Car Allowance In Salary Nz

Forum fuel and economy car allowances by richseay aa member 3 posts 17 june 2013 at 2 41pm i have lost my company car and now am being offered a car allowance they still pay the fuel is this allowance tax free in my hands does anyone know this.

Car allowance in salary nz. You ll have to buy another car for personal use. I am sales rep and currently have a kia sportage 2ltr as a company car with full personal use outside business. There is no specific legal entitlement to allowances. A car allowance is what an employer gives employees for the business use of their personal vehicle.

Napier 4144 new zealand. I had the option of a company car all personal use allowed or a 22 500 car allowance. A better way would be for the employee to submit their actual expenses for reimbursement or submit a mileage claim. A car allowance covers things like fuel wear and tear tires and more.

The car has deemed value of 30 000 per annum that s what it costs the company to provide the benefit including fbt at 64 percent. He receives 200 a month to compensate him for his use of his own car for his door to door sales. Extra qualities or skills an employee brings to. Generally allowance payments are used to recognise.

Should the sales manager drop her base salary to 70 000 to even things out. I took the allowance as i already had my own vehicle. A car allowance is meant to cover expenses like wear and tear on your car fuel and gasoline costs repairs and more. It is up for renewal and the company has given me the option of a replacement of the kia or a vehicle allowance.

But that gets you an unlimited use car so not equivalent to losing the limited. Benefit allowances are regular payments made in addition to an employee s salary or wages and include things like. Food allowances eg payments to subsidise meals at a workplace cafe or canteen. What do you think.

The payment of and level of allowances over and above salary or wages can be agreed to by the employer and employee. If you are paying your employees a motor vehicle allowance as a part of their salary package this is taxed as a part of their wages. Current lease is through fleet lease 3yr 75k. A car allowance is a set amount over a given time.

Seems a grey area and right now i am paying tax on it which diminishes its value somewhat. But the sales manager is provided with company car to fulfil her duties. Clothing allowances eg to buy a suit to wear at work but not a uniform. Noah works for traveling nurses industries.

How much to finance tax insure run and maintain a vehicle for a year. Employee s entitlements to allowances over and above salary or wages. It s meant to cover the costs of using your own car. He uses his.

Josh is a traveling salesperson for tables r us.