Car allowance option withdrawn

[Redtailed78]

Hi,

I was told yesterday after a meeting that my option to take a car allowance instead of a company car was being stopped straight away.

Back story, I accepted a promotion Aug 2014 that stated increase salary and company car or option of car allowance (made available when the lease on current company car ends)

I advised my fleet manager I was taking an allowance around May this year when my company car is returned and asked for a lease end date. I was fobbed off for a while although they gave me the lease end date (14th October 2015). My manager emailed me in September to advise they are changing the leasing company and car choices so I should hold off until the car choices are finalized before making my decision. So on his advice they have temp extended the lease on current car until policy is confirmed.

Then yesterday I was told the car allowance policy has changed and as I do over 12000 busines miles I have to take a company car. Other staff are in receipt of an allowance over that mileage and no company announcment has been made so it appears to only be directed at me.

So i'm wondering where I now stand, any advice would be great, I had test drives booked today with a view to buying so thats now out the window and also a loan arranged.

Thanks

[PAWS]

Re: Car allowance option withdrawn

I am sure one of the clever people will come along soon with the correct advice. I do know that HMRC allowed payments of 40p for the first 10k then 26p after that for people who opted out of the company car scheme but I believe they have severely clamped down and reduced this lately. The old allowances coupled with the tax benefits made it sensible for employees to opt out and did reduce the companies’ overheads but it did have a profound effect on leasing companies and fleet sales of new cars. They are now offering huge incentives to companies to return to the old system and the mileage racked up on lease /fleet cars does affect the hire or lease hire cost. If other employees have opted out before the company changed the rules then this might be the reason they are still getting the allowance for using their own cars but wait and see what the knowledgeable beagles say.

[Redtailed78]

Re: Car allowance option withdrawn

Thanks

I mainly want to know if legally they can remove the option for me with no notice and not remove the allowance for others.

Also the fact my manager advised me to hold off confirming my decision then removed the option with no notice given.

Thanks again