Offered a new role internally with car allowance of 4k

staffspeted · 21 Apr 2018 at 10:47

This was posted originally in the motors section but on advice I have posted here.

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, but I would have a worry free , cost free vehicle.
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?

D3K · 21 Apr 2018 at 10:55

You're really asking 2 questions here - are these car numbers worth it compared to the old numbers, or is the redundancy better than these "numbers".... which is a weird question we can't answer without the redundancy numbers, or your ambition.

If you work in an industry where you can easily get a new job, and the redundancy covers more than the time you will be unemployed then it's a no-brainer imo.

As for the cars... too many questions. Is your company currently paying for your insurance? How much are you paying on the car for this year? Do you intend to keep that car for a long time? How much are you paying for servicing?

Hagar · 23 Apr 2018 at 12:23

Statutory redundancy is 1 week per year of service (or 1.5 weeks for service over 41) I think. But it is not your earnings, but possibly a lesser figure.

Length of service is capped at 20 years.

If you were made redundant on or after 6 April 2018, your weekly pay is capped at £508 and the maximum statutory redundancy pay you can get is £15,240. (Gov.uk)

craptakular · 23 Apr 2018 at 17:37

no job or £35k and car... tough choice.

AHarvey · 23 Apr 2018 at 18:57

Think of it this way, you could take the redundancy now and look for a new job. When they ask what you're doing now and what you're earning you'll reply with "I was earning £35k but i'm now unemployed" so you have no bargaining power.

With the new role and the extra £4k car allowance when they ask you what you earn you reply with £39k, and you're employed. You've much greater bargaining power for a new role.