Car Allowance Pros and Cons

D

dermocoll

Guest
Hi I am currently driving a 01 1.6 Opel Vectra which is a company car ...the company lease is up on the car and they are now trying to get me to take a car allowance of €8000 a year.
My contract states that a Company Car will be provided.
Do you think I should make the move?
How does their offer of €8K compare to other companies?
 
You car allowance will be taxed as normal income, but on the upside, the benefit in kind tax hit that are currently paying will go away. Car allowance is not usually taken into account on pensions contributions.

€8k seems fairly modest. With my employer, the entry-level car allowance is around €9k - €10k.
 
How many .....

Business miles would you expect to put up next year ?

How much would you get based on civil service mileage rates for that amount of travel ?

( this would not be taxable )


eDog
 
rates

What are the civil service rates?
In my conpany we get a flat rate of 50 cents a mile.
It was 65 cents but we were told to lower it during a tax audit.
 
Nice PDF Marion ....

But it may be out of date

Our accountant said something to me last week about the rates being revised recently and that the changes were backdated to the start of last year.

Then again I may well be wrong

Anyone needing hard facts might <shudder> phone The Revenue ( & post the result if you have time )


eDog
 
An allowance of €8k seems very reasonable for a 1.6 Opel Vectra, however it all depends on........

A) What mileage rate your employer will give you for business mileage

B) Your annual business mileage

C) What your current BIK is
 
Any advice on sole trader rates?

Howz about if you are operating as a "sole trader" any advice if your car is used say 75% business 25% pleasure?

Speedy
 
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