Mileage + Car allowance

ac1977

Hi,
When an employer offers a Basic salary + Car allowance, are mileage expenses expected to be included in the car allowance, or usually is mileage claimed back as additional expenses?
thanks

Obelisk29

Yep, petrol is included in the car allowance. It's meant to cover all the expenses of the car - insurance, tax, maintenance etc.

ac1977

ok thanks,
so basically that means that, say, a 7k car allowance would have to include:
- car loan repayments - about 3k - 5k p.a.
- mileage , say about - €100 * 48 working weeks = 4.8 k
- insurance + tax,

thus leaving me out of pocket?!

and are you taxed on the initial 7K aswell?

qwertz

Car allowance is fully taxed, just like your normal salary.

board om

it depends. there are a few differnt ways it can be done.

some companies give a flat car allowance each month and you pay for everything out of that. it could be anywhere from €600 upwards to €1300 per month.

other companies do a car allowance and then mileage on top of that. in this case it will usually be the smaller end of the car allowance scale and a small amount per mile. so say €700 car allowance and 20c per mile.

and then some companies just do mileage. this can be anywhere from 70c a mile upwards to €2.00 per mile.


i would always recommend getting a Petrol Card if you are getting paid for mileage. i got a really good statoil card. i fill up in any statoil garage and they swipe the card, then once a month i get an invoice emailed to me with the exact amount of petrol i got and they take the payment by Direct Debit. the price for petrol is cheaper with the card as well. what they do is every 2 weeks they get the lowest price they can offer and charge that amount. they usually text you the new price every 2 weeks. i used to go to the statoil on the quays and it was the most expensive garage in dublin, something insane like €1.79 per litre. but when i use the petrol card it only charges abour 98c per litre. so to fill up my car would be about €80 but i would only be charged about €50. it saved me a fortune.

if you are getting a good car allowance and you dont want to buy a car, you can hire a càr instead. a lad i worked with used to do it. every month he would drive to work in a 08 or 07 car (depending what year it was). he could change it every month and for €400 he would get the car, fully taxed and insured, breakdown cover, etc. i had never thought about until he said it to me but it is a great idea.

Dundhoone

Fixed allowences are taxable, if you are doing a lot of distance you are better off with a good rate per mile