Offered a new role internally with car allowance of 4k

staffspeted · 19 Apr 2018 at 21:20

My current firm has given me a choice of redundancy after 13 years service or a new role. I had to apply for this and was successful.
I am trying to take the 'well I have a job I suppose' factor out and do the the maths.
My current role is £34,680 with mileage allowance of 0.45 / 0.25 ppm 10,000 -/+.
On top of salary I claim back into my bank around £300 per month thanks to the mileage claims.

New role offered is £35,000 with a £4,000 car allowance or car. Mileage rate will be 0.11ppm based on my current 07 plate car which I still have a year left to pay off.
I know I can use a P87 to claim back tax relief on 0.34ppm.

I dont really think the car is an option as the tax would make me financially worse off.
Question is will I be worse off , better or about even?
Mileage is to various sites with an average guess of 12,000 per year.
Perhaps redundancy is better?

Its a minefield of information out there, just wanted forum members views?

HangTime · 19 Apr 2018 at 22:35

Personally I would take redundancy if I had that length of service; should get at least 13 weeks pay, more if you are over 40, which is tax free so should be the equivalent of at least 4 months take home. But I guess it depends a bit on how easy you think it would be to find another job paying more money.

khrall · 19 Apr 2018 at 22:41

You have the right to a 4 week trial period for any alternative employment you’re offered.

Take the role, look for a new job, get new job, claim the redundancy - obviously within a very limited time frame (see if you can get an extended probation period).

mjt · 20 Apr 2018 at 00:20

Could be worth posting in the Careers section as well for more careers-related advice @staffspeted

IAmATeaf · 20 Apr 2018 at 15:44

So in terms of the overall package you are on almost level terms with the tax reclaim on mileage being on top? Surely the real question is does the new role interest you ?

Semple · 20 Apr 2018 at 16:22

The above question is quite key. No point taking the new role on similar money if it isn't one that interests you.

staffspeted · 21 Apr 2018 at 10:44

Thanks Guys for the replies. The new role does interest me but if it is to my benefit. My hours will reduce from 50 pw to 37.5 pw. But with any progression you need to be either static or better off to make it worth its while. The sums on both are just too close to call even if I took the car! Will ponder over it this weekend and do the number crunching!

IAmATeaf · 21 Apr 2018 at 12:35

What do you mean by “if it is to my benefit” makes it sound like you are unsure. The reduction in hours, to me would be a big bonus so you do need to take that into account.

Begbie · 21 Apr 2018 at 12:37

13 hours less and the same money?

No brainer, unless the job doesn't interest you, or you can get the redundancy and get a equivalent/better paid job.

staffspeted · 21 Apr 2018 at 13:14

IAmATeaf said:
What do you mean by “if it is to my benefit” makes it sound like you are unsure. The reduction in hours, to me would be a big bonus so you do need to take that into account.

Yes I am unsure. The role does interest me but is an upscaling of responsibilty plus I still have Management of my old role after several elements have been delegated. So in effect they are getting some of my services for nothing. Its a transition from Security Manager on 30 sites to Facilities Manager on 12 sites while still looking after Security on the 30 sites though at a scaled back role.

Haggisman · 21 Apr 2018 at 13:55

Begbie said:
13 hours less and the same money?

No brainer, unless the job doesn't interest you, or you can get the redundancy and get a equivalent/better paid job.

This. If I could get paid the same as I am currently with a 25% reduction in hours, I'd jump at the chance if the role appealed to me

Begbie · 21 Apr 2018 at 14:40

Haggisman said:
This. If I could get paid the same as I am currently with a 25% reduction in hours, I'd jump at the chance if the role appealed to me

I'd take a paycut to do less hours.

Infact I'm hoping I will next year, the less hours part. The paycut is happening

Rotty · 21 Apr 2018 at 23:33

That's a poor allowance and mileage rate

Mine is £5.5k and 16.5p a mile and that's not great

sanaxe1 · 22 Apr 2018 at 06:19

staffspeted said:
Yes I am unsure. The role does interest me but is an upscaling of responsibilty plus I still have Management of my old role after several elements have been delegated. So in effect they are getting some of my services for nothing. Its a transition from Security Manager on 30 sites to Facilities Manager on 12 sites while still looking after Security on the 30 sites though at a scaled back role.

Sounds to me like it will be a 37.5hr job on paper only.