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  • FIRST POST
    Pythagoras
    How much car allowance will I actually get?
    • #1
    • 7th Jun 12, 5:35 PM
    How much car allowance will I actually get? 7th Jun 12 at 5:35 PM
    Hi Everyone,

    I have been offered a job which pays a car allowance in addition to the salary and I have been trying to work out how much I will actually get to run a car.

    I think I have come up with an answer, but I am hoping that someone will be able to tell me if I have worked this out correctly

    The job pays 36k and a car allowance of 3750. In addition to the car allowance I will get 45p for the first 10,000 business miles and 25p thereafter. I will probably do around 10,000 business miles a year.

    As I understand it, the car allowance is treated as additional salary, so of the 3750, I will only get a take home car allowance of 1462 after tax at 40%, NI at 12% and student loans repayments at 9%.

    If I do 10,000 business miles I will also get 4500 on top of this (which isnt taxed?) Assuming actual cost of fuel is about 17p per mile (1700 total) that leaves me with an additional 2800 towards the cost of running the car.

    So in total I will get 2800 + 1462 = 4262 to buy, insure, tax and maintain the car.

    Does that sound about right?

    Thanks for your help
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