Car Allowance

ivant74

I've recently been offered a job with £30000 pa and they're offering me £3000 pa car allowance and 40p per mile. Is this a fair offering or £3000 is a low offer?

Kimitatsu

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inmypocketnottheirs

I think £3k plus 40p per mile is very generous.

SueC_2

I'd say it's very generous too.

Most places I know only pay the 40p per mile rate where people are using their own cars, unsubsidised by a car allowance. The 40p per mile is intended to cover all the running expenses of the car, not just fuel. If you're already getting £3000 (presumably per year?) to cover the running expenses, you're going to be quids in on the 40p per mile.

You don't make mention of a mileage limit on the 40p. It's quite normal for this to drop down (typically to 25p in line with the Inland Revenue rates) once you've done 10,000 miles. If your 40p is genuinely limitless, then I'd say you're onto an absolute corker!

BillTrac

well I get £6000 a year car allowance plus expenses, and no I am not in management.

Don't forget that out of that car allowance has to come income tax, then the actual costs of running the car over and above the mileage payment

You need to sit down and work out how much you will have after tax. Then how much to tax and insure the car, not forgetting to have business travel on the insurance, and see how much you have left. Also I put some aside each month so I have a fallback sum in case of problems with tha car, or I need tyres, service etc

jessicamb

£3000 is a little lower car allowance than I get but your mileage is much higher - 40p compared to the 14p I would get as the rate paid is lower than a private mileage amount.

Generally any company car allowance scheme I have seen in the past is paid on a set rate though across the company (well across ranks in the company, a standard rate and then higher figures for CEO etc).

It does seem a generous enough offer to me.