HMRC chasing plugin owners?
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Discussion

turbotoaster

Original Poster:

662 posts

194 months

Thursday 14th April 2022
quotequote all
Not sure which area this would go but hopefully maybe someone will have heard of this.

If you have a company car and its a plug in hybrid, is there a requirement written anywhere to specify how often that vehicle must be charged to ensure you pay the reduced BIK as if you dont charge it your just driving around in an automatic petrol vehicle.


Ive checked everywhere I can and could not find any information on it.

Is it just something they have not got around to looking at yet?

akirk

5,775 posts

136 months

Thursday 14th April 2022
quotequote all
You are still driving around in a Hybrid whether you use the main engine / electrics / push it off a cliff and free-fall to your destination.
There is no technology in place for HMRC to track how often the car chooses to use electric or fuel for its journey, nor is there any way of measuring or judging based on how often it is plugged in - you could plug it in every night but never drive on the electric motors - if the battery is always full it will never top up!

I would guess a total red herring and irrelevant - you get BIK based on the car it is not how you use it

turbotoaster

Original Poster:

662 posts

194 months

Thursday 14th April 2022
quotequote all
akirk said:
You are still driving around in a Hybrid whether you use the main engine / electrics / push it off a cliff and free-fall to your destination.
There is no technology in place for HMRC to track how often the car chooses to use electric or fuel for its journey, nor is there any way of measuring or judging based on how often it is plugged in - you could plug it in every night but never drive on the electric motors - if the battery is always full it will never top up!

I would guess a total red herring and irrelevant - you get BIK based on the car it is not how you use it
Work is asking us to start charging it at home, use a meter(plugs into your 13amp socket to monitor the KWH its taken and then put it on expenses, im guessing they want to have a record of proof its being charged incase HMRC come calling again(big billion pound international company)

Numpty with honours

217 posts

105 months

Thursday 14th April 2022
quotequote all
a very thought-provoking question.

We have never had to address that problem when we have had the revenue compliance unit visit.


akirk

5,775 posts

136 months

Thursday 14th April 2022
quotequote all
turbotoaster said:
akirk said:
You are still driving around in a Hybrid whether you use the main engine / electrics / push it off a cliff and free-fall to your destination.
There is no technology in place for HMRC to track how often the car chooses to use electric or fuel for its journey, nor is there any way of measuring or judging based on how often it is plugged in - you could plug it in every night but never drive on the electric motors - if the battery is always full it will never top up!

I would guess a total red herring and irrelevant - you get BIK based on the car it is not how you use it
Work is asking us to start charging it at home, use a meter(plugs into your 13amp socket to monitor the KWH its taken and then put it on expenses, im guessing they want to have a record of proof its being charged incase HMRC come calling again(big billion pound international company)
Is that not to pay your fuel / mileage or something like that? I would ask them why...
As I understand it - BIK is based on the model of car you buy - not how you use it, it is not linked to mileage or type of fuel you put in a car (e5 v e10?) or anything else - it is a simple theoretical exercise - you buy xyz car from this company - BIK is xxx Until HMRC / Government change that then anything your company id doing must be for a different purpose - or someone bored and overly-bureaucratic!

anonymous-user

76 months

Thursday 14th April 2022
quotequote all
It would seem to make sense as a matter of company policy to make sure people are charging them, especially if they're claiming expenses for mileage.

I've never heard of anything which requires HMRC to check.

turbotoaster

Original Poster:

662 posts

194 months

Thursday 14th April 2022
quotequote all
akirk said:
Is that not to pay your fuel / mileage or something like that? I would ask them why...
As I understand it - BIK is based on the model of car you buy - not how you use it, it is not linked to mileage or type of fuel you put in a car (e5 v e10?) or anything else - it is a simple theoretical exercise - you buy xyz car from this company - BIK is xxx Until HMRC / Government change that then anything your company id doing must be for a different purpose - or someone bored and overly-bureaucratic!
I only chose this car because of the low BIK compared to having a diesel before, BIK is normally calculated on CO2, Mpg and value I assume, so if my CO2 is much higher and MPG worse because im not using the vehicle as the taxman assumed then they are worried when they have HMRC in they will try and charge me.

Im against doing it and have spent time trying to find anything on HMRC with even a small mention of this but couldnt find anything, personally unless they have something in writing then I cant see them being able to do it, but wanted to check incase I just havent looked in the right place.

stumpage

2,189 posts

248 months

Thursday 14th April 2022
quotequote all
With PHEVs the only practical way to claim your business fuel is pence per mile. So you would be off your nut not to plug it in as much as possible to get the best MPG.

turbotoaster

Original Poster:

662 posts

194 months

Thursday 14th April 2022
quotequote all
stumpage said:
With PHEVs the only practical way to claim your business fuel is pence per mile. So you would be off your nut not to plug it in as much as possible to get the best MPG.
I have a fuel card, so just pay 11p per mile for private mileage, the business mileage i dont pay anything for

Rich Boy Spanner

1,750 posts

152 months

Thursday 14th April 2022
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HMRC very unlikey to be behind this, too complex. They charge BIK at the rate for the car. Sounds more like the company doing it for mileage payback.
We have a fair few PHEV company cars where I work, we aren't doing any of this.

Collectingbrass

2,651 posts

217 months

Thursday 14th April 2022
quotequote all
stumpage said:
With PHEVs the only practical way to claim your business fuel is pence per mile. So you would be off your nut not to plug it in as much as possible to get the best MPG.
Until your employer's expenses & accounting systems & bean counters require receipts for the pence x miles value claimed so they can maximize their VAT recovery.
Thursday 14th April 2022
quotequote all
How are people being taxed for the fuel benefit when charging at work?

akirk

5,775 posts

136 months

Thursday 14th April 2022
quotequote all
turbotoaster said:
akirk said:
Is that not to pay your fuel / mileage or something like that? I would ask them why...
As I understand it - BIK is based on the model of car you buy - not how you use it, it is not linked to mileage or type of fuel you put in a car (e5 v e10?) or anything else - it is a simple theoretical exercise - you buy xyz car from this company - BIK is xxx Until HMRC / Government change that then anything your company id doing must be for a different purpose - or someone bored and overly-bureaucratic!
I only chose this car because of the low BIK compared to having a diesel before, BIK is normally calculated on CO2, Mpg and value I assume, so if my CO2 is much higher and MPG worse because im not using the vehicle as the taxman assumed then they are worried when they have HMRC in they will try and charge me.

Im against doing it and have spent time trying to find anything on HMRC with even a small mention of this but couldnt find anything, personally unless they have something in writing then I cant see them being able to do it, but wanted to check incase I just havent looked in the right place.
You might be over-thinking this wink
The BIK is calculated based on the manufacturer figures - there has never been any point where HMRC have adjusted based on actual emissions - totally impossible for them to do so...

The reason why there is nothing on their website is because it is not a thing
Equally they don't tell you what they do for people who choose to wear orange socks / green trousers and pink jumpers - because they don't care and it is not a thing biggrin

If your business is asking you to record figures, then they will have a reason - VAT reclaiming on fuel bought might be one - otherwise, who knows - nothing to do with HRMC checking how often you charge your car!
Thursday 14th April 2022
quotequote all
akirk said:
You might be over-thinking this wink
The BIK is calculated based on the manufacturer figures - there has never been any point where HMRC have adjusted based on actual emissions - totally impossible for them to do so...

The reason why there is nothing on their website is because it is not a thing
Equally they don't tell you what they do for people who choose to wear orange socks / green trousers and pink jumpers - because they don't care and it is not a thing biggrin

If your business is asking you to record figures, then they will have a reason - VAT reclaiming on fuel bought might be one - otherwise, who knows - nothing to do with HRMC checking how often you charge your car!
If you're charging at work for commuting or personal travel its a taxable benefit no? Like the fuel you declare on a p11d?

jonwm

2,667 posts

136 months

Thursday 14th April 2022
quotequote all
Cant Find a Charger when I need one said:
akirk said:
You might be over-thinking this wink
The BIK is calculated based on the manufacturer figures - there has never been any point where HMRC have adjusted based on actual emissions - totally impossible for them to do so...

The reason why there is nothing on their website is because it is not a thing
Equally they don't tell you what they do for people who choose to wear orange socks / green trousers and pink jumpers - because they don't care and it is not a thing biggrin

If your business is asking you to record figures, then they will have a reason - VAT reclaiming on fuel bought might be one - otherwise, who knows - nothing to do with HRMC checking how often you charge your car!
If you're charging at work for commuting or personal travel its a taxable benefit no? Like the fuel you declare on a p11d?
I wandered if they would catch up with this at some point, my old place that I left last year had thousands of company cars, the incentive to get out of the diesel 3 series and into a hybrid / full electric was considerable in tax saving (all had fuel cards) most GM's charged the car on site all day so never paid a penny of "fuel", so going from circa £400 to £500 a month on BIK to £50! any business miles were claimed at £0.04p too even thought the site paid for the electric, always seemed strange to me!

Effectively claiming mileage from work for the electric they put in!

JD

3,086 posts

250 months

Thursday 14th April 2022
quotequote all
turbotoaster said:
stumpage said:
With PHEVs the only practical way to claim your business fuel is pence per mile. So you would be off your nut not to plug it in as much as possible to get the best MPG.
I have a fuel card, so just pay 11p per mile for private mileage, the business mileage i dont pay anything for
Does your company provide any payment to cover home charging?

Export56

576 posts

110 months

Thursday 14th April 2022
quotequote all
I had a PHEV, never actually plugged it in as I had a fuel card and fuel was 'free'. My mpg was 35, as opposed to my diesel that got 45 and cost me hundreds a month in BIK. Whole thing was crazy.

Mouse Rat

2,019 posts

114 months

Thursday 14th April 2022
quotequote all
turbotoaster said:
Not sure which area this would go but hopefully maybe someone will have heard of this.

If you have a company car and its a plug in hybrid, is there a requirement written anywhere to specify how often that vehicle must be charged to ensure you pay the reduced BIK as if you dont charge it your just driving around in an automatic petrol vehicle.


Ive checked everywhere I can and could not find any information on it.

Is it just something they have not got around to looking at yet?
There is no requirement.

If you claim your business mileage at an agreed rate. ie 14ppm, then it would make sense for you to charge at home. As its a £benefit to you to get max mpg.

If you have a fuel card, you don't care what the mpg is. But the company may incentive you to charge at home.

However the HMRC do not care.




Edited by Mouse Rat on Thursday 14th April 17:27

Mr E

22,689 posts

281 months

Thursday 14th April 2022
quotequote all
Cant Find a Charger when I need one said:
How are people being taxed for the fuel benefit when charging at work?
They’re not.
https://www.gov.uk/expenses-and-benefits-electric-...

oop north

1,650 posts

150 months

Thursday 14th April 2022
quotequote all
An employer getting you to charge at home and then paying you for it is going to be creating a taxable benefit in kind unless it only reimbursed for the business mile proportion.

I can imagine a company doing this so they can make various statements in its annual accounts regarding sustainability. There’s going to be increasing pressure for this to happen as time goes on