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Company car was or allowance??

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I'm sure many of you will of been through this before now.....ive got the choice of going through the company SS scheme or taking an allowance.

Can't use the box because rules state 4 seats! My box is my weekend car anyway.

Working out the take home pay for the SSS seems difficult. Anyone made the change recently? How has it worked out? 




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Your circumstances have to be the main factor and only you know those. I used an 05 Boxster as my daily and work car for nearly 3 years but claimed per mile for work use and paid for business use on the insurance policy, claiming £0.45 per mile based on trust. I now have a similar mileage rate but get a small allowance and chose to lease a car instead as the current set up is a lot more formal, with usage and app based route tracking etc

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Companies rarely change things to benefit employees, it's usually to save them money!

However depending on your circumstances you may also benefit.

Not an easy question to answer without knowing your personal circumstances, the amount of allowance, rules around choice of car, age of car, etc.

What taking the allowance will usually give you is more choice - however some firms will still set rules as to the type of car you can use for work, eg. no 2 seaters open topped sports cars, nothing smaller than a Mini, etc, etc.

Get a sheet of paper, do the maths, list the pros and cons, then decide which option is best option for you, only you can decide I'm afraid!


Edited by RBD914 v2
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Opted out of company cars 20 years ago. No brainer that I am better off in my own vehicle, but stop reading if you like having a new car every 3-4 years. 

I got myself a MK1 Ford focus 1.8 Ghia and ran it for 4 years. Pocketed 20k in that time and spent minimal on the Focus (just regular servicing) 

After that I started buying BMW's , tend to buy cash 1 year old and keep for 5-6 years. 

No regrets as I don't need a new poverty spec Hyundai, Toyota or VW every 3-4 years. 

Company pays us 20p/mile and at the end of the tax year, I claim the difference from the tax man which is currently set at 45p/mile

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So much will depend on the company car list, how much the allowance is & the rules around it, and what your personal circumstances/preferences are

I take an allowance. Initially the main reason was nothing to do with the car, but because it's a fixed income, it enabled me to get a bigger mortgage!

15yrs later I still take the allowance, even as a high mileage driver. Main reasons being:

     1) The allowance is comparatively generous compared to the list of company cars available

     2) I'm not fussed about driving around in the latest / flashiest car

     3) As long as it has 4 seats, <10yrs old, presentable & regularly serviced/MOT'd, I can drive what I want regardless of it's worth


With the allowance I save 50% for the next car, approx. 25% on running costs and the rest pays for the Boxster 👍




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