BIK 9k per annum or 9k raise

FANTANA said:
I don’t know if you have an occupational pension scheme at work, but if you do and they match say 5% that also helps push it towards the pay rise. If you need a mortgage the extra 9k will help too.
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I'd expect the OP will be paid a car allowance in lieu, rather than given a salary increase. In that scenario, they wouldn't benefit from an increase in company pension contributions as the allowance isn't base salary. That's how it operates where I work.
 
Buy a boring reliable previously loved diesel car and max out your pension with the salary increase
 
Thanks for all the inputs, the car allowance seems to be an option. After taking the average of the mileage and time away from office for the 3 years prior to covid it would equate to €8800 had I claimed mileage on a personal vehicle . The cost of fuel based on todays fuel rates would be €2500 per annum ,( averaged the mileage over those 3 years ) say then €1000 for tax and insurance. So I'm looking at €5300 per annum to buy and maintain a vehicle.
 
Familyman77 said:
Thanks for all the inputs, the car allowance seems to be an option. After taking the average of the mileage and time away from office for the 3 years prior to covid it would equate to €8800 had I claimed mileage on a personal vehicle . The cost of fuel based on todays fuel rates would be €2500 per annum ,( averaged the mileage over those 3 years ) say then €1000 for tax and insurance. So I'm looking at €5300 per annum to buy and maintain a vehicle.
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The AA used to publish an annual cost of motoring figure - the last one on their site seems to be from 2019. Not all of these may be applicable in your case, but even so there may be a benefit in reviewing all the different types of expenses to make sure you've considered them before making a decision.

https://www.theaa.ie/motoring-advice/cost-of-motoring/
 
nest egg said:
The AA used to publish an annual cost of motoring figure - the last one on their site seems to be from 2019. Not all of these may be applicable in your case, but even so there may be a benefit in reviewing all the different types of expenses to make sure you've considered them before making a decision.

https://www.theaa.ie/motoring-advice/cost-of-motoring/
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Thanks for that , I always had thought it was around €10000 per year to run a car and its good to see the breakdown.
 
Familyman77 said:
Thanks for all the inputs, the car allowance seems to be an option. After taking the average of the mileage and time away from office for the 3 years prior to covid it would equate to €8800 had I claimed mileage on a personal vehicle . The cost of fuel based on todays fuel rates would be €2500 per annum ,( averaged the mileage over those 3 years ) say then €1000 for tax and insurance. So I'm looking at €5300 per annum to buy and maintain a vehicle.
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Familyman77 said:
I would have a fuel card as opposed mileage. Mileage would be around 20-25km per year
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I'm a little confused, why are you factoring in the cost of fuel, are you not been offered a car allowance of €9k plus fuel card??
 
Cervelo said:
I'm a little confused, why are you factoring in the cost of fuel, are you not been offered a car allowance of €9k plus fuel card??
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Sorry i wasnt clear enough in that post. A third option was provided yesterday which is their preferred option and I supply my own fuel and claim car allowance mileage
 
Familyman77 said:
Sorry i wasnt clear enough in that post. A third option was provided yesterday which is their preferred option and I supply my own fuel and claim car allowance mileage
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So you get a 9k cash allowance, and claim mileage? Or just claim mileage?
 
So your options are
An all expenses paid company car which will add a notional pay of €9k to your salary
A €9k car allowance plus a fuel card
Claim mileage which should give you an additional income of €8800
 
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Cervelo said:
So your options are
An all expenses paid company car which will add a notional pay of €9k to your salary
A €9k car allowance plus a fuel card
Claim mileage which should give you an additional income of €8800
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That's the 3 yes. 1st option pai BIK of 9k, The 2nd option 9k allowance is taxable, 3rd option 8800 is not taxed
 
If your not concerned about the type of car or it's age then the 3rd option would be the one I'd choose
 
Cervelo said:
If your not concerned about the type of car or it's age then the 3rd option would be the one I'd choose
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Thanks for your input Cervalo, we were thinking to upgrade my wife's car in the next 2 years anyway so I'm thinking this is the best option for us aswell and it just brings our plans forward
 
Of the 3 options in my opinion it is the best for you once you can make it work with your yearly mileage
It allows you to choose what type of car and how much you want to spend on that car
Not only will your net pay go up but there is a real chance that you can cover your motoring expenses and still have money left over

The next best is the €45k company car because for approximately €4.5k a year everything is paid for and you don't have to worry about fuel prices servicing, repairs or even increased insurance premiums should the unthinkable happen

IMO The €9k car allowance even with the fuel card is not enough to compensate you for foregoing the company car
Others have said above that it's not just the car allowance, there's also the tax you save from not paying the BIK which can be added
But I view that saved tax as part of your net pay and shouldn't be used in the calculations for a car allowance figure by the company
 
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