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Opted out of company car but no allowance?

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  • Opted out of company car but no allowance?

    I hope somebody can help with this. I was employed by my company on £30K plus company car (passat 2L or equivalent). Upon starting at the company they informed me that it would be better to opt out, it would save me money etc, etc. Unfortunately I did not fully understand how this works and assumed they have my best interests in mind. I agreed to opt out.
    However they never gave me a cash allowance.
    I can find information all over the internet about company car vs car allowance, but nothing about if a company doesn't pay an allowance.
    Have I in effect had a pay decrease? Is there anything law wise to say they have to give me an allowance?
    Tags: None

  • #2
    Re: Opted out of company car but no allowance?

    If they didn't tell you that there would be an allowance as an alternative, then there isn't an allowance as an alternative. The law doesn't say they had to give you an alternative.

    Comment


    • #3
      Re: Opted out of company car but no allowance?

      Originally posted by Eloise01 View Post
      If they didn't tell you that there would be an allowance as an alternative, then there isn't an allowance as an alternative. The law doesn't say they had to give you an alternative.
      But if my letter of employment specifically mentions a company car will be provided, isn't it just ethical to offer an allowance? Surely my salary is now less? If I were to look for another job, how do I explain...

      Comment


      • #4
        Re: Opted out of company car but no allowance?

        Ethics and law are two different things. You were offered a company car. You opted not to take it. You should have asked what the alternative was. Why would you need to expain anything to another employer?

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        • #5
          Re: Opted out of company car but no allowance?

          Im thinking this is like banging your head against a brick wall if the contract does not offer a cash alternative thats the end of it sorry to say

          Comment


          • #6
            Re: Opted out of company car but no allowance?

            Originally posted by Eloise01 View Post
            Ethics and law are two different things. You were offered a company car. You opted not to take it. You should have asked what the alternative was. Why would you need to expain anything to another employer?
            Not sure if I understand your comment about explaining to another employer? If asked at an interview what my package is, being an honest and truthful person I am going to have to give my salary and that is it.
            As explained I was naive at the time and did not have the first idea about opting out. As my employer had explained that by doing this I would save money on tax etc, and showed me many different tables and numbers. I could not get my head around what they were showing me (we aren't all rocket scientists) and did not know that there was an alternative...

            Comment


            • #7
              Re: Opted out of company car but no allowance?

              Disappointing, but more or less what I expected. Thanks

              Comment


              • #8
                Re: Opted out of company car but no allowance?

                You could point out that your salary package is salary plus car but you opted out because of tax implicatications. No other choce really.

                Well, look on the bright side. Two valuable lessons learned. The employer is only ever looking after your interests if it is in their interest to do so. And always ask what the other options are.

                Comment

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