Car allowance help!

[simonkarios]

Hi all,

My first post here so hello and many thanks for , hopefully your help!

I have a new job where i get a £6k car allowance and wondered if you could offer some assistance?

I believe it is taxed at source and payed monthly. I will also get 35p business mileage.

My question is what is the best way of utilising this allowance? I am looking for ideas that best suit tax, fuel economy and oh by the way i LOVE gadjets and hence some cars that you suggest that are stacked in that area would be great.Size wise, probably astra/megane and maybe slightly bigger.

Hope the above makes sense and many thanks for your help:thumbs:

 

[empip]

Here is some griff ...
http://www.clearlybusiness.com/finance/tx_company_car_tax.jsp

http://www.hmrc.gov.uk/cars/

Check it all out.

 

[johnny_t]

If its a car allowance, then it is taxed at source so you will see somewhere between £3600 and £4680 per year in your pay packet, depending on your tax rate. Next thing you need to know is how many company miles you are going to do, and how much its is going to cost in petrol to run (10p per mile is a reasonable guess for a car) so you are going to have, lets say, 25p x number of miles to add to your budget.

Knock off your tax, insurance, and for good measure another £1000 for servicing & MoT, make sure your repayments are less than what's left and in a few years you've got a free car on the company.

Can't really advise on the type of car, as everyone would be driving round in Rover 620s if it was down to me. Citroen Xsara Picasso is pretty good, if you want something for the family as well.

 

[BoDon]

I have worked for some companies which give a 'car allowance', two ways of looking at it.

Firstly:
They introduced a Car Allowance (CA) because their company wage structure, could not equal the salary 'potential' experienced employees expected (in other words the 'basic' pay was cr*p) so they introduced an 'incentive' bonus if you like, to 'bump-up' the salary to a half decent wage, without upsetting the investors/shareholders.

Secondly:
You will notice that in your contract your CA can be withdrawn, if the company wishes to do so. In effect your company has you by the balls (financially).
Bewarned, so don't loose your licence and don't get into too much debt - larger mortgage etc.... also remember don't be late for work! they are effectively paying for you to be on time!! no excuses my car wouldn't start etc...

Best wishes in your new employment.

 

[keyplayer]

by the way i LOVE gadjets (sic)

I believe Mr Bonds Aston Martin is up for auction if your CA can stretch that far. Perfect for giving the unpopular line manager a lift (half way) home. May need dry cleaning first.

 

[Tesla]

Have a look at a Mondeo.

Make sure you have a look at one in Ghia X form though if you are a gadget lover.

 

[Brightness]

You could probably do worse than a Nissan Almera. They are extremely reliable, comfortable and quite fast too. The looks I've had from blokes in Mondeos when I comfortably overtake them on the M Way are priceless!

Road holding is really good and so is the ABS, boot room and back seat leg room is ample (I have 2 teenagers, one almost 6ft, one 6ft 3"). I only have a 3 door but next time will def go for a 5 door, more for convenience than anything.

Hubby has a Primera sport plus Estate & travels quite a bit for work, that's a lovely drive too. Good luck with whatever you decide