Car allowance

Pammela · 2023-04-12T06:27:08+00:00

Hi, if you receive a car allowance, do you only spend that or do too contribute bit more from your salary? DH has hit one as part of a new job but after tax the payments don’t cover much. Do you also put down your own deposit? Thanks!

Kfjsjdbd · 12/04/2023 07:53

I just take the extra money as salary. You don’t need to spend it on a car.

Original poster

Pammela · 12/04/2023 08:26

Kfjsjdbd · 12/04/2023 07:53

I just take the extra money as salary. You don’t need to spend it on a car.

The contract states you must provide certain things like mot etc and car mustn’t be anymore than 4 years old. He will also be travelling a bit, so I think we will need to replace one of the cars.

OP posts:

AreMyDucksinarow · 12/04/2023 08:38

This is why I get a bit funny about having a car allowance, I don’t want to take one out in my name etc, do they do a list of cars you can choose from? That’s what I wanted to do?

Greensleevevssnotnose · 12/04/2023 08:41

Car allowances I have had have never specified age of car or anything. I just carried on using my car and it was money towards the upkeep. I've only had the lower one around 6k which would not by me a decent car. If they are stipulating details about a car I would think they need to provide the vehicle. Why should you get into debt over something they want you to have?

daisybrown37 · 12/04/2023 08:43

I used to work somewhere with a car allowance, I used it towards the maintenance of our existing shared vehicle and tax etc.

The company removed the need for the car to be a certain age as this was unreasonable. However we did check driving licence. MOT and tax.

Original poster

Pammela · 12/04/2023 09:04

AreMyDucksinarow · 12/04/2023 08:38

This is why I get a bit funny about having a car allowance, I don’t want to take one out in my name etc, do they do a list of cars you can choose from? That’s what I wanted to do?

No, they don’t. We don’t particularly want to put a deposit down on a car and obviously you can be tied to a contract, which isn’t ideal either. Hopefully the job lasts a while but committing to a 4 year deal with expensive buy out option, doesn’t appeal very much initially.

OP posts:

BarbaraofSeville · 12/04/2023 09:04

Agree that if he needs a car to do his job, his employer should cover the cost.

Is it in his contract that he must supply the car? Does the car have to be 4 YO when he buys it or does the car always have to be under that age, ie he needs to change the car regularly (which is completely ridiculous unless they're paying).

We don't get a car allowance any more but we used to have a scheme where the employer took out a lease based on the total business and personal mileage and the cost was proportioned according to the business/private mileage split.

But he needs to look at the overall package. If the job is otherwise well paid, then this is something that can be overlooked, especially if he would need a car anyway. But if it doesn't look worth it or is making him pay for a car he wouldn't otherwise need, he needs to renegotiate or walk away.

Can he get away with buying a smaller/more basic car for his job, and if you need a family size car, make that the one that is mainly yours?

Original poster

Pammela · 12/04/2023 09:09

BarbaraofSeville · 12/04/2023 09:04

Agree that if he needs a car to do his job, his employer should cover the cost.

Is it in his contract that he must supply the car? Does the car have to be 4 YO when he buys it or does the car always have to be under that age, ie he needs to change the car regularly (which is completely ridiculous unless they're paying).

We don't get a car allowance any more but we used to have a scheme where the employer took out a lease based on the total business and personal mileage and the cost was proportioned according to the business/private mileage split.

But he needs to look at the overall package. If the job is otherwise well paid, then this is something that can be overlooked, especially if he would need a car anyway. But if it doesn't look worth it or is making him pay for a car he wouldn't otherwise need, he needs to renegotiate or walk away.

Can he get away with buying a smaller/more basic car for his job, and if you need a family size car, make that the one that is mainly yours?

I’ll get him to have a look at the document again. I can’t remember exactly what it said about the 4 years old- I just remember it stated the car shouldn’t be more than this..unsure if it’s ongoing, however.
The job is sales to large companies and will involve him travelling to different locations around the country.

We already have a family car and a runaround one- but both now over 4 years old. so we could trade the runaround one in but it won’t get very much.

He certainly thinks he’ll need a car, so we’ll have to figure something out. He’ll be reimbursed for the travel etc but otherwise it’s wfh.

OP posts:

JustFrustrated · 12/04/2023 09:20

I have a car allowance, after moving from a company car provided job.

The only stipulations are

Must have 5 doors
Not a sports car
Have a boot
Have breakdown recovery
The correct insurance
MOT and servicing.

If I already had a car, I wouldn't have changed it. But I didn't (changed jobs) so had to get one.

What about just leasing instead of buying?

JustFrustrated · 12/04/2023 09:21

Oh and the reimbursing for travel sweetens the deal further. 45p a mile is Nice

BarbaraofSeville · 12/04/2023 09:30

Reimbursement might only be for fuel costs if they pay a car allowance. So something else to check.

45 p a mile is quite a good deal.

HMRC rates which only cover fuel costs if you drive very carefully, not so much.

https://www.gov.uk/guidance/advisory-fuel-rates

Advisory fuel rates

Find out about advisory fuel rates for company car users, when you can use them, and how they're calculated.

https://www.gov.uk/guidance/advisory-fuel-rates

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