What is a car allowance?

M Dogg

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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

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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

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

Cheese & Biscuits

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

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