We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Tax relief on employee subsidising company car?
Options

FLB_Francaise
Posts: 2 Newbie
in Cutting tax
In my work I get a car allowance of £x but you can get a car for a higher monthly cost if you pay the excess out of your net pay.
On the basis that I'm getting an Electric Car, with a low BIK rate, can I treat these extra payments as allowable expenses on my Self Assessment?
I can't see the difference between a car allowance and actual salary in logical terms, so it would seem strange that one gets relieved from tax and one does not?
On the basis that I'm getting an Electric Car, with a low BIK rate, can I treat these extra payments as allowable expenses on my Self Assessment?
I can't see the difference between a car allowance and actual salary in logical terms, so it would seem strange that one gets relieved from tax and one does not?
0
Comments
-
As an employee, expenses can only be reclaimed if they are wholly, necessarily and exclusively to do your job. I assume the car has personal use as well as business use, in which case it would fail the wholly & exclusively tests.
0
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 351.2K Banking & Borrowing
- 253.2K Reduce Debt & Boost Income
- 453.7K Spending & Discounts
- 244.2K Work, Benefits & Business
- 599.2K Mortgages, Homes & Bills
- 177K Life & Family
- 257.6K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards