Car Allowance v Disability Car Allowance.

angela2011 · 10 October 2017 at 12:28PM

Hi there,

I've recently got a new job which pays £5400 as a car allowance. I wont be using the car for work purposes apart from 20 mile drive each day to and from work. My daughter is also disabled which means that we have a car through the Motability scheme. This costs roughly £350 a month.

What i'm wondering is am i best to have a car through the motability scheme or through my work.

Not sure if if i would get some tax benefits if i did it through my work as my daughter would get the £350 back tax free. Whereas if i took the car allowance as cash then i would pay tax.

Anyone got any suggestions or pointers to where i could get some information regarding this?

TIA

BoGoF · 10 October 2017 at 1:24PM

Would you using the mobility car for commuting to and from work every day not be misuse of the vehicle? I thought the purpose was to benefit the disabled person

angela2011 · 10 October 2017 at 2:10PM

It does benefit my daughter. She just doesn't have to be in the car every time i use it.

I drop her off at school then I have the car with me in case i had to leave to pick her up if she was sick or have hospital appointments. Which happens more often than you would think unfortunately.

BoGoF · 10 October 2017 at 2:21PM

To answer your question the £5400 will be subject to tax/NIC as normal salary so it depends on your tax rate as to how much that will be in your hand. If basic rate approx £3700 per annum.

Car Allowance v Disability Car Allowance.

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