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Car Allowances


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Here's a new question;

I've been offered a new job. Package includes a car allowance, but there is unlikley to be any need to travel (occasional trip to the smoke, but this can be done on the train). Office is a 10min drive from house along country lanes.

Company mandate that you must have a car <5yrs old, non-2door. Clearly concerned about their image. My Boxster meets none of these criteria, but is very well cared for and probably looks smarter than most 3 year old cars out there.

Question is, I won't be getting rid of the Bosxter, and I don't really want to buy a second car just for this purpose, it's a complete waste of time, and money. Can a company mandate these terms? I'm tempted just to ignore the policy and rock up in the Boxster each day.

Any sage advice out there?

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This is normal practice for car allowances. The subtle difference is whether you have a 'need' car and whether their policy will allow a change here.

I have a company car, but don't need it. But I must still have a diesel4/5 door.

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Our policy is must be 4 seats and prefer 4 door - to allow transport of customers/guests.

If you have a company car however it must be availabe for other me,mbers of staff to drive too.

Those that have opted out and taken the cash however have small cars or a mini.

Clarify the rules, especially if you are not customer facing. Then go speak to an accountant or HR to clarify the tax rules before opting out and putting the ££ in a savings account for a 981

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I've managed to keep out of the company car scheme for nearly 9 years and whilst on reflection the sensible stance would've been to take the BMW320d that everyone has, I've enjoyed reasonably frequent changes to cars and had more fun.

The potential upside to taking the cash option and running your own car, is that they may pay a different "rate per mile" when driving on business. If you infrequently drive on business, it might turn out viable to have rent-a-car drop you a small diesel car for the day. Once did that when my car was broken & a trip to Swindon & back at 35p per mile just about covered the days hire & fuel. (Company no longer pays me 35p per mile though sadly !

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