Treatment of Guaranteed Expenses by lenders (and by Revenue)

[Dan Murray]

Some jobs pay a car allowance without any obligation to actually have a car....

That is not the point at dispute, Gordon! If you receive a car allowance in the manner you have described, it is subject to tax!

 

[jim]

Emma,

The simple response to your OP is as follows:

The payment you receive is net so tax has been deducted by your employer. The gross amount is ...whatever (someone else can do the Math) so in the same way that you report to your Lender your gross salary, you should report to them the gross amount of this benefit you receive. They will want this evidenced in the form of a salary cert, which should include benefits such as this, from your employer.

One doesn't need to actually own a car if receiving "car allowance" payment and its a taxable benefit given by many employers.

Thanks,
Jim

 

[Gordon Gekko]

That is not the point at dispute, Gordon! If you receive a car allowance in the manner you have described, it is subject to tax!

I'm aware of that.

If it's not in dispute, why did you feel the need to make the point that there's a car allowance but no car?

The point is that the €300 may or may not be net of tax.

The OP needs to check.

 

[Setanta12]

Hi Jim. I think the issue here is - there is no employee tax deducted. It is simply added to the take-home nett amount. (I DO get how strange this is. I've seen it in a large US MNC. The lender is happy to accept it once they're assured it is permanent and not discretionary)

 

[Emma36]

1. You receive €15,600 p.a. into your bank account annually, without paying tax on it; and
2. You believe that this is a car allowance but that you don't have a car.

I am unable to reconcile both points!? There's something not quite adding up here....

What's to reconcile?