Company car with personal mileage allowance

Company car with personal mileage allowance

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Muzzer79

Original Poster:

10,089 posts

188 months

Wednesday 20th March
quotequote all
I have an employee, recruited before I joined.

They live quite some distance from the office, so it was agreed that their 'personal mileage' would be covered, so they are not out of pocket by travelling to said office.

They have also been promised an electric company-supplied car, thereby limiting BiK exposure.

If it were an ICE car, we would simply source and issue a fuel card and allow them to use it for personal miles.

However, how does this generally work with EV's? AIUI, HMRC doesn't recognise electricity as a fuel, so there is no BiK on it.

In terms of recompensing for personal miles, how do we therefore do that?

Muzzer79

Original Poster:

10,089 posts

188 months

Wednesday 20th March
quotequote all
MaxFromage said:
Muzzer79 said:
In terms of recompensing for personal miles, how do we therefore do that?
You have a number of choices:

https://www.icaew.com/insights/tax-news/2023/sep-2...
Excellent, thank you thumbup