Car Allowance vrs Company Car

[VEX]

I am starting a six month contract with company and they usually supply a company car but as I am contracting and have a good spec vehicle that I can use.

However they have offered a car allowance but it the first time they have done it and it is currently based on the contract hire cost of a low spec Mondeo.

What are the other costs or savings that I can atributed to that contract hire cost to get the figure up a but higher?

[Deva Link]

I would suspect nothing much, really - that's the point of contract hire. Maybe they pay per head for insurance but if it's a biggish company then that's probably quite cheap.

When you say contract, will you effectively just be a normal employee on PAYE for 6 mths?
Not sure how the NI treatment works in your case but you're not talking about a significant amount in the great scheme of things.

You will save money by not having to pay tax on the car, but of course the money they give you will be taxable.

What kind of use will the car have - if you've got to take it to dodgy and/or off road places, or it's going to do loads of miles, then you might be better taking the car.

How will they deal with fuel?