How are companies who have implemented electric car schemes (with Tusker and the like) managing the mileage payments for those using the car for work purposes?
We have employees who were previously getting 20p per mile to drive in their own car, now only eligible for 9p per mile because they are now technically in receipt of a company car (even though they are paying for this benefit vis SS).
I'm thinking of paying a retrospective lump sum "allowance" to cover the difference between the 9p and 20p for the mileage completed each year. It will be fully taxable but at least goes some way towards rectifying the discrepancy.
How are other companies managing this?
Hi Zoe. It's a tricky one but I think most employers will just utilise the AER at 9p even for any salary sacrifice scheme users travelling on business. Yes the employees are still paying for the vehicle themselves but the payment includes full maintenance, servicing and insurance which means, with the tax and N.I. savings, they will be paying a lot less than an equivalent personal lease. We pay the AER but also top up with an extra 2p a mile, grossed up through the Payroll, to reflect the fact that the current 9p is a little too low to be sure to cover cost of charging. Hope that helps. Ian