Car allowance

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[Viney]

Is that per year?

What is it per month? What my mate does is personal contract hire. All in, as in full maintinece, and tax etc costs him around £550 a month on a Lexus IS200.

All he has on top is insurance.

[mattSV]

Nothing worth having

Unless you mean £6-7k per annum - £500 per month on a lease should get something nice.

Can't you ask for a £4,500 bike allowance instead as it's only got half the number of wheels?!

normally works that you run all expenses of the car and claim back company millage at about 10p per mile for diesel car and 12p for petrol, but this depends on the company and thier policy,

if i get offered a cr here ill opt for the company car as i cannot run, finance and insure the types of car on our lists for any where near £600 a month or the £400 thats offered here....

good luck btw

[timwilky]

Lucky you, my employers only offer £3900 or take a lease car.

£3900 does not adequately fund the car

as 4 £1560 or 40% goes straight to the tax man leaving £2340

say 1 sets of tyres a year + 2 services = £800 assumming nothing major =£1540

Tax = £160, insurance (Business use) £450 leaving = £930

So assumming you actually have the car for 4 years you have to spend £3720.

Now if I go the lease route I get a brand new car every 4 years, ok the tax on it is 40% of 3850 (3850 is the taxible value of my current car)

But as there is not tax/insurance/servicing costs I reckon people must be daft to take our cash in lieu option. insteads of running a banger you are in a decent car

Car Allowance usually means cash instead of a company car. You'll still have to pay tax on it (either 22% or 40% if you are a higher rate taxpayer - this might trip you into the higher band). It's a sneaky way of the company getting round giving you less of a salary increase each year (in % terms as the car allowance won't count), and possibly pension contribution - again in % of your basic salary


Company cars attract varying amounts of tax depending on their pollution rating
The type/model of car you can get also varies - it used to depend on the likely resale value - I was offered a BMW instead of a Ford as it would have been worth more after 3 years, but told them where to go as it didn't have a radio, aircon, sunroof, etc.

Originally Posted by K

Can't you ask for a £4,500 bike allowance instead as it's only got half the number of wheels?!

That'd get you about 12 weeks bike rental

Well it would if you were an insurance company! The 3rd parties insurance company supplied me with a bike for 4 months and for the money it would have been cheaper to buy me something brand new