Car Allowance

neil2047

I have received a job offer with the option of a company car or car allowance and don't know the best option to take.
The car is up to a value of £18k and I will also get all of my fuel paid for in either option. The paperwork says I can opt for a Car allowance but neglects to say how much this will be. My new salary if I take the company car option would be £45k.

Any help on this matter would be appreciated.

stazi

You might a quicker reply if you post in the tax forum.

ClaireS

It depends on how good your present car is and if it is worth getting rid of. In most cases if you opt in for a company car you will be stuck with it until the end of the rental period or when you have done 75,000 miles. You must also remember that you will have to pay company car tax (in my case for a £16k car approx £100 per month) and if you get a fuel card you will also have to pay tax on that as well.

I have recently opted for the cash allowance before i went on mat leave and am now £400 better each month.
There are company car tax calculators available if you search through a search engine