Cash Allowance for Car

biggarnut01

I'm being offered a cash allowance instead of a company car for a new salaried job and would appreciate anyone's guidance on the best way to make this financially work for myself so that I pay the minimum amount of tax and also so I can negotiate the best means for how fuel mileage is settled.


Any thoughts welcome.

engineer_amy

Found these links which should be of some use to you.


The first explains the tax implications of both with worked examples, and advises that the rules changed in April of this year (I wasn't aware), with different scenarios.
The second allows a direct comparison. (I haven't checked this for accuracy, but hopefully will be a good guide)




https://www.clm.co.uk/company-car-tax/#cash


http://comcar.co.uk/cashorcar/


Just remember that with the company car, the employer is generally responsible for insurance,tax, MOT, maintenance, depreciation etc etc. With a cash allowance, this becomes your responsibility. Depending on the mileage allowance the company will give you, this may make up for some of those costs plus wear and tear.