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

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

i get £6000 per anum and run a £2000 scooby


they way I look at I could replace my car every 3/4 months


basically treat it as additional salary

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.

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

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.

depends if they give you an allowance and then pay you mileage on top. Other things to check,

Fuel car,
insurance
maintance

Nope, you'll pay a BIK on total actual cost of the fuel drawn & then claim the business miles back via the 40p/10p method.

D

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!!!