Forum United Kingdom

[Eleuterio]

Hi all
I am being offered a job in UK (Reading area) and the company is offering base salary + car allowance.
Car allowance meaning some more money (i.e. I cannot take a company car).
Now my question is simple: why bothering to distinguish the base salary from the car allowance and not just offering a total amount?
My doubt is that base salary and car allowance are taxed differently, but I could not find anything to corroborate such idea.

Any clue?

thanks to anyone who could answer

[EasyExpat]

It is actually common in big companies. The car allowance line allows them to separate from what is the normal salary in the contract. In some companies, employees have the choice of either the company car scheme (they get a company car with a leashold and they pay only part of the leashold as the company is paying the rest directly), or the car allowance (then they can buy whatever car they want and they get the money that the company will invest in the leashold anyway if you chose the first option).

Both are benefits that are added to your salary and taxed the same way for you.