Went for a job interview today for an Area Supervisor. they were originally offering a company car but then discussed the option of mileage allowance etc due to income tax implications. Can anyone enlighten me about the options, benefits etc. thanks

I have a car allowance and claim fuel back. I think it works out better money wise - but I'd rather have a co car with all the maintenance and servicing etc for convenience.

Carla has it spot on :D

Daisy

would have to agree with Carla and Daisy, hubby has a company car and the amount of tax he pays is unbelievable BUT if you are doing a lot of miles (hubby drives a round trip of 200 miles to get to work every day) then the servicing and instant repairs when anything goes wrong is a godsend, because of the miles he does the servicing light goes every 4 months and the wear and tear that needs sorting is a LOT. If it were me I would really look at the amount of miles that you will be doing and weigh it up from there.

If you run your own car you get 40p per mile (your firm CAN pay you more, but you will pay tax on it :( ) for the first 10,000 miles then 25p per mile after that - can amount to quite a lot of money, but it does depend on the individual putting by a fair chunk of the money for repairs, insurance etc AND replacing the car eventually. See http://cccfcalculator.inlandrevenue.gov.uk/CCF0.aspx if you can face calculating what tax you might pay on a company car :D :D

Daisy

It does really depend on how much mileage you are going to do.  If it is local mileage, then an allowance would work out much better, especially if your car is economical on petrol.

Carla has the good point with any "car problems"

Both my Dad and Boyfried have company cars and they have been swiftly, with no hassle, sorted out with hire cars although accidents/problems were sometimes their fault.

My dad had an operation on his left foot at one point so company gave him an automatic so he could still drive and not use public transport whilst on cruches.

Also with most company cars as they are leased they are replaced every 3-4 years :)

I take the mileage now, for me this is my preferred option. I have what size of car I like then.  I always buy cars carefully so overall I think this works out better.

As others have said it does depend on mileage, but one other consideration is do you currently have a car.  I took a company car because I had an old car that needed replacing and the company were offering cars that I could not have afforded to buy new.  Other people here took the allowence because they already had a decent car.  One great thing about company cars is that all the servicing etc is paid for so no repair worries.

It all depends I supose on what works out best for you