Which job offer is best?

Sam84

Hi all,

I am in a situation which I am hoping some of you may be able to help with. Now this is not a bad situation at all – in fact I have been offered two jobs! I am hoping for some help with the ‘tax' salary maths and also just some opinions...”what would you do?”

JOB OFFER 1
I am currently employed by a large company which have offered me a promotion to a management position, now the title is good, but the salary increase not so much. I would have an annual salary of £43,000.

I use my own car for a business mileage of around 10,000 miles per year and am paid 45ppm. I work from home so am paid my mileage as soon as I leave my house.

JOB OFFER 2
I have also been offered a senior role in a company I interviewed for just after Christmas. The salary offered is £47,000 plus £5,000 car allowance.

I will be based in central London (probably a £3,000 a year commute), but will also use my own car for business around 8,000 miles a year and be paid 16ppm. I assume I can claim back 40% of the difference between 16p and 45p...but how does this work – is it paid as a lump sum 1 year from now (tax return time)?

Can anyone help with the figures I have given and maybe work out if I will be much better off in 'offer 2' in real terms? I find the car allowance, mileage rate etc. very confusing!

Thanks all.

getmore4less

Any other benefits like pension, healthcare, bonus etc.


Commute time, hours , expectations, overtime weekend working etc.

I would sacrifice money for from work from home so no commute


you can always mitigate the 40% with pension contibutions any offer of salary sacrifice?

Sam84

Hours and expectations are both very similar. As are the contributory pension schemes, healthcare etc.

I know what you mean re working from home - but the truth is I still have to be in London 4 days a week in both jobs (I just get paid a mileage from home in 'offer 1').

gjchester

Sam84 wrote: »

I am hoping for some help with the ‘tax' salary maths and also just some opinions...”what would you do?”

Take the job you want to do over what pays better.

No amount of money is worth being in a job you don't enjoy. You may think you'll get to like any job but chances are you won't, it will mount up and it's not worth the stress.

Sam84

That's my main issue...I think both are good jobs, but 'offer 2' may have a better career progression route as I will be senior, but not yet in a management role.

Is 'offer 2' definitely a better paid job, when you consider commuting and car allowance etc. I am not sure how the tax works and what net pay will be?

Prothet_of_Doom

gjchester wrote: »

Take the job you want to do over what pays better.

No amount of money is worth being in a job you don't enjoy. You may think you'll get to like any job but chances are you won't, it will mount up and it's not worth the stress.

:T

Based on some assumptions, I think with one of the jobs you end up with £36.5K in your bank and with the other you end up with £36.9K in your bank.

If my assumptions are inaccurate, we are still talking a max of £100 a month different on a £3000 a month take home, so go for the one which is more fun. (£100 a month is what some people spend on coffee in london I'm told) :rotfl:

getmore4less

AIUI there is a bit of a catch with the way the car allowance works(reduced personal allowance) which can cause some marginal tax/NI issue, never looked into it properly, there are some example on here somewhere might be the tax board.

How are you commuting now what does that cost or is that expensed/included in the 10k miles.

The other thing I was going to say is that London would offer more social & networking opportunities but you are in town 4 days anyway so know that.

Sounds like you prefer the 2nd option and looking for support.

What would it take your current place to fix that or make them the preferred option, is it more than just some extra money?

getmore4less

One other thing,

this promotion was it on the cards anyway or is it a result of negotiation or them finding out/knowing you were looking to move.

TrickyDicky101

I suspect the car allowance in job 2 will simply be paid through the payroll in which case it just counts as additional taxable pay (although it is highly unlikely to be pensionable pay on which the company will pay Employer contributions). It's always been like that for me, anyway.

Prothet_of_Doom

Sam84 wrote: »

That's my main issue...I think both are good jobs, but 'offer 2' may have a better career progression route as I will be senior, but not yet in a management role.

Is 'offer 2' definitely a better paid job, when you consider commuting and car allowance etc. I am not sure how the tax works and what net pay will be?

http://www.uktaxcalculators.co.uk/

I used this - others are available. I assumed that £5000 car allowance is taxable and NIC so put that your salary was £52K.

I assumed that your 8K miles at 16p cost you 18p.
I assumed you wouldn't use it for a car, but would treat it as salary. :eek:

And that the £4500 in using your own car had no repairs or depreciation but cost you again 18p a mile. :eek:

If you know what your current car will cost you in a year, and you know you would use lease a car if you had the other job, and know the cost it's not hard to put it on a spreadsheet and work out.

Personally I don't believe in Carrots like career progression (you get to 40 and discover that it's all smoke and mirrors at the top), but I do believe in new experiences and further training.

I'd also look at the risks. you'll get no redundancy protection for 2 years in Job 2. Might like to factor in a 'policy'

Sam84

Thanks all.

My current employer doesn't know about my new offer, it is just a coincidence I have been offered a new role at the same time.

From my working out (or playing around on uktaxcalculators.co.uk - thanks P.o.D) it would seem I would be around £400 a month better off with 'offer 2'. But need to factor in the additional commuting costs of around £250 a month, meaning a real world £150 monthly increase. I suppose I need to weigh up whether I want the security of my existing job or the new adventures of a new job.

Maybe I am looking for support in moving jobs, I don't know.

Does anyone have any experience of claiming back tax relief on mileage rates?