I am currently reviewing our company car allowances to make sure that they are in line with UK averages. Croner shows £10300 for Directors which to me seems a little high. Is this really the average out there? Any thoughts/comments would be most welcome. Thanks
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Why do you want to be "in line with UK averages"?
Many people behave differently when they're spending someone else's money - would they buy gas guzzling behemoths out of their own pocket?
It's not just the car/car allowance but the entire remuneration package, even more so if it's a cash allowance (rather than a permitted lease cost).
Ask Croner where they got their number. Do they include all the directors who get no "car allowance" at all?
What's the point of a car allowance anyway? Give me more salary every time.
Car allowances are just salary, surely?
Only difference being they can be excluded from being pensionable, and need not be increased in line with basic pay (should that increase)
However, if a car allowance is paid, in my experience the mileage rate is at the cost to reimburse the fuel say 10p, rather than the typical 45p/mile as the car allowance includes depreciation/insurance etc.
How about setting a new standard? Get to the front of the pack, rather than waiting for last year's averages to be published next year, leaving you at least two years behind the pack?
Here's an ahead-of-trend thought: £6k for a standard car, £10k for an electric one and £15k for directors that give up having a car. You could call this last a non-car allowance.
You read it here first.
I'm in the construction industry. £1bn turnover. Directors get either £7.3k, £8k or £9.2k depending on level of seniority. Hope this is helpful.