Car allowance
#1
Car allowance
I need some advice from people that opt out of their company car scheme and receive a monthly car allowance instead.
In June 2001, instead of receiving a company car, I was given £200 gross per month to buy and run a suitable car for company business.
I'm a service engineer doing around 25k miles per year (including personal miles) and claim back from the company £0.40 (for the first 10k miles per year) then £0.25 for any business miles. I have to buy all my own fuel.
I have been led to believe that the current going rate for a car allowance is £500 gross per month.
Given the choice I still wish to continue opting out as it gives me the freedom, within certain limits, to own what I want.
Being as motoring costs, especially fuel, have risen a lot in the last 3.5 years, I feel that I have got good grounds to request a review. Bearing in mind that I will be negotiating with an accountant in a Swedish company (where they don't seem to understand the perk of a company car), if you were in my position how would you best go about getting the monthly allowance raised to the going rate?
In June 2001, instead of receiving a company car, I was given £200 gross per month to buy and run a suitable car for company business.
I'm a service engineer doing around 25k miles per year (including personal miles) and claim back from the company £0.40 (for the first 10k miles per year) then £0.25 for any business miles. I have to buy all my own fuel.
I have been led to believe that the current going rate for a car allowance is £500 gross per month.
Given the choice I still wish to continue opting out as it gives me the freedom, within certain limits, to own what I want.
Being as motoring costs, especially fuel, have risen a lot in the last 3.5 years, I feel that I have got good grounds to request a review. Bearing in mind that I will be negotiating with an accountant in a Swedish company (where they don't seem to understand the perk of a company car), if you were in my position how would you best go about getting the monthly allowance raised to the going rate?
#2
there is no "going rate", you get what the job/salary package dictates based on what your company wants to pay you. My last car allowance was £250/month.
You can claim back from the IR a tax refund for the diference between their mileage rates and what you receive from the company via your anual tax returns.
You can claim back from the IR a tax refund for the diference between their mileage rates and what you receive from the company via your anual tax returns.
#3
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Agree with above, there is no going rate, although their seem to be bands depending on the area of work you find yourself in. I think 200-300 seems to be the starting point (mondeo/Vectra/audi a3/golf etc etc), then you have the middle tier 300-400 (3 series, a4, c class, volvo etc), then the 400+ arena..
Personally i get 450 a month, but decided to go for an audi a4 (middle band) and pocket the rest to put towards fuel.
Always remember though that if you opt out there are so many companies at your disposal to get the vehicle and the best rate. I get the fleet management magazine each month and beleive me it is a really cut throat market and you can play one company off against the other just like you can car dealers
J
Personally i get 450 a month, but decided to go for an audi a4 (middle band) and pocket the rest to put towards fuel.
Always remember though that if you opt out there are so many companies at your disposal to get the vehicle and the best rate. I get the fleet management magazine each month and beleive me it is a really cut throat market and you can play one company off against the other just like you can car dealers
J
#4
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Originally Posted by johnfelstead
You can claim back from the IR a tax refund for the diference between their mileage rates and what you receive from the company via your anual tax returns.
Ballistic - I don't get a car allowance, but within the company £350-450 per month is the going rate.
Last edited by Nick100; 03 January 2005 at 06:59 PM.
#5
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£500 pm here, more as a "perk" in middle management. However, my fuel is reimbursed at only 18p per mile OK, can claim the tax back on the rest, but don't do many business miles. If you do a high mileage, higher p per mile is prob better. Mind you after 3 1/2 years why not ask for it to be reviewed (cost of living increases, inflation blah blah) what's the worst they can say? Only some lucky bu99ers get high allowance and high fuel reimbursement.
#6
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£4000 / year gross and 13.5p / mile
Your £2400 / year sounds low, but as stated the company can pay what they like (can get away with). Company car allowance is more to do with rank than mileage covered (i.e. actual need).
If you need a car for work, sounds like you do, do a bit of research as to what car (if any ) you can actually get for that level of lease. Then explain how a Perodua Nippa will not project the image that the company probably wants to project. This approach of putting the company's needs before your own is most likely to yield results.
Good luck.
Your £2400 / year sounds low, but as stated the company can pay what they like (can get away with). Company car allowance is more to do with rank than mileage covered (i.e. actual need).
If you need a car for work, sounds like you do, do a bit of research as to what car (if any ) you can actually get for that level of lease. Then explain how a Perodua Nippa will not project the image that the company probably wants to project. This approach of putting the company's needs before your own is most likely to yield results.
Good luck.
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#8
I get enough per month to cover the loan that I took out to buy my car. I have since added my wifes car loan to the original loan and still manage to cover it with the allowance my company gives me! I get re-imbursed at 23p per mile and claim the difference back from the IR every 12 months. I usually claim about 9-10k business miles per annum.
Basically, my car costs me nothing to run as all fuel costs, both private and business are covered by the 23p. The IR annual rebate gives me more than enough for insurance, servicing and a set of tyres.
Matt
Basically, my car costs me nothing to run as all fuel costs, both private and business are covered by the 23p. The IR annual rebate gives me more than enough for insurance, servicing and a set of tyres.
Matt
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