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  • FIRST POST
    • angela2011
    • By angela2011 10th Oct 17, 12:28 PM
    • 453Posts
    • 132Thanks
    angela2011
    Car Allowance v Disability Car Allowance.
    • #1
    • 10th Oct 17, 12:28 PM
    Car Allowance v Disability Car Allowance. 10th Oct 17 at 12:28 PM
    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
Page 1
    • BoGoF
    • By BoGoF 10th Oct 17, 1:24 PM
    • 2,716 Posts
    • 1,951 Thanks
    BoGoF
    • #2
    • 10th Oct 17, 1:24 PM
    • #2
    • 10th Oct 17, 1:24 PM
    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
    • By angela2011 10th Oct 17, 2:10 PM
    • 453 Posts
    • 132 Thanks
    angela2011
    • #3
    • 10th Oct 17, 2:10 PM
    • #3
    • 10th Oct 17, 2:10 PM
    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
    • By BoGoF 10th Oct 17, 2:21 PM
    • 2,716 Posts
    • 1,951 Thanks
    BoGoF
    • #4
    • 10th Oct 17, 2:21 PM
    • #4
    • 10th Oct 17, 2:21 PM
    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.
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