Car allowance?

RAW123

Hi.
I'm in the process of negotiating a package for a new job. Part of the package is the choice of a company car and fuel card or an allowance of £450 pcm as an alternative.


I understand that the company car will be a taxable benefit, and that the allowance will be subject to tax and NI but is there anything else to consider? I have heard mention elsewhere that I could get some tax relief on the allowance but no idea if that is correct and what could be claimed back.

Any advice or experience would be appreciated.

Cheers.

phill99

For me it's a no brainier. Take the allowance and get a mid range car and run it into the ground.

You'll be far better off

rs65

RAW123 wrote: »

I have heard mention elsewhere that I could get some tax relief on the allowance but no idea if that is correct and what could be claimed back.

Its tax relief on mileage - 45p per mile less amount paid per mile by employer times your tax rate. (drops to 25p after 10,000 miles)

Tax you pay on the car depends on value and emissions.

The business mileage you cover, amount paid per mile and choice of car all matter. Then google car tax calculator or something like that and see what the costs are.