Car allowance

consumers_revenge · 19 March 2018 at 7:47PM

Hi,

Not sure this is the best place to ask this.

Hopefully I'm changing jobs and they seem to be offering me salary £27k plus a car allowance £4.2k

They say there will be occasional site visits ( presumably why theres a car allowance) but I will be using my own and the mileage is on top at .45ppm

The only downside I can see is its not included in any wage rise or pensions calculations?

I take it the 27k+4.2k is an annual amount? eg the 4.2k is given every year?

Am I missing something with what they are doing or anything negative for me?

Cheers.

LilElvis · 19 March 2018 at 9:07PM

You would need to ensure that your insurance covers you for business use, though the additional cost is usually negligible.

Typically a car allowance is spread over the year, so £4200/12 per month, but you would need to check that this is what your new employer will do.

It's also normal practice that a car allowance doesn't form part of pensionable pay and nor would it be used in calculating bonuses, holiday pay etc.

ssparks2003 · 19 March 2018 at 9:51PM

And of course you will pay tax on the allowance

LilElvis · 19 March 2018 at 10:09PM

ssparks2003 wrote: »

And of course you will pay tax on the allowance

And Employees National Insurance.

consumers_revenge · 19 March 2018 at 10:35PM

I took it as read that it would be the same as salary.

I presume its a yearly amount?

LilElvis · 19 March 2018 at 10:54PM

consumers_revenge wrote: »

I took it as read that it would be the same as salary.

I presume its a yearly amount?

You would have to check with your employer but, yes, a car allowance is usually an annual allowance.

Car allowance

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