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Company Car Or Company Car Allowance – Which Should I Choose

If you have the choice of a Company Car or Company Car Allowance, you should check out how much Company Car Tax (or Benefit In Kind Tax as it is also known) that you would pay if you accept a company vehicle, and then decide whether to go for the Company Car or cash. You could be better off taking the car allowance and leasing a car yourself, even though the allowance is taxable.

The Cash for Car scheme has become increasingly popular with both employers and employees in recent years. Employers save time and money in not having to source, maintain and administer a fleet, although they must always be aware of their Duty of Care and Health & Safety responsibilities. And as an employee, you have more freedom to choose the car you drive, and you could even be better off if you dont spend all of the company car allowance you receive. However, some employers do stipulate the type and age of vehicle that is acceptable, according to the job you are doing.

If you choose to accept a Company Car Allowance, its worth considering Car Leasing vs Buying. Car Leasing (also known as Contract Hire) is simply the hiring of a vehicle for an agreed period of time for a fixed monthly rental. Unlike Short Term Rental or daily rental, a car lease is usually for 2-5 years, after which you can simply hand the car back with no further commitment or, in some case, you may be able to purchase the vehicle if you wish. Car Leasing is a convenient, cost-effective and hassle-free way of financing a new vehicle, and there are many benefits of leasing a car. It enables easy budgeting of your motoring costs, and the fixed monthly payments can even include servicing and maintenance. Also, theres no need to worry about depreciation or disposing of the vehicle at the end of the contract.

Dont forget that if you choose the company car instead of the company car allowance, all your motoring costs (except private fuel) will be taken care of by your employer including insurance, road tax, servicing and repairs. If you choose the company car allowance, you will have to pay for these things yourself.

If you choose a company car allowance and lease a vehicle which you use in the course of your job, youre entitled to claim from your employer a mileage allowance for each business mile travelled. H.M. Revenue & Customs approves certain mileage rates that employees can claim for business travel, and the current rate is 40p per mile. Check the HMRC website for the latest information.

Part way between the company car and a company car allowance is something called Employee Car Ownership. This is where your employer gives you a car allowance, but the company organizes the finance deal and takes care of insurance and running costs. This may also be worth considering if your employer offers such a scheme.

I Have A Restricted License, Can I Still Get A Car Hire

In reality there are many car rental companies that rent to people who are driving on a restricted license. Of course, the limited license should be valid and should not be suspended or revoked, these are things that rental agencies can not overlook. You must be prepared to present the original license, a credit card in your name, so as to be above the minimum age for rental is usually 25 years. You should not groped to submit a photocopy of the license, permit a student, or an expired license at the rental desk vehicles like this almost guarantee that a vehicle will be declined.

Head to the vehicle rental counter and present your valid driver’s license and major credit card understanding that they may or may not run a DMV check to check your driving history. Do not mention this to them just allow them to go through the process. Many companies actually don’t check a driver’s record before renting them a vehicle. And there are different levels of restrictions including an occupational driver’s license which is usually one that applies to those who have had several DUI’s. Each company will handle these issues in their own way.

Read the rental vehicle carefully, especially when they ask what kind of driving that is used to rent the vehicle and also if you have any convictions or moving violations in a given period of time. Do not lie about this contract, answer all questions honestly, because if you do not and you rent the car and something happens then you will be responsible for lying on a contract that makes the entire contract null and void.

Of course, there are no guarantees that you will be able to pull off a rental with a limited license, however, since most companies have strict rules about this kind of vacation you could just go on without a hitch. In both cases it is important to have a backup plan just in case.

It is not advisable to raise this issue at the time of booking, as you may be a red flag to something that could fairly easily be overlooked. Sure, no leasing company to rent to someone with a license that was revoked or suspended so it is not worth trying this type of tenancy. Some things can not easily be overlooked.