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Car Allowance

(12 Posts)
Issy2008 Mon 27-Jul-09 19:52:11

I'm about to go back to work part time. Part of my package at the moment is a car allowance, but does my employer have to keep offering this to me if I change from FT to PT?


flowerybeanbag Mon 27-Jul-09 19:58:00

If it's a car allowance rather than an actual car they may just pro-rata it and pay you a proportion in line with your new reduced hours and salary.

Issy2008 Mon 27-Jul-09 20:05:15

But I could have had a company car- I just chose to have the car allowance. They couldn't have done anything to pro rata if if that had been the case! It's a benefit ratehr than part of my salary so I'm not sure if they can remove it/ pro rata it. Fingers crosed they don't!

Cosette Mon 27-Jul-09 20:12:29

I have a company car allowance, and they have pro-rated it. I think if I'd have gone for a car rather than the allowance then I would have kept it until the lease expired, and then it would have been pro-rated.

flowerybeanbag Mon 27-Jul-09 20:13:23

Of course you have a good argument for keeping the whole allowance as (presumably) it is for the purpose of purchasing/leasing a car for work use, and you can't purchase/lease half a car or purchase/lease a car for half a week. So if they do want to pro rata it you should definitely argue against it as you would be forced to effectively pay the other half yourself. But there's nothing specifically saying they can't just because it's a benefit. Lots of benefits are pro rata - holiday for example.

Issy2008 Mon 27-Jul-09 20:27:33

It was also part of a deal I was offered after I passed my professional qualifications so I feel if it's taken away, I really am on the same footing as those in the office who aren't qualified. I'll just have to wait and see what they say. I kind of wish I'd got a big expensive company car now!

flowerybeanbag Mon 27-Jul-09 20:34:33

I very much doubt they'd want to take it away altogether, assuming you are doing the same job as before. But pro rating it would be fair enough, particularly if it's a perk you got for becoming more qualified rather than something they require you to have to do your job, if that makes sense.

You say you wish you'd got a 'big expensive company car' instead - well, it's just as likely they'd be unable to justify the cost of something like that for someone part time so they may well have taken that away and given you a pro rata allowance instead...

pasturesnew Mon 27-Jul-09 20:36:02

I think you might get to keep it actually, it is a benefit, as you say. Fingers crossed!

flowerybeanbag Mon 27-Jul-09 20:39:40

See what they say. You would have a better argument if it was an allowance to provide you with an essential business tool for your job, rather than a benefit just for you, and certainly there's no reason a benefit can't be pro rated along with your salary, pension contributions, holiday and other benefits. But it's worth a discussion anyway if they do want to reduce it.

nymphadora Mon 27-Jul-09 21:10:56

My car allowance isn't pro-rata .That was a nice surprise in my first pay packet!

Issy2008 Mon 27-Jul-09 21:29:02

I have to have a car for my job, but if I didn't have a company car/ car allowance I would be able to claim mileage. If I did have an expensive company car they wouldn't be able to return it to the leasing comany until the contract was up so wouldn't be able to take it away from me. I just hope they don't decide to pro rata it- and will have to be robust to stop them doing it!

llareggub Mon 27-Jul-09 21:56:38

Mine isn't pro-rata either. I've always wondered why not but can't see a day when I'd query it!

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