Car allowance advice

[Nobby]

Shit in the HR lasses knicker drawer

 

[ebb]

Would you not get taxed on the allowance? Is there not a cash alternative?

Think they mean stick a personal plate on and pretend it is newer than it is.

You can't put a personal plate on that makes the car look younger or are you just thinking that the company wouldn't check

 

[michelangelo]

Thinking just saying ah shit I just bought a 5yr old car & getting rid will cost me.

 

[Goat Eyes]

Thinking just saying ah shit I just bought a 5yr old car & getting rid will cost me.

Speak to your hiring manager rather than HR (if that’s who you’re speaking too). Just explain that it’ll cost you to change and can you keep it until you’re at least at parity.

 

[Phantom of mobs]

Alright, anyone on here a sales rep or owt?

Got offered a new job & comes with a decent allowance. They say you have to have a car under 4yr old - great but I only bought a car (thats 5 yr old) in
the summer. Got 10k finance outstanding on it.

Bit of a first world problem obviously but anyone on here got experience of that? Should I sell my car, get a newer one but then have big finance on it that the car allowance should more or less cover? Or is there a cleverer way?

Sorry if daft questions just my first experience of owt like this.

What sort of car do you have?

 

[Edinburgh Black Cat]

You can't put a personal plate on that makes the car look younger or are you just thinking that the company wouldn't check

It's not my suggestion, but aye, I think the suggestion is to put a plate on it with 'Ebb1' or whatever and hope you get away with it. Might work but it is a daft idea when literally anyone can check it on their phone in 20 seconds.

 

[jarramackem]

No one has specified what I’m meant to buy. My car when I first started was 6 years old but got a 6 month old one a year later. I work for a German company so probably difficult for them to enforce tbf and nothing about it in my contract so could probably get a MK3 Cortina if I wanted to

 

[Edinburgh Black Cat]

I do t think there is a tax difference?

Well there’s nothing fraudulent about being honest and saying you’ve got outstanding finance on a car you purchased 10 months ago.

Aye, nowt wrong with that. Have the conversation and see if they'll apply some discretion.

Torally different from taking it first (and presumably signing that your car is <4years) then trying to get round it.

 

[pfoz88]

I’ll used to do allowance in the past. I always used to buy a nice 3 y/o car with plenty of bells and whistles which wouldn’t go over the company mileage limit in the time I’d have it. I’d put about 75% of allowance into the car and save the rest for insurance, servicing etc. It was fine unless you got a big bill for something. Once my mileage went over 25k a year I switched to company car. Feels like more of a financial hit but more peace of mind.

 

[EchoMan]

Thinking just saying ah shit I just bought a 5yr old car & getting rid will cost me.

Honesty is the best policy as me mam used to say.

And if that doesn’t work borrow somebody’s car till they aren’t looking.

 

[pfoz88]

I always found the stipulations regarding type of car you have, age, mileage etc were a guide rather than set in stone. They basically don’t want you turning up in Del Boys van.

 

[JAZZMANB]

Aye the HR lass said it'll get checked when I go to head office. Cannot really see a way past selling mine off & getting a new one. Prob lose a bit on it but obv allowance means no car outgoings after.
What's this stuff about personalised plates?

An idiot with a computer will see how old your car is regardless of the reg in 2 minutes .
I'd say sell up and get a newer car .

I’ll used to do allowance in the past. I always used to buy a nice 3 y/o car with plenty of bells and whistles which wouldn’t go over the company mileage limit in the time I’d have it. I’d put about 75% of allowance into the car and save the rest for insurance, servicing etc. It was fine unless you got a big bill for something. Once my mileage went over 25k a year I switched to company car. Feels like more of a financial hit but more peace of mind.

Sounds messy
Always had a company car
They've cost more as the years have passed but you know where you stand money wise . No bills to pay

 

[Kevj]

Well apart from the potential tax differences and the possibility of being done/sacked for fraud...aye, same difference

I do t think there is a tax difference?

Well there’s nothing fraudulent about being honest and saying you’ve got outstanding finance on a car you purchased 10 months ago.

The main reason to provide a car allowance is to top up to the right salary band for that role, but the car allowance element isn’t subject to bonus or pension as a percentage of the whole salary.

 

[Dave Herbal]

All the people saying stick a new plate on it - I have to provide my tax, insurance and Mot certs - so they known how old it is. Mind, saying that, mine is supposed to be under 3 years old, but it’s actually 15 years old. I just say the allowance is at enough to pay for a car under 3 years.

 

[Pnematic]

Do companies pay Employers NI on the car allowance ? I thought this was a way to up your salary with employers contributing on the allowance bit ?

If the car allowance amount is lumped onto the salary then the company pays full Employers NI.

NB. I could be spouting shite here.

 

[Goat Eyes]

The main reason to provide a car allowance is to top up to the right salary band for that role, but the car allowance element isn’t subject to bonus or pension as a percentage of the whole salary.

The main reason is because you need a car for the role Shirley… Agree with bonus and pension but that’s to be expected.

 

[AndrewP]

All the people saying stick a new plate on it - I have to provide my tax, insurance and Mot certs - so they known how old it is. Mind, saying that, mine is supposed to be under 3 years old, but it’s actually 15 years old. I just say the allowance is at enough to pay for a car under 3 years.

How much is your allowance?

 

[DoctorMick]

You might get more for it than you paid for it if you sell it
And lease a new one

Definitely worth checking, the price of used cars has rocketed recently.

 

[Kevj]

The main reason is because you need a car for the role Shirley… Agree with bonus and pension but that’s to be expected.

I’d say not. I know a few places that do car allowance for roles which only need a car to get to and from work. It’s a cost saving exercise. Once you’re above a certain salary, the bonus payments or more correctly, the savings made on bonus payments make sense.

 

[pfoz88]

An idiot with a computer will see how old your car is regardless of the reg in 2 minutes .
I'd say sell up and get a newer car .

Sounds messy
Always had a company car
They've cost more as the years have passed but you know where you stand money wise . No bills to pay

That’s it in a nutshell, you know where you stand, no surprises. With the allowance tho I used to get a “better” car than what was available on the company list, basically whatever I could afford. Worked well for me until the mileage starts getting silly then it’s company car all the way. Doing between 40 and 50k a year now so no brainer.