Car allowance but bad credit

andylong42

Just had confirmation that this is tax free and paid separately to my wage if that makes sense?

MisterBaxter

andylong42 wrote: »

Just had confirmation that this is tax free and paid separately to my wage if that makes sense?

I can't see that they could pay you for a car tax free, it would normally be considered income and taxed accordingly. If the don't pay it through PAYE somehow then you may still be liable for tax to HMRC. Worth checking out before you assume that you have the full £350 to spend.

andylong42

Sorry, after tax not tax free - I appreciate that there is a big difference!

MEM62

Remember that, no only will you be receiving a car allowance but you will not be paying tax on your current company car so factor that in and the monthly difference may be larger than £350.

If they will consider a car after 12 months then get a cheap banger to cover you for the first year.

Alternatively, speak with your new employer and explain that you cannot finance a car. You don't have to say it is because of bad credit - you could suggest that it is an affordability issue. (ie Mortgage and other commitments high so responsible lenders would reject you on affordability) You have nothing to loose so don't walk away from a good job offer just because you don't want to tell them that you cannot finance a car.

andylong42

Thanks MEM62.

I struggle to work out what the tax costs me. I have the car, plus a fuel card with private mileage. I get 500 private miles a month and have to pay everything back over that. I've never known whether this is a bad thing as surely if I am paying tax on private miles as a benefit then I am in effect paying double by having a limit set by my employer?

The world of tax baffles me!

MEM62

Easy to work out. Let me have the make, model, year and P11D value of the car and I'll look it up for you.

heartbreak_star

Another vote for getting a banger to cover you for a year

Don't let the job go!

HBS x