Withdrawal of fuel benefit - EVs
Withdrawal of fuel benefit - EVs
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Discussion

Dilan

Original Poster:

40 posts

253 months

Monday 21st March 2022
quotequote all
Coming up to the time to choose a new company car, and I was almost certain that I'd go for an EV. Since I started with my current employer (nearly 8 years ago) I've always had fuel cards to buy fuel for business and personal use - the exact wording in my contract of employment is "an all expensed paid company car". However I'm now being told that the company "will not pay fuel benefit for EVs". The offer, as I work from home, is only to pay for a home charging point.
Are they allowed to withdraw this benefit?
Seems a bit unfair that probably half the tax benefit of me choosing an EV will disappear as I'll have to charge it myself!

Countdown

46,943 posts

218 months

Monday 21st March 2022
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Sorry if I'm missing something but how could they pay you the fuel benefit if you're not using any fuel?

Dilan

Original Poster:

40 posts

253 months

Monday 21st March 2022
quotequote all
The car is fully expensed. An expense of running an EV is the electricity you use to charge it.
If the employer isn't paying for the electricity then it's not fully expensed any more.

mickyh7

2,347 posts

108 months

Monday 21st March 2022
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Do you take Toilet Paper from work secretly?

Countdown

46,943 posts

218 months

Monday 21st March 2022
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Dilan said:
The car is fully expensed. An expense of running an EV is the electricity you use to charge it.
If the employer isn't paying for the electricity then it's not fully expensed any more.
Can you not claim 5ppm EV-rate for business mileage?

Dilan

Original Poster:

40 posts

253 months

Monday 21st March 2022
quotequote all
I work from home, or did you ignore that 'cos you were so excited about making a witty reply?

Dilan

Original Poster:

40 posts

253 months

Monday 21st March 2022
quotequote all
Yes I could claim that, but a benefit of the package is that my personal mileage is covered too.

mickyh7

2,347 posts

108 months

Monday 21st March 2022
quotequote all
I ignored it it for the witty comment.
You are coming across as a proper skinflint though!

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46,943 posts

218 months

Monday 21st March 2022
quotequote all
Dilan said:
Yes I could claim that, but a benefit of the package is that my personal mileage is covered too.
Ah OK, I understand. You've lost the free fuel for personal mileage which was previously paid for by the Employer.

I guess the £64m question is how much was it worth and will the employer negotiate? My guess is that "a fully expensed company car" means "fully expensed for company business" only but that is only a guess.

Out of interest if you'd decided to drive around Europe on a 2 week holiday would they have covered the fuel cost, or was there a limit?

Dilan

Original Poster:

40 posts

253 months

Monday 21st March 2022
quotequote all
mickyh7 said:
I ignored it it for the witty comment.
You are coming across as a proper skinflint though!
Fair enough smile
I do a lot of personal miles and an attraction of the job when I took it was that both business and personal mileage would be covered.
They are now reneging on this in my eyes (and yes I am tight!)

Countdown

46,943 posts

218 months

Monday 21st March 2022
quotequote all
Dilan said:
I work from home, or did you ignore that 'cos you were so excited about making a witty reply?
Slightly O/T but some of our staff argued that before lockdown they had unlimited free coffees/teas/soft drinks at work and now they were paying for them out of their own pocket and therefore the Employer should give them a £5 per week allowance........

Convert

3,757 posts

240 months

Monday 21st March 2022
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Just think of the P11d reduction in tax you’ll get from not having fuel benefits.

Dilan

Original Poster:

40 posts

253 months

Monday 21st March 2022
quotequote all
Countdown said:
Ah OK, I understand. You've lost the free fuel for personal mileage which was previously paid for by the Employer.

I guess the £64m question is how much was it worth and will the employer negotiate? My guess is that "a fully expensed company car" means "fully expensed for company business" only but that is only a guess.

Out of interest if you'd decided to drive around Europe on a 2 week holiday would they have covered the fuel cost, or was there a limit?
Yes, spot on. In the car I've got at the moment I use about £300-£400 of petrol a month, 95% of which is personal use. There has NEVER been any mention that the vehicle or fuel is for business use only, and I am taxed on the fuel benefit accordingly.
I did take my last car to France once, and did pay for fuel as the cards I have only work in the UK!

CharlesElliott

2,246 posts

304 months

Monday 21st March 2022
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You could buy another ICE car, and then you would still have the beneft?

Dilan

Original Poster:

40 posts

253 months

Monday 21st March 2022
quotequote all
CharlesElliott said:
You could buy another ICE car, and then you would still have the beneft?
You're quite right, I could, but this is an exercise in trying to pay the taxman less. Current petrol car costs me about £420/month in tax, EV would be about £30

robdcfc

524 posts

180 months

Monday 21st March 2022
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Dilan said:
You're quite right, I could, but this is an exercise in trying to pay the taxman less. Current petrol car costs me about £420/month in tax, EV would be about £30
So youd be £390 up

Dilan

Original Poster:

40 posts

253 months

Monday 21st March 2022
quotequote all
robdcfc said:
So youd be £390 up
Correct, less whatever the cost of charging at home would be.
Thanks for all the replies so far, but what I really want to know are the legalities of an employer withdrawing a benefit that is on my contract of employment.

CharlesElliott

2,246 posts

304 months

Monday 21st March 2022
quotequote all
My view on this would be that there is no clear definition (I presume) of ‘fully expensed’ so you would need to argue your definition vs theirs (whatever that is).

Even then, they are not withdrawing the benefit because you can still have the benefit by choosing an ICE car.

hepy

1,359 posts

162 months

Monday 21st March 2022
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To be fair, having the EV charger installed is worth a £800-£1000, and that pays for a lot of electric.

At current prices using overnight charging, 100 miles costs between £1.50 and £2, even if the price doubles, that £3-£4 per 100 miles.

For me, the risk here is they pay you for the mileage, but don't pay for the charger.

Also, the equivalent if a fuel card would be an account with a charging network, and that would cost them much more than recompensing part of your mileage from charging at home.

Can you work out how much it will cost you in mileage in average over a year, and ask for that as a flat rate expense?

edc

9,480 posts

273 months

Monday 21st March 2022
quotequote all
What electric cars were on the company list 8 years ago and how did they pay fuel benefit then?

How do you define 'all expenses paid' ? Do they pay parking fees, fines, congestion charge?