Does anybody know if a car allowance is deemed as income or an expence from an IVA perspective. I have been offered a car allowance as part of a promotion. The new job requires a lot of travelling which means more cost in maintenence. Im just worried that if they take 50% of this I will not be able to run my car properley and in turn carry out my new role.
Your car allowance is provided to enable you to provide a car of a suitable standard set down by your employers, so it needs to be used for that first and foremost.
Have a chat with your IP to discuss the implications of receiving this allowance - but my gut feeling is that it will be absorbed in additional costs - and if not ought to be set aside to meet the cost of a replacement vehicle.
Hi
I would think that you would show it as income and then offset it as extra costs, associated with running your car, on the your expenditure list.
Regards
