Electric only and company mileage rates/ tax
Discussion
It's been touched on in tesla threads but I'm told point blank by my company that HMRC do not see electric as a vehicle fuel for the purposes of reimbursement for company mileage. Ie if I had a company car or even a private car that was purely electric, I could not claim any form of reimbursement for mileage from my employer to cover fuel.
I should also add my employer should know given they're one of the biggest accountancy companies, which equally means they'd never play fast and loose and plead ignorance afterwards like a small company might.. They have admitted it appears to be an anomaly but can only go by HMRC guidelines.
There aren't that many purely electric cars, a lot seem to be hybrid which is ok, but has anyone any experience of this problem who do?
I guess if I was reimbursed 5p over 10k business miles/year that's only £45 a month but there is a principal here.
I should also add my employer should know given they're one of the biggest accountancy companies, which equally means they'd never play fast and loose and plead ignorance afterwards like a small company might.. They have admitted it appears to be an anomaly but can only go by HMRC guidelines.
There aren't that many purely electric cars, a lot seem to be hybrid which is ok, but has anyone any experience of this problem who do?
I guess if I was reimbursed 5p over 10k business miles/year that's only £45 a month but there is a principal here.
Have the employer install a charging point at both ends as the implication here is that a BIK exemption can be applied for https://www.gov.uk/government/uploads/system/uploa...
Or don't use an electric only car yet - as noted in para 5.5 it all still evolving
Or don't use an electric only car yet - as noted in para 5.5 it all still evolving
johnnyreggae said:
Have the employer install a charging point at both ends as the implication here is that a BIK exemption can be applied for https://www.gov.uk/government/uploads/system/uploa...
Or don't use an electric only car yet - as noted in para 5.5 it all still evolving
No they haven't but then I couldn't claim if I drove to my normal place of work anyway.Or don't use an electric only car yet - as noted in para 5.5 it all still evolving
It seems that as electric isn't a fuel they can't pay a contribution, but if I owned the car myself I can still claim 40p/mile tax relief through AMR.
talksthetorque said:
Will they let you claim back the electricity - purchased at the various charge points - through your expenses?
No. When it comes to cars, it seems electricity is not a fuel and therefore they see no reason why you'd need any.I've chased it through both the expenses people and also the 'environmental sustainability and all things green' department who looked into it and came to the same conclusion.
In the .gov blurb via the attached link it says that AMAP is payable as per petrol or diesel cars, for privately owned EVs on company business mileage.
So if I use my privately owned Leaf for company mileage I can still claim the 45p per mile rate for the first 5k miles, as with any privately owned petrol or diesel cars?
So if I use my privately owned Leaf for company mileage I can still claim the 45p per mile rate for the first 5k miles, as with any privately owned petrol or diesel cars?
appletonn said:
In the .gov blurb via the attached link it says that AMAP is payable as per petrol or diesel cars, for privately owned EVs on company business mileage.
So if I use my privately owned Leaf for company mileage I can still claim the 45p per mile rate for the first 5k miles, as with any privately owned petrol or diesel cars?
I think its 40p for 10k but thats how I read itSo if I use my privately owned Leaf for company mileage I can still claim the 45p per mile rate for the first 5k miles, as with any privately owned petrol or diesel cars?
talksthetorque said:
45p for first 10k per year 25 after that.
But the OP is on about a company car so rates basically just pay for fuel.
Hmm OP says that if he had a company OR privately owned EV, he would not be able to claim for business mileage?But the OP is on about a company car so rates basically just pay for fuel.
Hence why I went to check the info at the link, as I'm now using a privately owned Leaf for business mileage, having opted out of diesel company car
appletonn said:
Hmm OP says that if he had a company OR privately owned EV, he would not be able to claim for business mileage?
Hence why I went to check the info at the link, as I'm now using a privately owned Leaf for business mileage, having opted out of diesel company car
I'm the op and it's slightly farcical as its been explained to me. There is no gov allowed rate for expenses for elec as its not a fuel. So company or private I'm told I can't be reimbursed by my employer like I do for diesel (about 17p a mile I think)Hence why I went to check the info at the link, as I'm now using a privately owned Leaf for business mileage, having opted out of diesel company car
However HMRC does seem to allow you to claim the 45p/10k miles etc in your tax code if you own the car.
It's something like this...
Own car. Diesel
17p from employer plus (45-17) tax allowance [first 10k mikes]
Comp car diesel
17p from employer
Own car electric
45 tax allowance
Company car electric
Big fat zero
JQ said:
Well that's destroyed my plan to get an electric company car. What a ridiculous situation.
I'd double check as I'm only reporting what my company told me and I was looking for other people's experience.If you have a hybrid you can claim based on the size of ice you have but that's also farcical. I recon an i3 you can't claim for, a i3 Rex you can...!!
JonV8V said:
JQ said:
Well that's destroyed my plan to get an electric company car. What a ridiculous situation.
I'd double check as I'm only reporting what my company told me and I was looking for other people's experience.If you have a hybrid you can claim based on the size of ice you have but that's also farcical. I recon an i3 you can't claim for, a i3 Rex you can...!!
Surely HMRC approved mileage rates are for more than just fuel? In my diesel I currently claim 45p a mile for the first 10k miles, which then drops therafter. In my car, roughly 10p of that amount is the fuel cost per mile and I always assumed the remaining 35p was for consumables such as tyres, servicing and mileage based depreciation. I would therefore expect to be able to claim for those non-fuel related car running costs on an EV.
Done get fuel rates and mileage rates mixed up. I'm fairly certain you can claim 45p/mile even for an EV.
It's the lower fuel rates you can't claim as you're not using any fuel. However you are incurring an expense of electricity which could be submitted as that. Eg 2000 kWh @ 8p/kWH. If you have an olev grant funded smart meter it should come with its own separately metered supply. You can then stick in a claim for the kWh used over the business miles you've done. Or just claim the 45p.
Still waiting for my accountants to sign of my end of years accounts. Think the EV PCP and FYWDA is giving them a head ache. Lol
It's the lower fuel rates you can't claim as you're not using any fuel. However you are incurring an expense of electricity which could be submitted as that. Eg 2000 kWh @ 8p/kWH. If you have an olev grant funded smart meter it should come with its own separately metered supply. You can then stick in a claim for the kWh used over the business miles you've done. Or just claim the 45p.
Still waiting for my accountants to sign of my end of years accounts. Think the EV PCP and FYWDA is giving them a head ache. Lol
robemcdonald said:
If you went for something like an i3 with range extender option wouldn't you be able to claim 11p a mile for the engine?
Yes you can hence why I stressed purely electric. It feels a bit of a mess as a system as you get most of the tax benefits with an i3 based on the electric side of it and can claim other benefits because of the petrol. I've gone for a tesla so I don't have the option Edited by robemcdonald on Friday 2nd October 06:49
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