Steve vRS

At my place, I can have a cash allowance instead of a co. car of £375 which is taxable and so in reality boosts my pay by about £210.

Or I can choose a car from our company car list to a 'Whole life cost allowance of £560 per calendar month'.

The company is basically wanting us to take a car rather than the cash. is this now the norm with big companies?

Steve

urban

iTrader: (1)

We'll my place isn't a big company - we've got about 50 staff.
We offer both options also, but generally people choose the allowance (£400)
They also get a mileage allowance for fuel on top of that.

I would assume that the car is better for the company as they'll not be paying tax & NI on the car, but will be on the allowance.

Steve vRS

Yes, personnel have said that it's cheaper for the company to give a car but given the difference in the payments, that seems difficult to believe - however, I'm no tax expert!

Steve

boxst

My (rather large) company insists that you take the cash as the hassle involved with fleet management and people coming and going is a nightmare.

Remember you have to pay tax on the value of the car ...

Steve

urban

iTrader: (1)

Will you get a mileage allowance also?
Staff with us get an allowance of something stupid like 12p per mile, but you can claim the difference (40p maximum) from inland revenue.
Remember, you'll also be paying tax on the company car to inland revenue.

MMT WRX

One of my BiL is a construction site manager. They are allowed to claim travelling to site for two years apparently. Also he's working at Rugby University which is about 30 miles away and means he gets most of his allowance at the max rate. He used to get a company car every two years but, a few years ago they were offered the option of a car allowance instead. Now he buys a £4k diesel and he reckons he is loads better off.
Other than that, personally I ain't got a clue.

EddScott

I've never been in the position to have a company car but from what I've heard and talked with those that have the option, I think its usually better to take the cash and buy the car yourself.

As MMT says, buy something cheap as the work hack and pocket the cash. I would imagine that it would only make a significant difference if you were on the cusp of higher rate tax and one option or the other pushed you over??? I'm guessing here though.

Steve vRS

Oh I know all about the company car tax and the mileage payments etc.

The other stipulation is that any cash for car has to be less than 5 years old.

My annual mileage is 30000 and so a low BIK payment co. car I feel is best for me at the moment. A new Passat 2.0 CR SE Estate is only £95 per month tax.

To be honest, I didn't want this thread to be a discussion about the pros and cons of co. car versus cash, more an understanding if this difference between the two offers is now an industry trend or my company being tight!

Steve

Steve vRS

If the cash for car allowance was a bit higher, I'd take the money however the pitance I am being offered leans me towards the company car.

Steve

davyboy

Just be aware that if you select a company car, the price you pay now will almost certain increase 3% in April 2012.

I only get a bit more than you and bought my own due to this.

zip106

My wife works for a very large company (operates out of 60 countries) and they're not renewing any car lease when they expire.
It appears it's cheaper in the long run for them to give an allowance.

Her car goes back in June so we need to buy or lease one ourselves then.

boxst

Be careful about this. My company very specifically says that my car must be less than 5 years old, be of a suitable business nature and in "good condition" (whatever that means).

I had a Supra and got away with the fact it was a 'classic car'

Steve

Steve vRS

Yes, I know, hence my potential co. car being sensible Passat rather than another 'Tavia vRS. The fact that we now can't have an 'exaggerated spoiler' on any car (cash for car or company car) limits the interesting choices. I'll have to change my username to Steve SE!

My wife may find her A3 replaced with something a lot more interesting for the weekend!

Steve

Trout

iTrader: (1)

My company doesn't do either - no car or car allowance. Stingy fekkers!

MMT WRX

He has an 04 Mondeo estate TDCi which is more than ample for loading homework materials.
He's the most senior and qualified site manager they've got. To be honest if he said he was going to get a Ferrari I doubt they would object.