Considering Tusker Electric Car: Clarification on Mileage Allowance Relief for Personal Diesel Car

knightsmove123

Hi everyone,

I'm considering getting an electric car through the Tusker scheme and have a couple of questions about mileage reimbursement and Mileage Allowance Relief (MAR). Here’s my situation:

1. Tusker Electric Car: I know I would only be able to claim 8p per mile for business travel with this car through my employer.
2. Personal Diesel Car: I also have a personal diesel car that I use for longer business trips.

Questions:

• My employer claims that they can only reimburse me at the lower rate (e.g., 8p per mile) regardless of which car I use, can I claim the difference using MAR (via self assessment?)

Would appreciate any insights or experiences!

Thanks!

 

Phoenix72

Your employer can basically do what they want regarding business mileage. They could pay you zero if they wanted.

You do realise there will be a benefit in kind on the electric car as well? 

JJG

Phoenix72 said:

Your employer can basically do what they want regarding business mileage. They could pay you zero if they wanted.

You do realise there will be a benefit in kind on the electric car as well? 

Benefit in Kind is currently 2%. And will rise by 1% every April until 2028

Phoenix72

JJG said:

Phoenix72 said:

Your employer can basically do what they want regarding business mileage. They could pay you zero if they wanted.

You do realise there will be a benefit in kind on the electric car as well? 

Benefit in Kind is currently 2%. And will rise by 1% every April until 2028

Under current legislation......who knows what a new govt may do. Those promises need to be paid for!

Some don't realise the BIK implications of sal sacrifice lease cars and for some wipes out a large chunk of the monies saved.

penners324

Just get an electric car with good range.

No need to take the diesel car on a work trip 

penners324

You can still claim the tax back between 45p and 8p a mile even on the electric car

Phoenix72

penners324 said:

You can still claim the tax back between 45p and 8p a mile even on the electric car

No you can't. It's treated as a company car.

knightsmove123

thanks all. Yes I'm aware about the BiK and the changes... all being factored into the calculations..!

My partner and I need 2 cars so whilst it would be great to drive the electric car everywhere, there's a chance I will need to drive the diesel and so I need to take this into account (hence the question!).

JJG

knightsmove123 said:

thanks all. Yes I'm aware about the BiK and the changes... all being factored into the calculations..!

My partner and I need 2 cars so whilst it would be great to drive the electric car everywhere, there's a chance I will need to drive the diesel and so I need to take this into account (hence the question!).

I see the question now. The electric car is effectively a company car provided by your employer. That is why they will only pay you 8p. If you choose to not use your company car that is your issue as they will only pay you the mileage for the car they have “provided”.

knightsmove123

JJG said:

knightsmove123 said:

thanks all. Yes I'm aware about the BiK and the changes... all being factored into the calculations..!

My partner and I need 2 cars so whilst it would be great to drive the electric car everywhere, there's a chance I will need to drive the diesel and so I need to take this into account (hence the question!).

I see the question now. The electric car is effectively a company car provided by your employer. That is why they will only pay you 8p. If you choose to not use your company car that is your issue as they will only pay you the mileage for the car they have “provided”.

Thanks JJG. Does the HMRC see it that way too? i.e. I cannot reclaim under the mileage allowance relief because I should be using the company car?