I have been furloughed since the first week of lock down. I am being paid the 80% by the JRS with no make up by the company. That is all I receive.
On my pay slips it shows my basic salary and a seperate car allowance.
Although I am not using the car for work I still have to tax, insure, maintain and pay for the depreciation.
Bottom line is should I be receiving any car allowance?
Car allowance is treated as income. Although usually itemised seperately it will be treated the same. You would receive 80% of this. Trouble is usually if you get a car allowance you salary is above £30k so will hit the same cap. If you were on say £25k salary with a £5k car allowance you would get 80% of £30k I believe.Originally Posted by Chabsy
Furlough is 80% of base salary only.
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That’s my understanding also, the allowance is taxed The same as income but separate to it, that’s why it’s listed separately on your payslip.
Cheers..
Jase
Yes it's a real pain for people who are commission, or base + payment per trip away etc.
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And what about people who like me need a large 4x4 company car for work and currently paying about £750/month in BIK even though the car hasn’t moved ?
You can’t win either way,you never will.
Are you actually working ?
What is it you do ? Off Road driving instruction and tuition ??
Or do you just want it all ways ?
And this last statement really makes me howl. One possible alternative to "winning" as you put it, is to be lying stiff in a box somewhere having caught a killer virus.
I suppose you're right, nobody ever wins...they just moan about losing out.
Spare a little thought for your other countrymen who just maybe, just maybe, worse off than yourself.
As of today there are approximately 336,000 recorded deaths due to Covid-19, which is a horrible fact. Every single year 3,000,000 -3,500,000 children under the age of 5 die due to undernutrition, which to me is even more horrible.
It’s a terrible situation we’re in, but far worse situations already exist, albeit with less global publicity.
This forum existed before Covid-19, with tens of thousands of preventable deaths every single day. I think it’s a bit harsh to throw the current situation at someone by way of a reprimand for worrying about their income during this crisis.
So, you're effectively comparing a whole lotta whole lotta deaths to somebody complaining about where his money is to come from and calling it a no win situation ?
I'm guessing we see things differently then.
Sorry if I’m wrong, but your ‘spare a though’ comment appeared to be specifically related to the current Covid-19 situation.
My "spare a thought" comment was related to others, lots of others, in a similar boat and not the Covid situation.
I’ve mentioned this before in the self employed thread but the salary level for maximum benefit (£2,500) is £37.5k, not £30k.
At £30 salary (£2,500 pm), you’d receive 80% ie £2000.
My mistake. You must have been talking about an entirely different killer virus then.
The Ethiopians are currently planning a musical event to help you guys not lose out due to having your company merc/bmw/jag costing you through BIK each month.
😂
Yes I am currently working the best I can as an NHS certified “Key Worker” supplier covering the whole of the UK 24/7 on call currently going into Covid units when urgent but fortunately at the moment spending more time at home than normal with the rest of my technical staff,none of whom are furloughed,clever dick.
Thanks to me and the niche products I market normally just for haemodialysis patients fewer people are dying in ITU’s but you weren’t to know that before you made your snide comments.
You've never seen my Dick ?
Clearly. Begs the question why you need a 4x4 for that. Wouldn't a van be more appropriate ?
Furthermore, how come you've not put a little to one side to get you through this bizarre climate we're in ?
If it's any consolation, I clap on a Thursday at 8pm in support of what the NHS are doing but the likelihood of you hearing me is very remote.
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If you're working, you'll be getting paid then ?
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Keep it up and Bremont could oblige you with a Limited Edition timepiece.
Powerfully built sales & marketing director!
If that’s a question as to my identity then yes 👍
You’ve got a Skoda Labia haven’t you and never driven a quality large 4x4.
Did I even mention I’m skint,don’t worry about me on that score.
Oh,and I don’t get paid I share profits just to clear that one up.
It may be bizarre to you but those of us of a certain age have been through similar times on several occasions in our business lives so have learned to put something away for hard times ,that’s how we’ve survived when competitors went under.
My original post was purely to highlight that if you do need a car for business in my opinion having tried all different way to finance it they all boil down to about the same costs in the end so my preferred option is company car,on short term contract hire and pay the BIK P11D,I wasn’t moaning or gloating just giving my opinion.
Last edited by SeePee; 21st May 2020 at 11:50. Reason: typos corrected
Hi Everyone,
I'm attaching a link to the Government's guidance on how to calculate furlough pay which might clear up some questions -> https://www.gov.uk/guidance/work-out...scheme#include
The way I'm reading is that for furlough purposes, you need to add salary and "non-discretionary" payments which are contractually enforceable. So if your employment contract states that you get paid £6,000 per year as a car allowance (which would be non-discretionary as it's in your employment contract) on top of your salary of £30,000 per year, then you add this to the basic salary when calculating the pay for furlough.
In this example, annual pay for furlough would be £30k salary + £6k car allowance = £36k per year or £3,000 per month. You can claim 80% of this £3,000 per month = £2,400 per month which is just below the £2,500 monthly limit on the scheme.
The Government guidance above gives examples of what is "non-discretionary". This link from CIPD is also useful -> https://www.cipd.co.uk/news-views/co.../faqs/furlough
Potentially commission payments could be included in the furlough pay calculation, but only if they are "non-discretionary". Information is included in the CIPD link above.
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