csa- my business car allowance is income?

MonkeySaving?

exil wrote: »

Employer could supply you with a company car instead and you then pay tax on the benefit (but this is a notional benefit and thus wouldn't count for CSA purposes). Would have to work out yourself whether you are better off this way.

Or, employer can pay mileage, which is untaxed up to the HMRC limits of 40p/25p a mile. Again this wouldn't IMO count for CSA.

The problem is, it's very unlikely that the comapany would move from car allowance back to company car. For both the company and the receiver of the car having car allowance saves both sides significant money. Unless the OP could convince his employer otherwise, i doubt he'd be able to go down that route.

daz181

"my ex quoted some case and that was taken into consideration"

Does anyone know where we can find this quoted case??

cheers

d.

Loopy_Girl

You get approx £500 a month to run a car? And then every year as you admitted previously you get approx 2K for your fuel which you claim at 40p per mile.

What kind of car exactly is is that you have? A ruddy Bentley sitting in the drive?

If it is taxable income then it will be taken into consideration for CSA purposes and quite frankly, you know you are making money from this £500.00 per month. Don't be so dramatic saying you couldn't run your car. If it really came to it (which I doubt) then you could downsize.

JKSpyd

A lot of this does show a bit of a misunderstanding on what costs are generally provided for by companies.

So, for example if you get £5500 a year to finance your car it is unlikely that your company is then going to pay you 45p a mile for your usage, as this 45ppm includes depreciation, and, having paid for the car, likely on a lease, will already be included in the original payment. More likely your company will pay around 12p a mile to cover fuel. Therefore depreciation comes out of the £5500.

Other things you will have to pay for are increased maintenance as you likely use your car a lot for work, all consumables e.g. tyres, windscrees wipers etc, increased insurance which will likely be underwritten with high annual milleage and business use for work purposes which can significantly push the costs up, which again means this £5500 is not like the salary income which you quite rightly, and without complaint, pay 25% of to your kids. It is set aside to pay for the tools for you to do your job.

I would assert that if you are senior enough in your company to be getting a payment of £5500 a year to cover your business vehicle you are likely doing a decent ammount to help your kids through your salary which is probably quite high and you shouldn't be penalised for the method in which your employed chooses to make you mobile for work and do the job which allows the relatively high payment from your salary.

So, yes, you could drive about in a Fiesta, but if you are a senior person meeting clients and the like it's not an option is it really. Your company doesn't pay you this allowance for an executive car to then see you in something which doesn't communicate the right company image and this is not only professionally embarassing but could be a career limiting. There is a status element to the car which is important in business, people will disagree, but I bet none of them has worked in a senior corporate job.

My view is a reasonable car allowance, if it is a job need car, should not be included for maintenance purposes. Government could quite easily stipulate what they feel to be reasonable in terms of a car allowance. At the moment these is some unfairness depending on how your employer feels it best suits them. E.g. a senior exec who gets a company X5 which could cost £10k to run pays nothing and someone more junior who has to get their own car has to pay 25% of their £5.5k car allowance.