Essential car user allowance

Hi everyone

We review business mileage annually for individuals to assess if they should continue to receive an essential car user allowance. If they meet the threshold they would continue to receive for 12 months and if not allowance is removed. If anyone has the same process can you share what you have done for the lockdown period? Originally we planned to pro rata and ignore the months normal business could not resume but this was much longer than anticipated so not have majority of employees who have not hit threshold this year.

Many thanks

Comments (2)

Thanks Ian

Hi Laurie. We don't have an essential user car allowance but operate a job need car scheme which also has eligibility criteria based on annual business mileage. We have ignored the period from March 2020 to date and are using a combination of historic mileage plus expected mileage when we come out of the pandemic to decide on continued eligibility. Hope that helps Ian

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