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Discussion Starter #1
I'm in the process of getting a Chargepoint approved / installed at work. Does anyone know if charging at work can be classed as a benefit in kind, and therefore taxable?
The Chargepoint won't have RFID, so I struggle to see how a business would monitor usage and therefore apply the necessary tax.
I've had a quick look on HMRC but it does not mention anything, only electric company vehicles are not taxable.
 

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Yes.

The advice we had from HMRC was that it's fuel if it's provided for employees and is therefore taxable (but for visitors it is ok)

I pay BIK for my car & fuel. The BIK for fuel covers my fuel card + electricity at home / at work. HMRC said that "fuel" can only be taxed once for hybrids.

The BIK for both car and fuel is based on the emissions of the vehicle - mine is in the 5% bracket, so my BIK is 5% of the £20kish fuel benefit figure, so the actual cost of fuel card + electricity to me (in terms of the tax I have to pay) is about £30/month...
 

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Hi Lee,
Will it be charging your own car or a company car, not that I am an expert in the field of taxation, but if your company is giving you something for free you can bet your bottom dollar HMRC will want a something in return.
Gary
 

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HMRC told us that it's uncharted territory for them, but if it's providing fuel for an employee - company car or private car - then it's exactly the same as providing petrol, and is taxed in the same way (BIK)...
 

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HMRC told us that it's uncharted territory for them, but if it's providing fuel for an employee - company car or private car - then it's exactly the same as providing petrol, and is taxed in the same way (BIK)...
How does that work? Any links? I mean is it value related, so £100 in electric not a massive amount, I assume still taxed at 20,40 and so on percent?
 

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Brace yourself for the most bizarre thing you'll hear this week.

HMRC say that the benefit of free fuel is equivalent to your employer giving you £21,100 in cash. Just because. Completely random number.

You are then taxed on a % of that figure based on your emissions.

You pay 20/40/45% tax on that number.


http://www.hmrc.gov.uk/helpsheets/hs203.pdf
 

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But at the moment for a pure ev the taxable rate is 0% for fuel and the car itself, however come 2015/2016 (I think) the taxable rate will be 9% for an ev! hence £21,100 x 9% x your tax rate 10% or 20% or 40%, then by 2018 the 9% will have risen to13%.
Gary
 

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Keep in mind that in April 2015 BIK goes from 0% to 5% for EVs increasing to 13% by April 2018 making it cheaper to lease and pay BIK Comp Car Tax on a Golf Bluemotion rather than drive a Nissan LEAF.
 

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How does that work? Any links? I mean is it value related, so £100 in electric not a massive amount, I assume still taxed at 20,40 and so on percent?
£100 is irrelevant to HMRC. The benefit is "fuel provided for private use", and that's worth £21,100 per year. Seriously.
 

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Now this is the kind of thing that really makes my blood boil! Will HMRC be giving the company a TAX credit for the electricity used? No, I suspect not. They are quite happily going to tax the same thing twice.
 

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£100 is irrelevant to HMRC. The benefit is "fuel provided for private use", and that's worth £21,100 per year. Seriously.
I think I understand but my brain refuses to believe this is correct? If someone owns/leases their own EV and the company they work for offers on-site charging for employees, they are charged tax as though that electricity is worth £21k a year? Really?!
 

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Discussion Starter #14
It's my own car.

I don't see how you can be tax on £21,100, where was that figure plucked from, there's very few people I know who use that much in fuel in 2 years!!!
 

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I think I understand but my brain refuses to believe this is correct? If someone owns/leases their own EV and the company they work for offers on-site charging for employees, they are charged tax as though that electricity is worth £21k a year? Really?!
Yes, it's a "benefit in kind" - literally, whether petrol, diesel or electricity. But the percentage weighting applied based on the vehicle emissions means it will be 0% of £21,100 until next April I think, then it will increase.

The alternative is for the employee to reimburse the company for the raw cost of the fuel used for private mileage - business mileage is fine.
 

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It's my own car.

I don't see how you can be tax on £21,100, where was that figure Ickes from, there's very few people I know who use that much in fuel in 2 years!!!
Lee, the £21,100 figure is for the fuel. It doesn't matter whether you own the vehicle or the company do - that is how HMRC calculate the value of "fuel" provided for private use.
 

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Discussion Starter #17
£21,100 can't be right, some people don't even earn that much in a year!!!

Worst case, I reckon if I charge up (approx 50% remaining battery life) every day at work for 48 weeks of the year, it would cost no more than £300 (that's using my domestic kWh rate).
 

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The alternative is for the employee to reimburse the company for the raw cost of the fuel used for private mileage - business mileage is fine.
Would that fly with HMRC? If so that seems a much better idea (when the 0% stops, 5% would be £1899 assuming the £21k figure remains), they could then take whatever it is (hundreds maybe) out of wages rather than the much larger sum in tax.
 
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