Company Car vs Car Allowance

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petsounds

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Hey guys,

I currently have a company car and am paying approx €300 benefit in kind on it per month.

My employer said that he is going to look into getting rid of the company car and paying me an allowance on my own car instead. This would involve me buying my own car and having my employer pay me an allowance for using it for company use.

Has anyone any experience in this way? Would it work out better for me to stick with the company car? Would my insurance costs increase because I would be using it for 8 hours + a day? My employer has given me the choice, I can stick with the company car if I like.

Any opinions or own experiences welcome.

Thanks!
 
Similar experience here. The annual tax cost to you is 3600 Euro. If all your costs are met insurance, repairs private petrol as they are in my case and in addition you can have the car chenged every 3-4 years then the current position still remains the best one IMO. Only negative is in the event of losing/changing job the car goes unlees some prior agreement is reached. I have such with my employer.
 
All depends on the amount of allowance and how much you would spend on fuel/servicing etc.
Also what your insurance is likely to be.
I had a company car paying about 320/month in bik and went to car allowance of 800/month (about 420 after tax).
So in reality, I was gaining appox740 euro after tax per month.
In my situation, I can easily cover all my expenses and have some left over,
but its not the same for everyone.
 
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