Car allowance or Company Car

[faisall]

Hi Guys
Please advise

I am claiming working tax credits and housing benefits ( i have 2 kids and wife, we live in a 2 bed appartment all UK nationals)

I am working full time. I am recently been notified of a promotion at work with 4k pay raise and a company car (or car allowance)

My Pay rise will automatically affect the amount i get towards my tax credits and housing benefits. but this is fine since i am getting some extra pay from work.
But what would be a better option/ a company car or a car allowance? the car allowance is aprox 480/month
If i get a car allowance? will this also counted towards my Pay and decrease my HB and TC & CTC payments? I understand if i get a compnay car i will still have to pay some tax on it.

I am not sure which option to choose to or who to speak to get the exact figures. i dont want to end up getting a company car and then have difficulties paying the rent

Please advise

Regards

Faz

[theprideofpak]

I think the best thing for you to contact your HR department.
Your car allowance is taxable money and you'll loose your benefits as well. Don't forget to update Benefit office about the pay rise and allowance because in future this may become a big trouble for you.

I don't know why you would have to pay tax on your company car?

Secondly you work out yourself how much effect it can make on your benefits.

I would recommend to go for a pay rise and company car "if" you are being promoted on a higher post.