Cash or Car?   

Before We Start ...

If you're thinking of providing a cash allowance instead of a company car then our PaySwaptm cash or car calculator will work out which one is right for your business.

If this is the first time you've used PaySwaptm then take a few seconds to read the guide below - it will help you get to the right answer - and check out our guide to providing cash allowances.

Even if you're a veteran of PaySwaptm then it may still help you to read it again anyway.

Think of it as our pre-flight safety briefing, but without the dummy oxygen mask and Day-GloTM life-jacket.

    Getting Started   

Getting Started

Your Business Profile

To begin you'll need to set up some information about your business, such corporation tax rate, National Insurance and VAT recovery.

We'll also need details about the rate of return achieved on capital invested in the business. This is to calculate the effect on your business of cash-flow changes caused by providing a cash allowance instead of company cars.

The rate of return on capital is used in cash-flow modelling, but don't worry if you don't yet know your return on capital - we can work out the minimum rate you would need to make a cash allowance more efficient than company cars.

Similarly, if there's any other information you're not sure about then just use the example data we provide - you can always go back and change the details at any time.

We won't keep any business data you provide. Once you leave our site and close the browser window the data will be erased from our servers, but remember that your web browser may keep browsing data for a period of time and this is beyond our control.

If you leave your computer, tablet or phone for a while when using PaySwaptm we'll wipe the data as well to help prevent someone else from seeing it (but please don't rely on that - just close your browser window and come back to us later).

Driver Profile

Once the business profile is complete you'll need to provide information about the driver being offered a cash allowance, such as income tax and National Insurance rates and annual business mileage, plus the cash allowance you will offer.

If there's any information you're not sure about then just use the example data we provide so you can get started.

Company Car

Next we'll ask you about the company car the driver would normally have - to begin you should choose the driver's standard entitlement in your company car policy.

This bit is important - it will provide a benchmark for calculating whether a cash allowance will save money for your business compared to a company car.

This is because the net value of the cash allowance to the driver will depend on how much tax the driver saves compared to having a company car. If you don't know how much tax the driver is saving, it's harder to calculate the cash allowance required to leave the driver no worse off from a cash allowance than (s)he would be in a company car.

Once you've set the benchmark you can always go back to it later and see the cost and tax impact on your business and the driver if the cash allowance is spent on a different car.


Once the car is selected we'll ask you about finance for your company cars. You can select the replacement period for the car (up to 5 years) and the annual/total mileage and we'll match the finance to your selections.

This process is then repeated calculating the driver's monthly finance repayments too.

If your business will administer or manage the arrangements for the car or finance (or introduce the driver to the suppliers for either of them) then it's important to select a Personal Contract Purchase type of finance package.

This is for complex tax reasons you can read about here and it's why we make Personal Contract Purchase the default setting for PaySwaptm.

If the driver will simply get a cash allowance and make all his/her own arrangements for the car and finance then the driver may be able to use a Personal Contract Hire arrangement. There is an option to select this type of lease finance when choosing the driver's finance package.

You should always examine carefully the degree of involvement of your business in the car supply/finance arrangements and consult your professional advisers to make sure there are no adverse tax implications from the driver's choice of finance.

You're Ready To Go!

Once you've completed the business/driver profiles, car and finance selections you're ready to see the analysis results.

We'll show you:
  • the cost and tax impact on your business of providing a cash allowance compared to an equivalent company car;
  • if you have already decided the cash allowance, whether or not the allowance will be enough to allow the driver to get the same car as (s)he would have in a company car plan;
  • if you don't know how much cash to provide, we'll show the monthly allowance the driver will need to leave him/her no better or worse off than having a company car; and
  • if the driver can't get the same car with a cash allowance, the cars the driver could afford.

So let's get started on your PaySwaptm analysis - just click on the link below:

Business Profile

Contact Us

Whether you're a personal buyer, fleet operator or company car driver we have the most advanced tools you could ever need to help you choose your next new car or van.

From vehicle technical data to advice on buying or leasing, it's all here waiting for you.

So dive right in, or why not get in touch?

You never know what else we might know ....

   0333 444 0400

(+44 1792 224319 from outside the UK)


0330 444 0400
(+44 1792 224319 outside UK)