Right what are your thoughts on this ?
I took my most recent job 6 months ago and was told that it did not come with car allowance or company car – they would happily give me 45ppm to run mine for business.
Hey ho no issue I get about 28ppm back after fuel its been a good earner and I can still throw my bike in the back of it without being worried.
The other sales guy has a car and same salary but gets 15ppm, now they have just taken another sales guy on who is also getting a company car (also the boss’s son but that’s another issue) I’m due my probation review – which I know I will pass as been told so and sales have been frankly very good.
Would you ask for parity with other staff in the review – Car or car allowance or take the 45ppm ?? – doing average 1200 miles per month.
If you want a company car and a chance to review your salary is coming up then you can always ask/try and justify it to them.
Remember you do get taxed BIK on a company car. You would need to have a think if its worth it.
For reference, most jobs I know of (with a car on offer obviously) offer either a company car (which you then pay tax on) or a car allowance (taxed as salary) with mileage in addition (at the rate you mentioned you get) - eg you can have a car up to x value or you can get £y extra salary each year (theoretically to buy a car). I think you're being done over...
Crispo and clubber
Thanks for your time to answer - My last role i had a 5k car allowance or car - i took the 5k - going to bring it up with the sales director tomorrow and if not answered satisfactoraly bring it up in my formal review with HR on the 7th - think im losing out also.
On the mileage you're doing, a car allowance [as long as it's reasonable] would normally work out best financially but you need to do your sums before you ask.
Remember even if they reduce your mileage rate to 15p, you'll be able to claim back the tax on another 30ppm for the 1st 10k and then 10p [I think] thereafter.
Yes, they seem to have forgotten your car allowance if running your own car, which is usually the norm on top of mileage. The others 15ppm is just fuel only as running a company car while your 45pm is to also cover fuel plus running costs - both are usually HMRC approved figures.
The other thing to consider is that HMRC only allow 45p per mile for the 1st 10,000 miles. HMRC allow 25p per mile thereafter, so If you still get 45p a mile you will have a tax liability on the extra 20p per mile.
If they're paying 45ppm to use your own car, that's to cover fuel [b]and[/b] running costs, and is reasonable.
If they pay you a car allowance they may well reduce your ppm amount to just cover fuel, as the allowance is deemed to cover the running costs. Again, reasonable
If you get a company car it's taxed BIK, as others have said.
The only way to know which is best for you is to do the maths based on the mileage that you do.
Well if anyones interested - Got a car up to value of £340 pcm lease - 5k payrise and a £500 Expenses Float per month..
All in all a nice result - !