What is a company car allowance?
Make payments to lease or buy a new vehicle. Apply their allowance retroactively to offset the upfront cost of buying a new car in full. The company car allowance gives employees a greater level of freedom and flexibility to use other finance options, rather than sticking to a company car. What is a reasonable car allowance in the UK?
Can my employer pay for my car allowance if I lease?
Regardless of the car you drive - as long as it’s not a company car - your employer can choose to pay a car allowance as a company benefit. It does not matter whether you buy, already own or lease the vehicle, the allowance is the same.
Do I have to spend the full allowance on a vehicle?
You are not required to spend the full allowance on a vehicle. If you drive your private car for business, you are of course responsible for any maintenance, repairs, insurance, and MOTs of the vehicle.