Company car or allowance?

Ev0

Ev0

Ev0

Soldato
Joined
18 Oct 2002
Posts
14,198
Right I'm probably going for a new job soon and I've been told you either get a new A4 or £500 car allowance.

At first I thought wow £500 as I don't spend that now, but thinking about it the company car route seems ok, brand new nice-ish car, everything paid for etc.

What do people here do?

My guess is it'd be a 2.0TDi or something, which I think can be had contract hire for say £350 inc vat, leaving £150 on top to pay for everything else. Being a new car apart from servicing there shouldn't be too much to spend on it, apart from insurance and tax.

What do others get as an allowance, only if they want to say of course :)
 
[TW]Fox said:
Allowance, buy something really lovely, add some of your own cash to the allowance :)
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That was my initial thinking, whilst the job has a pay increase it's only pretty small, 12% (but prospects sound better) I'm not sure I'd do that just yet, could be a good opportunity to save some much needed cash and get a new car at the same time.

Haven't even got the job yet but when someone mentions free cars it gets my head ticking...
 
I get £462 as an allowance

wheb doing your calculations don't forget that this is taxable but on the good side you don't pay company car tax and get amap relief

I certainly have no regrets about opting out of the company car scheme
 
I would personally take the allowance OR take the company car and buy an utterly stupid sports car for the weekend!! WIN WIN ;)
 
the tax hit you take on a company car is insane. The car allowance is taxed at your current rate (afaik) and doesn't add to your calculated rate. Unless you have a very bad habit of crashing into things and braking cars all the time the car allowance is totally the best way to go.

Worth checking what the rules are on what car you have to drive (and the real practice, my last company you had to have at least 4 seats and <5 years old, but the hr director was driving a 99 boxter so everyone ignored that one...) You don't need to have a new car so just get something you like and can aford and pocket the change :D
 
Yeah guessing it'll have to be 4 door or something, just hope things go furtehr as it all sounds pretty good :) Maybe I can get a decent job for a change :P
 
mattpc said:
TBH R19 16V Charmade! ;) Pocket the difference!!! :)
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Been there, done that, got the pictures of it being written off :P Although wasn't the better handling but gayer looking chamade, just a stunning 3 door hatch :)

Couldn't have another, it just wouldn't be the same :(
 
I kno m8! I remember being jealous when you owned that. I was hankering for 16V at the time and part of me still wants one.
 
Siliconslave said:
th The car allowance is taxed at your current rate (afaik) and doesn't add to your calculated rate.
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don't understand what you mean , if you mean that a car allowance won't count towards pushing over a tax threshold then unfortunately it does
 
Rotty said:
don't understand what you mean , if you mean that a car allowance won't count towards pushing over a tax threshold then unfortunately it does
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thats what i ment, but obiously i'm wrong :) never quite got my head round the whole tax thing beyond "bend over and take it like a man" getting even more complex now i'm contracting!!
 
how does £500 compare with what you can actually get ?

looked at audi UK website, cant see anything about cost/month apart from just an OTR price.
 
500 quid allowance, I assume you are on 40% tax, so brings it down to 300 quid a month

If you took the car you would pay around 120 quid a month in tax for an A4 Diesel (the lease price will be more than 350 a month, 410 ish without VAT would be my estimate)

so basically..

if you take the car it will cost you around 120 quid a month,

if you dont you will gain around 420 a month ( 300 after income tax on your 500 allowance + the saving in tax you would have paid for having a company car )

personally, I take a car instead of an allowance, 120 quid in tax a month for hassle free motoring.
 
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