Charging Cost for Business Use?
Discussion
I am testing a MY and a 3 this weekend with a view to getting one of them as my new company car, almost certainly the LR version in each case. I dont do a huge amount of business miles, but my office is a 550 mile round trip from my home and I regularly visit clients over 150 miles away. Normally I claim at the approved mileage rate and because my 330e hybrid does around 55 mpg with a light foot, I make a small profit on the claim at 0.17p per mile.
I note that the approved rate for EVs is now 0.08p per mile. I will be home charging at 0.16p per KWh so that part of the usage is all covered given I should get 3-4 miles per kwh overall. What sort of prices would I be paying at Tesla chargers because it seems that for business use, charging on the road is very costly and the 0.08p approved rate per mile is nowhere near what is needed to reclaim expenses at 60-80p per kwh as most public charges seem to be.
How do other business users cope because it appears on the surface that a very high mileage business user who goes outside the car's range frequently could end up with a personal charging bill of hundreds of pounds per month potentially? It seems a weird anomaly given the tax system for company car users has always been quite beneficial in the past (you can argue about the politics of this another time please!).
I note that the approved rate for EVs is now 0.08p per mile. I will be home charging at 0.16p per KWh so that part of the usage is all covered given I should get 3-4 miles per kwh overall. What sort of prices would I be paying at Tesla chargers because it seems that for business use, charging on the road is very costly and the 0.08p approved rate per mile is nowhere near what is needed to reclaim expenses at 60-80p per kwh as most public charges seem to be.
How do other business users cope because it appears on the surface that a very high mileage business user who goes outside the car's range frequently could end up with a personal charging bill of hundreds of pounds per month potentially? It seems a weird anomaly given the tax system for company car users has always been quite beneficial in the past (you can argue about the politics of this another time please!).
MaxFromage said:
If the trip is for business, the full charging cost can be passed on to the employer. If you're commuting, obviously this doesn't apply.
Interesting, I've always understood (from the notes on the revenue website page) that the recommended rates were the ones to be used and if you claim a higher rate per mile, you pay tax on the difference? It's never been an issue with ICE cars because I've always beaten the cost per mile easily. This is all pure business travel; I have no regular place of work beyond my spare bedroom!Really interesting guys, I'll be bookmarking this thread as the difference is certainly not pennies.
For example 2-3 times per year I visit our office in Scotland. That's a 550 mile round trip, in a 3LR, best case with a light foot I guess about 300 of that could be done from home charging. So that leaves 250 miles at say 0.65p per kwh at 3.8 m per kwh. I reckon that's around £42 for which I could only claim back around £5 at the approved rate.
Hopefully presentation on paper of the amount of public charging done on route would be enough to get a fuller payout without tax implications?
For example 2-3 times per year I visit our office in Scotland. That's a 550 mile round trip, in a 3LR, best case with a light foot I guess about 300 of that could be done from home charging. So that leaves 250 miles at say 0.65p per kwh at 3.8 m per kwh. I reckon that's around £42 for which I could only claim back around £5 at the approved rate.
Hopefully presentation on paper of the amount of public charging done on route would be enough to get a fuller payout without tax implications?
CheesecakeRunner said:
Eh? 250miles x 8p per mile is £20. Ok, it’s still less than the £42 the public charging cost but it’s not a fiver. And you’d be claiming for 550 mile anyway, so your total claim would be for £44.
Yeah, I screwed up the calculation on that one. Probably over-analysing things!OP here, enjoying the discussion in here about what a mess the HMRC rules are; our company actually seems to have no standard method but I am told if I submit evidence of public charging for business use they will pay me that as a monetary amount whilst home charging would be at the 8p recommended rate measured by the mile!
Anyway, we ordered a Model 3 LR in blue today so it was worth asking the question after all!
Anyway, we ordered a Model 3 LR in blue today so it was worth asking the question after all!
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