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Discussion Starter · #1 ·
Hi,

I wondered if anybody has experience in claiming private mileage for Hybrid car?

I am looking to change my company car to a Hybrid but there is some confusion in what I would pay to my employee for personal mileage which is currently 12p per mile for my desire car.

The Government website states that Hybrid cars would also fall under 12p per mile for personal mileage but the question is would this still apply if I was just in pure electric mode not using any fuel.

Paying 12p a mile in electric mode does seem strange when I am paying for the electric at home and not using fuel. It will be a lease hire car so no depreciation.

I have seen different scenarios where employers charge employees a reduce rate for driving on electric.i

Many thanks

Paul
 

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Discussion Starter · #3 ·
I understand that but I would be responsible for reporting my own mileage which is exactly what I do now. It’s not a case of trying to get away with anything but it just seems strange that on all my journeys under say 30 miles, I have to pay for fuel when I am not using any.
 

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But a whole lot of company PHEV drivers never plug them in, so without some kind of telemetry it’s not going to be an option.
 

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I would guess this is down to experiences with the congestion charge where in the early days lots of phev's were bought and never plugged in to get round it.

I take it this is a phev and not a hybrid like a Prius
 

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I have a PHEV on company car scheme. I claim for business mileage and the company uses the government advisory rates for the respective fuel type and engine size.

If you check the government site (Advisory fuel rates) then you will see that it makes no distinction for a full ICE or PHEV.

Be careful on you choice of car and engine size, though. Many have stated size of 1.5L or less and the fuel rate may not cover your actual costs. This is why I went for the Mitsi Outlander PHEV with 2.4L engine. That way, I'm quids in when I use it for business, even on long trips where I never get less than 45mpg. (By the way, I have a wall box and it's always fully charged.)
 

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Discussion Starter · #7 ·
Sorry, yes a plug in Hybrid. I appreciate that people still do it but it doesn’t benefit the company when they do that
 

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Hi,

I wondered if anybody has experience in claiming private mileage for Hybrid car?

I am looking to change my company car to a Hybrid but there is some confusion in what I would pay to my employee for personal mileage which is currently 12p per mile for my desire car.

The Government website states that Hybrid cars would also fall under 12p per mile for personal mileage but the question is would this still apply if I was just in pure electric mode not using any fuel.

Paying 12p a mile in electric mode does seem strange when I am paying for the electric at home and not using fuel. It will be a lease hire car so no depreciation.

I have seen different scenarios where employers charge employees a reduce rate for driving on electric.i

Many thanks

Paul
I think a lot depends on how flexible your employer is.

A better option would be for you as employee to pay for all fuel costs and claim business mileage, and for your employer to reimburse you for business mileage at the advisory rate for business mileage. This is how my employer does it.
 

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Discussion Starter · #13 ·
They're not though.

Thanks for this. The interesting part is:

You will not need to use the advisory rates where you can show that employees cover the full cost of private fuel by repaying at a lower mileage rate.

Surely this is where driving on pure electric comes in to play
 

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Thanks for this. The interesting part is:

You will not need to use the advisory rates where you can show that employees cover the full cost of private fuel by repaying at a lower mileage rate.

Surely this is where driving on pure electric comes in to play
I think that is correct - the rates are after all advisory.

I think the issue is if your employer follows the advisory rates the process is simple for them to comply with and demonstrate compliance.

Your employer does not have to follow the advisory rates if they can show that employees cover the full cost by repaying at a lower rate. So the onus is now on your employer to prove this to the satisfaction of HMRC.

I suspect it therefore depends on whether your employer thinks improved environmental performance is important enough to justify the extra paperwork / risk of HMRC disagreeing with their evidence.
 

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If the company doesn't pay the advisory rate, then the employee claims the remainder on their annual tax return (assuming they submit one). Or the employee can claim the full advisory rate as job expenses on their HMRC account. This just increases the PAYE code. Of course this means the employee needs to keep detailed journey logs, but it does mean they don't need to submit mileage claims to the company, which can be onerous.
 

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If the company doesn't pay the advisory rate, then the employee claims the remainder on their annual tax return (assuming they submit one). Or the employee can claim the full advisory rate as job expenses on their HMRC account. This just increases the PAYE code. Of course this means the employee needs to keep detailed journey logs, but it does mean they don't need to submit mileage claims to the company, which can be onerous.
I think the OP's problem is the other way around - his employer is charging him the advisory rate for private miles, giving him no incentive to get a PHEV / home charger.
 

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I think the OP's problem is the other way around - his employer is charging him the advisory rate for private miles, giving him no incentive to get a PHEV / home charger.
Apologies, I had to read it again. Why would an employer pay an employee for private miles? Is there something I'm missing? You can only claim mileage for business use. As an employee, what I drive in my own time is paid from my own pocket. If it is done, then it'll surely be taxable benefit.
 

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Apologies, I had to read it again. Why would an employer pay an employee for private miles? Is there something I'm missing? You can only claim mileage for business use. As an employee, what I drive in my own time is paid from my own pocket. If it is done, then it'll surely be taxable benefit.
The OP's employer has presumably given him a fuel card, and he is required to use it purchase all fuel.

The OP's employer is then charging them 12p per mile for private miles. The OP is planning to do as many miles as possible with electric, so the fuel cost to the employer will therefore be much less than 12p per mile.

The OP will therefore miss out twice, firstly for his electricity (which his employer will not reimburse him for) and secondly by paying his employer a lot more than the actual fuel cost for the fuel he uses.
 

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I get 40p a mile on my privately owned PHEV, no separate rate for electric or petrol. If there’s nothing specifying you have to declare you’re driving a PHEV you may as well take advantage of the system
 

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I get 40p a mile on my privately owned PHEV, no separate rate for electric or petrol. If there’s nothing specifying you have to declare you’re driving a PHEV you may as well take advantage of the system
I don’t think this is about a private vehicle being used for business though.

The OP has a company car, for which the company pay for all fuel via a card or similar.

To reduce the BIK liability for the employee, you can opt to pay for your private miles, otherwise the BIK rates for company fuel used for private mileage is punishing.

I think the OP is asking why he should pay the 12p per mile his employer asks him to for private use of the company vehicle, when he’s using his home electricity to charge it?

The rules are the rules, the suggestion around paying for all fuel and charging business miles back to your employer is the best one in this scenario, but not all employers will do that.

The 12p per mile advisory rate is designed to cover more than just the fuel of course, it would also cover the and tear and maintenance.

It’s still a cheap way to get a new car though, with no maintenance worries etc.

Edited for typos!
 
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