I know I should know this and I also know it varies. BUT a company car has been offered as part of the deal (along with other nice stuff) but how does it work then? Do you get a choice? Can your partner drive it? How did I get to 43 and not know these things???
I wonder if you had any experiences you could share as we are in the negotiation stages for a big relocation and we need to know the ropes..
It is 55p a mile which is a lot right? An no there is no fuel card which is ironic being as it is an oil company..............
I think it is a perk actually because they offered him a higher salary too.... which was unexpected. And apparently no list to choose from just an allowance. They don't do company cars as a rule apparently but they are trying to seduce him with goodies. The tax bill will be phenomenal!
I am assuming though if we lease something or other we don't have to spend it all do we? Actually I am happy with a tatty motor and I need a 4 x 4. That just seems like ever such a lot of dosh just for a car
If we get a car allowance it is expected to be under 5 years old and have 4/5 doors plus be 'respectable'.
As you are taxed on the allowance, that £600 will be £400 in his pocket - which would pay the lease and service (but not cover tyres etc) on a Mercedes A Class for example. I get 16p a mile for business miles (HMRC limit) which barely covers the diesel these days
Well it all seems a lot to me either way but yes will check about the tax and mileage situation.... The tax bill for all this is going to be v. high so I will have to work it out. Looks good on the surface though.
The car allowance will be paid along with the monthly salary; it will be included as income and will be subject to 40% tax (as you said your husband is a higher rate payer). So you will probably end up with around £400 net to use towards a car and related expenses, which is still a pretty good perk.
Getting a general car allowance usually means you have to pay your own car costs; tax, insurance, servicing etc and you also often receive a lower mileage rate than non-car allowance staff (as your company are already contributing towards 'wear and tear' on your car).
I've had company cars and also separately car allowances, and my preference has always been the car allowance.. more versatility, you can spend it on what you like (within reason) and you get to actually own the car.
One of the expectations from my firms mean that getting a car allowance also meant for that I would be expected to drive to various locations (within a limited distance) rather than get a train, cab or hire car - so if it's the only car for your family, you'd have to expect the working partner to use it when required.
I have known colleagues NOT to buy a car even if they receive car allowance, which is fine for example if you lived in central london and didn't need one.. they only thing those colleagues had to do was hire their own car or pay for their own train travel and and when was needed.