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Just going through the (undoubtedly futile) exercise of asking for more cash.
One of the things I don't get - but probably would with another organisation - is a car allowance. The obvious answer in my search for more money is to turn this into a gross pay equivalent.
Can anyone help me out?
Cheers
Its just like a pay rise. Only difference (for me and most others I would assume) is that its non pensionable and not subject to an annual increment. Also means that business milage is paid at 11p rather than 40p (or whatever that is now). However you can claim the tax on the difference ie 40%X(40p-11p)
Yup pretty much as djglover said.
But in some cases with the right car choice it can work out cheaper than owning most cars too. So your saving can be on car ownership rather than extra salary.
Yep, tax-wise it's effectively extra salary.
Our policy (for new starters now, at least) is that if you'll be doing >8k business miles, you qualify for car allowance, >15k and you qualify for a company car (but can stay on allowance if you want).
Roughly what percentage of gross annual salary does the allowance make up?
in my case, around 6% (the car payment hasn't increased in the last 10 years)
in some companies, having a car allowance means you have to run a car up to x years old, up to x miles - in my mates company its a 4 seat, 4 door car, up to 4 years old with under 60,000 miles. They have a lot of clients and consider that if they're paying full whack for a car, they don't want him turning up in some old banger.
in my company, there are no restrictions. I've had a total of 15k in company car payments, yet still run a mondeo I bought for under a grand before I was eligable for the scheme 🙂
[i]Also means that business milage is paid at 11p rather than 40p (or whatever that is now). However you can claim the tax on the difference ie 40%X(40p-11p) [/i]
Everywhere I've worked the mileage claim is still the same, irrelevent whether you get an allowance or not.
But the tax claim is still relevent if less than 45p per mile (first 10k).
Everywhere I've worked the mileage claim is still the same, irrelevent whether you get an allowance or not.But the tax claim is still relevent if less than 45p per mile (first 10k).
down here, the rate is 10p if you have a company car, but 40p if you have the allowance or if you don't get anything
5lab - cheers. Like I say, it's probably going to be academic (and TBF I don't require a car allowance if I can get a decent cash position).