We’ve seen monthly car allowances that range from £150 per month all the way up to £1,000 per month. The amount offered to you will be detailed in your car allowance offer as part of your benefit package, and you should be able to request a break-down of the calculation for your reference.
How is my car allowance calculated?
Your car allowance is simply added to your existing income (after deduction of Personal Allowance) and your tax band is applied depending on whether you belong to the basic, higher or additional tax rate band.
Is a car allowance taxable?
Allowances can be paid monthly, quarterly, or yearly, and the car allowance amount will typically depend on the amount you’re expected to drive, the type of car, and current gas prices. If your organization provides a car allowance, it may be unclear if the allowance is part of your taxable income or if the tax is the company’s responsibility.
What is the automobile benefits online calculator?
The Automobile Benefits Online Calculator allows you to calculate the estimated automobile benefit for employees (including shareholders) based on the information you provide. The Canada Revenue Agency (CRA) does not keep any of the data you provide to complete your calculation.