Skip to main content

"Very professional service. Cared about me personally and made sure the job was right for me. Didn’t push me to take it, talked things through with me and helped me make the correct decision"

Josh Phillips

What is a Typical Car Allowance in 2024

As the cost of living continues to rise, so does the cost of owning and maintaining a car.  This can be a significant expense for many people.  But what is a typical car allowance in 2024?

What Should a Car Allowance Cover

A car allowance is a payment made by an employer to an employee to cover the costs of using their vehicle for work-related purposes. 

Car allowances should typically cover the expenses associated with maintaining and operating a vehicle, such as fuel, insurance, and necessary repairs.  It should also cover a reasonable amount to compensate the employee for the 'wear and tear' on their vehicle resulting from business travel.

Should the Car Allowance be Standard for all Employees?

We would say that it depends.  The amount of a 'reasonable' car allowance is influenced by several factors, including the employee's location, job role, and company policies.

The first is the location of the employee.  If you have a field salesperson in Scotland and expect them to come to the office in the Midlands a couple of times per month, the 'wear and tear' amount should be considerably higher.

Secondly, in remote areas, the cost of operating a vehicle may be higher due to factors such as higher fuel prices, worse road conditions and car maintenance costs.

Thirdly, for field sales, you may want your employees to create a good impression of your company, so you may need to pay a higher allowance in this case so that they can lease or buy a better 'grade' car.

Lastly, what is your car allowance policy – check with HR.  Remember that when an employee is driving their car on behalf of your business, it becomes your responsibility.  ).  By scrimping on the car allowance, your employee may not keep their vehicle as maintained as it should be.  If they have an accident, it will potentially become your problem (see note on the Corporate Manslaughter and Corporate Homicide Act 2007).

What is a Typical Car Allowance in 2024

The range is huge, and we see firms paying allowances from £300 to £700 per calendar month to field-based sales staff.

As a business owner/line manager, based on your company car policy, you can determine the car allowance for an employee and include it in their contract.

Taking into account the average of projects worked by Aaron Wallis, we recommend that the benchmark figures should be:

  • £8,400 to £13,200 for Sales Directors, Commercial Directors and Business Unit Directors of larger companies;
  • £6,400 to £8,400 for Senior Sales Managers and Sales Directors of SMEs;
  • £4,800 to £6,400 for Sales Managers;
  • £4,200 to £4,800 for Business Development Managers;
  • £3,600 to £4,200 for Field Sales Representatives/Area Sales

NB The car allowance is typically paid as a salary, so tax and national insurance will apply at the usual rates.  While making tax arrangements for both parties easier than for a company car, you must consider this when setting the car allowance rate. In addition, we suggest you provide a mileage allowance to employees in addition to the car allowance, which is reported as an expense.

We recommend a minimum of £300 per calendar month if the maximum mileage allowance is offered (currently, in 2024, this is 45p per mile for the first 10,000 miles and 25p after that). 

We recommend a minimum of £350 PCM if a lower mileage allowance is offered.  Remember, after tax and NI, that equates more to about £270, so the employee would be able to lease a car at, say £200 PCM allowing £70PCM to cover insurance and maintenance.

In the current ‘cost of living crisis’, if an employee has concerns about the adequacy of their car allowance, they should discuss these concerns with their employer to try to reach a satisfactory arrangement.

What is a Typical Car Allowance for Sales Directors in 2024

Directors, senior executives or board members expect some level of prestige when meeting with clients and, therefore, are usually paid a higher car allowance.

Again, we see a wide range offered from £600 to £1,100 PCM, with the typical amount being around £700 PCM.  Allowing for tax and NI, this amount should cover the lease cost of a mid to top-of-the-range German marque or similar.

Date published: 26th Feb 2024

Headshot of George Humpries in a suit, Aaron Wallis Sales Recruitment

About the author

George Humphries

George is an experienced recruitment consultant at Aaron Wallis, specialising in recruiting top sales staff for technical and commercial positions. With a background in both FCMG and technical sales, George has first-hand experience in the sales industry, giving him great insight into identifying top performers. 

If you're looking to take the next step in your career, George is a valuable source of professional advice, working daily with some of the brightest and biggest businesses throughout the UK. 

Please call us to discuss your next move

Milton Keynes

Birmingham

Bristol

Our employers say...

Understood the type of person we were looking for and good follow ups - not too frequent.

Managing Director, bigHead Bonding Fasteners Ltd

Giles Phillips is a rare find in the minefield of sales recruitment; an honest and thoughtful recruiter who considers the needs of both the client AND the candidate to create perfect role matches. I look forward to working with him again in the future.

Marketing Director, City of London Police

I found Aaron Wallis to be very professional and efficient, taking time to understand the role and the type of candidate we were looking for. The candidates they put forward met our criteria and were of a high standard. The service they provided was exemplary and I would have no hesitation in recommending them, and will certainly consider using them again in the future.

HR Assistant, Fischer Connectors Ltd

Generally good standard of candidates. Especially liked the personality profile. Overall good value for money and will certainly use you again.

Managing Director, Medicash

Since joining DSGi, Rob has been a supplier of permanent staff and has performed to an extremely high standard, successfully filling 98% of roles he has worked on. If anyone is looking for a good sales and marketing based consultancy with an informal yet professional approach, I would recommend Rob.

Senior Recruitment Consultant, DSG International

Sophie did a great job at understanding our business and our needs, she is extremely professional and we hugely benefitted from her experience and expertise.

HR Manager, The Data Privacy Group Ltd

As always we were extremely impressed with Rob's understanding of the role and our specific needs.

Managing Director, Speck & Burke

George is a joy to work with, and I'd recommend him to anyone seeking that unicorn hire - he found me mine, and I'm delighted!

Director, Education Support

I really liked the YouTube presentations which made the service seem both simple and accessible. The company came to see me, and my management team, at short notice to present their service and I liked the support and advice that I received about maximising the results from the applicant.

Managing Director, Leisuresec plc

Rob’s knowledge of the recruitment industry and his thoughts and how to make it better for his clients have always been eye opening. I would recommend Rob to anybody who is looking for a professional, knowledgeable and flexible recruitment specialist.

CEO, Friday Ad Online Services

Rob is a true recruitment professional that goes the extra mile that I have never experienced from any other recruitment agency before. If you need sales people call Rob or someone in his team, as they really are experts in sales recruitment.

Sales Director, Inside Business

Thanks for all your help during the recruitment process. I have been extremely impressed with Aaron Wallis especially when compared to other agencies we have dealt with. I really felt you grasped the type of person we required and found strong candidates.

UK Sales Manager, Nexcom

George came recommended by a colleague and has been a pleasure to work with. He was great at updating us on his progress and ensured a great experience for both client and candidate.

HR Manager, Annapurna Recruitment Ltd

George is a rare find in the world of recruitment - communicative without being pushy or over-bearing. He listens and understands what the customer needs as gets to know the business to ensure he provides fully competent candidates who fit.

HR Manager, Big Dug

I have used Aaron Wallis to fill a number of our Sales Development Manager roles and I have found them to provide a very professional service. I will use their services again in future recruitment campaigns.

HR Business Partner, Greene King

I can't fault Sam or AW! Sam was a pleasure to work with and provided great support from the start. Sam always provided me with timely updates when required and provided outstanding candidates!

Director, Waste Managed Ltd

Giles is highly professional and was a pleasure to work with. He achieves excellent results through his personable skills and tenacity. I have no hesitation in recommending Giles to anyone who considers employing his services.

Commercial Director, G4S Government & Outsourcing Solutions

Really good service. Just the right amount of contact and easy to deal with.

HR Manager, Zircon Software Ltd

Aaron Wallis has continuously provided us with suitable candidates that have been proactively sourced. Having used countless recruitment companies, Aaron Wallis are the only company that I can count on to deliver.

Managing Director, JARK Healthcare Recruitment

I could not suggest anything I would like you to do better. The service you provided materially exceeded my expectations. I would especially like to commend Simon Bonner; he is easily the best recruitment consultant I have ever dealt with. I particularly valued his advice and guidance throughout the recruitment process. 

UK Sales Manager, BTS Holdings Limited 

Very professional service and will certainly be in contact for future recruitment.

Director, Blakedown Sport & Play Ltd

We appointed Aaron Wallis in February and the successful candidate, out of the six which Aaron Wallis introduced, was able to join Alphametrics before the end of April. The whole process took less than three months. I would recommend Aaron Wallis' services to others without hesitation.

Chief Financial Officer, Alphametrics

In an industry where people over promise and under deliver, Rob and his teams have consistently provided a high-quality service. It is great to deal with someone that has an excellent understanding of UK industry, and a passion for sales.

Sales Manager, TR Fasteners

I have always found Rob to be very knowledgeable about our industry sector, and it is refreshing to see after all of these years that Rob continues to quickly and accurately understand my requirements.

HR and General Manager, THK

We were impressed not only by the quality of candidates you found for us but also the level of information, preparation and qualification you put into the process. You continually kept us informed of each person’s feelings about the process, which is very important but often overlooked. I am looking forward to working with your company again in the future.

Commercial Director, Incentive Facilities Management

Thank you for your dedicated help during the recruitment process - we came to you after unsuccessfully searching elsewhere, and hired, not one, but two! Quick response times, and a really personal approach, without being pushy.

Managing Director, Accora Ltd

I just wanted to thank you for your help with our recruitment process which went very smoothly and has – we hope – found us just the person for the job!

Managing Director, Citrefine International Ltd

Our candidates say...

Friendly, proactive, communicative. Overall a really positive experience.

R. Houston, Candidate

I have to say using Aaron Wallis Recruitment has been nothing but an absolute pleasure. I've used many agencies over the years as the client and the candidate and its not always been a pleasurable experience!

L. Knowles, Candidate

The service provided by Aaron Wallis has been just great. I was constantly informed about what was going on with the process interview and the agent has always been supportive and kind to me.

L. Colagrossi, Candidate

Very polite and friendly and was very helpful finding me my next new role.

K. Craggs, Candidate

Wanted to say a huge thank you to Simon Bonner who has just helped me secure my new role. He was one of the most professional recruiters I have ever worked with he was supportive really quick at replying and really put me at ease.

J. Marcinkiewicz, Candidate

Managed to get me placed within a week! Really friendly and easy to deal with. Always available for a call and my biggest challenge was I was in work at the time I was looking for my next opportunity (which is stressful) but Sam made that easy.

P. Fitzsimons, Candidate

The most professional recruitment agency I've ever worked with. Robert Scott was extremely proactive and send me a detailed briefing before each interview, ensuring I was well prepared.

D. Bermant, Candidate

Simon was knowledgeable on his clients history, background and what their requirements were and he worked around time zones, holidays and a pandemic to get the right result.

J. Tooze, Candidate

Fantastic customer service, communication was brilliant, happy polite people to talk to, made everything a lot easier and smoother. Thank you for all your help getting me back in the work force, Keep up the good work :-)

K. Everitt, Candidate

Aaron Wallis Sales Recruitment are a very friendly and professional recruitment organisation who listen to your needs, work with you and act on your behalf which sets them apart from many of their competitors who in my experience are willing to throw anything at you. We discussed my history, my preferences and my wishes - one opportunity was introduced. It was perfect. I start at the end of June.

R. Buckley, Candidate

George is a fantastic recruitment agent and provides a great service. It was a pleasure I thoroughly recommend George to anyone.

C. Beaugie, Candidate

Sophie helped me secure a new role I have been searching for. She took her time to explain clear and concisely all I needed to succeed at the interview stage. Thanks again Sophie!

O. Oladejo, Candidate

Wanted to say a huge thank you to Simon Bonner who has just helped me secure my new role. He was one of the most professional recruiters I have ever worked with.

J. Marcinkiewicz, Candidate

Very good advice and support was given during the course of the interviewing process. Potential job seekers would be well advised to use this company whilst looking for their new career.

R. Speakman, Candidate

I had the absolute pleasure of working with George Humphries on finding a placement best suitable for me.

A. Van Der Mescht, Candidate

Aaron Wallis (and in particular Rob Scott) have been fantastic throughout the recruitment process, and even a few months down the line, still continues to care. Rob clearly cares about each individual and has a wealth of knowledge and expertise, which shows in the work he does. Each candidate is not just a number, and the support received from Aaron Wallis has helped me get a career which I truly enjoy.

M. White, Candidate 

Darren at Aaron Wallis was really encouraging and helpful. He was very responsive and regularly made phone calls to explain the job opportunities available, and guided me through the application process.

A. Brown, Candidate

George Humphries was a complete professional at every point, from our first phone conversation to his “good luck tomorrow” text on Sunday before I started in my new role.

E. Fry, Candidate

I would highly recommend Aaron Wallis Recruitment, Darren was extremely helpful and provided me with plenty of advice and support throughout the whole process.

D. Bretherton, Candidate

Professional and responsive from start to finish. I would highly recommend. Special thanks to Sophie J for her help and support throughout.

N. Leney, Candidate

The detail put into the preparation for interviews and the detail of the job description was first class. Rob and Simon in particular are amongst the best I've ever dealt with.

K. Peacock, Candidate

Good swift process with Aaron Wallis, informative regarding the role and the process was moved at a good pace with healthy interaction. Would recommend them to anyone pursuing a change.

S. Bartlett, Candidate

Fantastic service, helped me find my ideal job quickly and smoothly. Would highly recommend them.

C. Caine, Candidate

I had a very good experience with Aaron Wallis. The company itself is offering great content for all things related to the hiring process. I definitely recommend.

J. Ostermeier, Candidate

I would highly recommend thank you to Darren for helping me secure my new job role! Excellent service all round!

G. Thompson, Candidate

Perfect from start to finish. Simon deserves a shout out. Best recruiter there is. If you need a job, this guy will get you one. He's like the super man of recruiters. Top man, can't recommend him enough.

M. Crisp, Candidate

The Recruitment agent I used, Simon, was extremely helpful and really went the extra mile to ensure all of my questions were answered, and that I felt as comfortable and prepared as possible. Very professional company and would definitely recommend to others. Thank you Aaron Wallis!

A. Callaby, Candidate

I can honestly say that the time and expertise you gave me was way beyond any other recruitment consultant I dealt with. You are a rarity in your industry.

S. Akers, Candidate

Rob was really helpful when I was putting together a presentation for the second stage interview. Overall their communication was great and kept me updated of any progress

J. McGrattan, Candidate

The staff at Aaron Wallis were fantastic. Throughout the process, they maintained excellent communication and I always knew where I stood.

M. Owusu, Candidate

Excellent service, very professional and friendly, would and have, recommended Aaron Wallis.

E. Heley, Candidate

I have to say coming across and having dealings with Aaron Wallis proved to be very successful. Being highly experienced did not seem to count for much during my job search bit a conversation with Robert Scott gave me a real confidence boost and enabled to get a position at the age of 63. Great service!!!

D. Burgess, Candidate

For anyone looking for work, I can't recommend Aaron Wallis highly enough.

C. Rockliffe, Candidate

Less than two weeks after joining Aaron Wallis I was offered my new job. I got a £10,000 rise in my basic salary, car allowance, a laptop and many other perks, which will help to further my career. I definitely would not have found my dream job without the help of Aaron Wallis.

C. Hoy, Candidate

Sam was by far the most professional and helpful of any individual I've ever dealt with through a recruitment agency. He was supportive and thorough throughout the process. He definitely goes the extra mile for you. A pleasure to deal with. I would highly recommend him. An asset to Aaron Wallis

M. Wyer, Candidate

Aaron Wallis is an outstanding recruitment agency specialising in high calibre sales positions. I was working directly with Darren Dewrance who went above and beyond my expectations in sourcing me my perfect role. I was kept in regular communication with Darren and he worked extremely hard to secure my dream job. Highly recommended and Thanks Darren for all your expertise and hard work.

R. Sealy, Candidate

When talking with Simon you felt relaxed cared to help you find a position that suited your needs

D. Pinder, Candidate

A great recruitment company to work with. Excellent experience with Aaron Wallis through the entire recruitment process. The team was really professional and extremely helpful. Darren was a pleasure to work with. He was friendly, supportive and gave me great advice. Thank you very much!

A. Bauchet, Candidate

George above and beyond to make sure I had everything I need to secure my new role. Outstanding Professional.

A. Kirkland, Candidate

Sophie contacted me about a role explained the details clearly and made sure I was ready for the interview. She kept in touch every step of the way till I started the job. Thank you Sophie for a great experience.

S. Powell, Candidate

Sophie has been fantastic and always so attentive, highly recommend.

T. Ashbourne, Candidate

I had a great experience. Helped me every step of the way to get my new job. Sophie was very polite, kind and helpful!

J. Parnham, Candidate

Excellent experience. Knowledgeable staff and really went the extra mile. Found my ideal position and I couldn't be happier. Special shout out to Sam and George: who made the process smooth and easy for me. Highly recommend.

K. Pearce, Candidate