what does car allowance mean?

[flopsyandjim]

I saw a job that I would like except its lower salary than what I'm currently on. It is advertised as £x plus car allowance.

Not sure what that means? Is it a company car? Is it fuel expenses paid? Is it money to buy a car?

I already have a car on PCP so do not really want a new one, I like my little car.

Is it possible to get the car allowance added onto my salary instead so that the annual salary is higher, or would it be a one off payment?

How much is a car allowance normally? This is a national charity.

Normally it’ll be an amount per month and you can then claim mileage on top.

It’ll want to be £450 per month + (you get taxed on this amount£

You’ll need to buy or lease a car, insure it, service it etc.

Some organisations have a restriction on what car you can have - number of doors/age etc.

We get £6K PA plus 0.17p per mile mileage. Out of the car allowance we run our own cars, although we have no restrictions on make, model etc. It works out well for me as I don't actually do that much driving with work and any I do do is mostly motorway/town driving. But I have a few colleagues who cover much larger rural areas and it's not as good a deal for them! So worth taking what your "patch" is likely to be.

so £450 pm is the minimum it could be?

And mileage would be extra (not included)?

There's no set minimum, you'd have to ask how much it is.

Whether you need a new car will depend on whether they have any restrictions as to what kind/age of car you have. It may be that you are fine with your current car.

It may be that you are fine with your current car.

Although you'd need to add business use to your insurance if they are expecting you to use it to visit clients etc.

It is usually in lieu of a company car, towards your running costs and mileage. It is taxable though.

Also be aware that if you take the car allowance it will probably be excluded from pay rises. So an easy example. Salary is 100 car allowance is 10. You get a 5 percent pay rise and your pay the next year is 105 (ie the 100 plus five percent rise) plus the 10 so 115. The 10 car allowance isn’t increased.

Ours is 450 pm and roses to 510 for senior managers, you can either get a car from our scheme so a list of vehicles is provided or you can get the allowance in your salary, if using one existing car you need to ensure your insurance knows and it covers business use, our mileage claims are based on HMRC recommendations so very based on fuel type and engine size but from about 11p to 17/18p I think

I get £450/month, taxed and its up to me what car I buy.

As I travel a lot of long distances, I actually use the train/fly a lot (work are ok with this) so I just got an old banger for £2k and use this for the shorter distances. It's effectively just extra salary for me.