Hiring a Rep

Nuttzz

I am think of hiring a rep, he/she will do about 30k a year, what is better from a companys point of view to get them a company car or to pay a mileage allowance. Also what is a reasonable mileage allowance

Borzoi

Nuttzz wrote:

I am think of hiring a rep, he/she will do about 30k a year, what is better from a companys point of view to get them a company car or to pay a mileage allowance. Also what is a reasonable mileage allowance

A reasonable mileage alloawance is about the 60cent per mile, the civil service also have a guide, and if you stay below that your employee will certainly pay no tax on his mileage claim.

So taking your 30K miles per annum, will cost your company €18,000 per year as a mileage payout to the rep.

If you buy a €30K car, say a typical Laguna/Mondeo rep car, you'll probably change it after two years, and get roughly half that back to go towards the new car, so:
Direct cost of car over two years: €15000
Tax for two years €1000
Servicing for two years €1000
Petrol two years €9000
Insurance two years €1500 could be more/less

Total cost to your firm: €27,500 over 2 years as opposed to direct milage payments of €36,000.

Figures are approximate - to guive you an idea

Gilgamesh

I woudl agree with the above.
the other consideration is, about insurance.
If you would have a company car for your rep and they plough it into a tree, you/your company are the one who get's burnt by the insurance.
personally I always went for the mileage, more cost effective for your company.