How does a car allowence work
#1
How does a car allowence work
I had a job interview today and they offered me a car allowence can some one please tell me how this works.
I have always had a company car with fuel so don't really know how this works.
What is the average allowence ? how much do you need to for a average rep car. bmw 320 or a mondeo or similar.
Do you have to buy or is it best to least a car.
How do you get tax on this ? I will be driving on average 30k a year.
Thanks
I have always had a company car with fuel so don't really know how this works.
What is the average allowence ? how much do you need to for a average rep car. bmw 320 or a mondeo or similar.
Do you have to buy or is it best to least a car.
How do you get tax on this ? I will be driving on average 30k a year.
Thanks
#2
It is classed as salary, so you get taxed at whatever your higher rate is. If you are a rep doing 30K+ miles it isn't really a good deal.
The company that I work for insists that the car is less than 5 years old and less then 120,000 miles although there is some flexibility.
Edit: The amount varies from £450 - £1000 per month depending on your level.
Steve
The company that I work for insists that the car is less than 5 years old and less then 120,000 miles although there is some flexibility.
Edit: The amount varies from £450 - £1000 per month depending on your level.
Steve
#4
I get about 5 grand a year car allowance, I could have a company car but its Focus, Mondeo, Astra, Vectra, all diesels and I do very little milage so not worth it so I just take it as salary and sort myself out with a car, they arent that fussy as long as it does the job and to be honest we could just use my wife's when I need a sensible car and have something daft like a TVR or something.
It would drive me mad to pay 5 grand a year to run a Vectra and only driver 2 or 3 k a year.
It would drive me mad to pay 5 grand a year to run a Vectra and only driver 2 or 3 k a year.
#5
i read on the net u can claim back the mileage at 40p for the first 10k and 20p odd for the rest. is this on top of the allowence.
If they gave me a fuel card i take it i would not need to do this
If they gave me a fuel card i take it i would not need to do this
#6
it is salary, the reason why it is called a car allowance is probably due to the fact it is not pensionable.
The 40p a mile is the Inland Revenue limit. Your employer may pay you less than that, and on the basis you have a car allowance probably will do. You can claim the tax on the difference.
The 40p a mile is the Inland Revenue limit. Your employer may pay you less than that, and on the basis you have a car allowance probably will do. You can claim the tax on the difference.
Trending Topics
#9
Scooby Regular
you need form P87 -- download it form the web
P87 - Tax relief for expenses of employment
Obviously if your employer pays you over 40p a mile you will owe the Tax man!!!
P87 - Tax relief for expenses of employment
Obviously if your employer pays you over 40p a mile you will owe the Tax man!!!
Last edited by hodgy0_2; 13 January 2009 at 10:17 AM.
Thread
Thread Starter
Forum
Replies
Last Post
ossett2k2
Engine Management and ECU Remapping
15
23 September 2015 09:11 AM