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.
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.
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?
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...!!
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
Foliage said:
This all sounds like bulls
t to me.
If I had a privately owned tesla id expect at least 45p per mile, how the company deals with tax on this, not my problem.
If I had a company tesla id expect to be reimbursed for any fuel ive used (electricity is still a fuel) in the course of business, with the supply of receipts, not sure exactly how id do this... separate meter for the tesla and take photos after each time the vehicle is charged perhaps, this will get complicated (due to peak/offpeak electrity tariffs etc) but isn't beyond the wit of man. Again how the company deals with the tax on that isn't my problem.
The charger in your home, meter and any other kit would need to be lumped into the price of the car at source.
If it was my business id be encouraging this and of course performing a cost benefit analysis, because tbh the environment in the sense of a business is irrelevant, profit is everything.
Sounds to me that who ever you've spoken too is to lazy to bother looking into it properly or see's you having a tesla as 'aspirational' and is jealous.
You can get 45p a mile through tax allowance IF its your car used on company business. What you cant get is anything if its a company car, not even 5p a mile towards electricity. t to me.If I had a privately owned tesla id expect at least 45p per mile, how the company deals with tax on this, not my problem.
If I had a company tesla id expect to be reimbursed for any fuel ive used (electricity is still a fuel) in the course of business, with the supply of receipts, not sure exactly how id do this... separate meter for the tesla and take photos after each time the vehicle is charged perhaps, this will get complicated (due to peak/offpeak electrity tariffs etc) but isn't beyond the wit of man. Again how the company deals with the tax on that isn't my problem.
The charger in your home, meter and any other kit would need to be lumped into the price of the car at source.
If it was my business id be encouraging this and of course performing a cost benefit analysis, because tbh the environment in the sense of a business is irrelevant, profit is everything.
Sounds to me that who ever you've spoken too is to lazy to bother looking into it properly or see's you having a tesla as 'aspirational' and is jealous.
Foliage said:
JonV8V said:
You can get 45p a mile through tax allowance IF its your car used on company business. What you cant get is anything if its a company car, not even 5p a mile towards electricity.
How do you claim for public transport? an all electric train for example, or an electric taxi?Or infact a hotel stay, or a meal?
Public transport, hotels, meals etc are generally all recovered at the face value of a receipt.
If you don't believe me, please find some evidence to contradict it rather than just quote other irrelevant expenses.
Foliage said:
JonV8V said:
Are you being serious?
Public transport, hotels, meals etc are generally all recovered at the face value of a receipt.
If you don't believe me, please find some evidence to contradict it rather than just quote other irrelevant expenses.
If you have a company car why couldn't you claim the fuel at the face value of a receipt? Keep a comprehensive mileage log, pay for your personal used fuel yourself.Public transport, hotels, meals etc are generally all recovered at the face value of a receipt.
If you don't believe me, please find some evidence to contradict it rather than just quote other irrelevant expenses.
Also having a look at the HMRC website, lots of mentions of zero emission cars but cant find any mention of fuel. I think a quick call to HMRC would likely give an answer.
Sounds to me like your company is just being a challenge.
Explicitly states what I'm saying - last entry
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