What is a car allowance?

[M Dogg]

I am trying to get my head around it. Obviously if I get the allowance rather than a company car, the company will get their own tax breaks. But do I actually have to use it on a car? Seems daft, as some people won't want a car or need a car, particularly living in London. Is it just additional cash to my salary?

 

[Cheese & Biscuits]

Pretty much, yes. In my place I get an allowance that is paid in my salary. I can do what I like with it. The only difference between it and my salary is that it's not pensionable.

 

[M Dogg]

Ah brilliant. So no caveat that it actually goes towards a car

 

[Cheese & Biscuits]

Not here but I'd check with work. I can't imagine they'd be able to check up on such things anyway.