of the factors I considered in taking the job.

You may also want to consider that the company car will have a tax implication on you - if you do not have a choice of car are they going to recompense you for any extra costs ?


PS ignore this tosh - I'd be very surprised that they give a you a good review/appraisal at the same time as wanting to get rid of you.

stevensdrs said:

Look for another job. The writing is on the wall for you methinks.

Edited by Vee on Monday 19th October 12:17

[edc]

You may find that there is a distinction between car use that is driving the changes. Business needs vs perk.

[TwigtheWonderkid]

Redtailed78 said:

Then yesterday I was told the car allowance policy has changed and as I do over 12000 busines miles I have to take a company car.

I'm not surprised. They don't want to be paying 45/25p per mile on those figures. That's £5000 a year before they've even started to pay your car allowance.

[Sheepshanks]

TwigtheWonderkid said:

I'm not surprised. They don't want to be paying 45/25p per mile on those figures. That's £5000 a year before they've even started to pay your car allowance.

Generally they don't. If you get a car allowance then you usually only get business use fuel costs reimbursed, typically at something like 15p/mile.

User can claim tax relief on the difference between what the firm pays and the 45p/25p rates.

[Redtailed78]

Vee said:

Check whether you can order a new car or have to take an existing one.
If it is a genuine cost cutting exercise they are probably already committed to a car which you will inherit.

Personally I'd confirm whether this is a new company policy, and why it only seems to apply to me.
I would also say that the car allowance was one of the factors I considered in taking the job.

You may also want to consider that the company car will have a tax implication on you - if you do not have a choice of car are they going to recompense you for any extra costs ?


PS ignore this tosh - I'd be very surprised that they give a you a good review/appraisal at the same time as wanting to get rid of you.

stevensdrs said:

Look for another job. The writing is on the wall for you methinks.

Edited by Vee on Monday 19th October 12:17

Thanks, there is a list of cars which is still being tweaked. Very poor selection on offer though and all company cars are now gps tracked. I'm more annoyed that I no longer have the option to take the allowance and run my own car (still within the guidelines) whilst other staff including managers all opt out.

I'll need to find out if they can legally enforce this as they did not give me notice of any change but advised me to delay my decision.

I would think they would need to contact everyone in receipt of the allowance to change their policy otherwise they are effectively showing favouritism. (I know they haven’t yet as I have spoken to a number of other guys today)

If the policy is being rolled out to everyone then fair enough but I don’t think it is and need to fight my corner without getting on the wrong side of management too much.

[Redtailed78]

TwigtheWonderkid said:

Redtailed78 said:

Then yesterday I was told the car allowance policy has changed and as I do over 12000 busines miles I have to take a company car.

I'm not surprised. They don't want to be paying 45/25p per mile on those figures. That's £5000 a year before they've even started to pay your car allowance.

Mileage rate we claim back is 18p and allowance is £350 per month. Cars on offer are all roughly £20000 basic spec hatchbacks with no options.

[Sheepshanks]

Redtailed78 said:

Mileage rate we claim back is 18p and allowance is £350 per month. Cars on offer are all roughly £20000 basic spec hatchbacks with no options.

How many business and private miles do you do?

[andy-xr]

Redtailed78 said:

Thanks, there is a list of cars which is still being tweaked. Very poor selection on offer though and all company cars are now gps tracked. I'm more annoyed that I no longer have the option to take the allowance and run my own car (still within the guidelines) whilst other staff including managers all opt out.

I'll need to find out if they can legally enforce this as they did not give me notice of any change but advised me to delay my decision.

I dont know about the legal side of anything, but I do know that if you go in waving paper around at people about your rights you'll mark your card and never really get what you want without it being awkward. You havent got a 'loss' to speak of yet and they've gone out of their way in making sure you didnt already.

[Redtailed78]

Sheepshanks said:

How many business and private miles do you do?

Currently about 18000 business miles and about 6000 private based on the last 12 months. My mileage is falling all the time as I travel by train when possible.

As with everything work related I'll either have to just accept it or look somewhere else.