JimmyRB5PRO

Poss about to get a new job which has a £5K car allowance - anyone know what that means take home - is it just divided by 12 or will i still get taxed on this amount ?
So does this mean i might get £416 a month for a car allowance and if so do i keep the wifes BM and make some money on it or do i get something else -
if so whats the best way to get something good - still get 40p petrol for business milage ????????

cheers..........

boxst

Hello

Although it is listed differently on your payslip, you still get taxed at 40%. My company also then reduces the per mile payment to 23p instead of 40p.

Steve.

Diablo

LOL we had this done to death a while back

If the allowance takes you into the 40% tax bracket thats what you'll pay on the £5,000, otherwise its taxed at the lower rate of 22%.

Most companies will pay you a lower mileage rate than the tax free limit of 40 ppm for the first 10,000 miles and 25ppm thereafter whether you take a car or the allowance.

Some will pay you the higher rate if you take the allowance and not the car though and its worth checking this out.