Hi,I am joining a leading consulting company who will pay me £500 as car allowance per month. Now my question is:1) I do not have driving license as yet will I still get this component.2) Where exactly this money needs to be spend and do I need to produce any receipt to get this amount every month.3) Can I use this money to take my driving lessons and Practical test ( I failed 2 times before and each time it costs me over £250 just to give an exam) Kindly provide your views on this matter.RegdsHiya!

Just count it as part of your wage and do what you like with it. Really just a ruse so that when they pay you bonuses they can say "we gave you x multiples of base salary" and it sounds better.

you lucky jammer

Agree with hi - the allowance is generally to enable mobility, not to buy a car. Your employer does not give a hoot what you do with it, it's added to your salary, taxed with your salary and included in your single net pay amount.At that point it's yours to do as you like. I'm currently using mine to part fund the renovation of a house I've just bought so that I don't have to take a loan out.Everyone's a winner!

Hi - You might also want to look into leasing a car. Depending on what area you're in, it might be easier and more efficient to just take cabs and/or trains. But if not, look into a lease. Might save you some $.

I think he ought to concentrate on getting his driving licence first

Two things to beware of:1. If you are in receipt of a car allowance at my firm, the firm will not pay for local area hire car. You are expected to have a car or rent one as/when you need it.2. Those in receipt of a car allowance receive a much lower mileage reimbursement rate than those who are driving their "own" cars. So someone in receipt of a car allowance gets the same reimbursement as a company car driver (14p a mile) while someone not in receipt of the allowance gets the full IR allowance of 40p per mile.Remember that even though the car allowance is paid in the same way as salary, it is not counted towards your pensionable pay.

Both points made by Village Idiot are perfectly valid, but remember that company policy may vary. All companies for which I know car allowance policies allow local car hire and reimburse own car mileage at full IR rate.

'Can I use this money to take my driving lessons and Practical test ( I failed 2 times before and each time it costs me over £250 just to give an exam).' You don't give an exam, you take it.My experience is more similar to VI's, although there are compensations in some firms which would contradict any assumptions that you feel might answer your explicit questions, which in fact are questions that you would probably have been better off directing to somebody in your own firm. That was obviously point 0)