[MK Tom]

Ok so it wont be as great financially next year when Benefit in Kind for zero emission cars will go up from 0 to 5%, but currently the incentives for a pure electric car through the company are great! Zero cost in fact other than the electricity!
I have hit one stumbling block though which is around business mileage reclaim. With an ICE as company car you can claim mileage at following rates:-
Company cars: advisory fuel rates
The rates below apply from 1 March 2014.

Engine size PetrolLPG
1400cc or smaller14p9p
1401cc to 2000cc16p11p
Bigger than 2000cc24p16p
Engine size Diesel
1600cc or smaller12p
1601cc to 2000cc14p
Bigger than 2000cc17p
However there is no mention of cars run on pure electricity although there is a mention for hybrid vehicles where the rate against the engine/fuel applies to all hybrid miles.

So next year I was thinking of getting a range extender (PHEV) as company car because:-
1) i'm going to have to pay 5% BIK on the Leaf and PHEV is the same at 5%
2) I can then claim business mileage at 14p for a i3-REX or Ampera up to 17p for the Volvo

Anyone else with Company car had similar thoughts?
Can I claim the entire electricity cost associated with charging?

 

[Derekosb]

This page from the HMRC explains the tax treatment for a Company electric car (made available for private use) and a private car used for business.

http://www.hmrc.gov.uk/manuals/eimanual/EIM23900.htm


HTH

Derek

 

[MK Tom]

This page from the HMRC explains the tax treatment for a Company electric car (made available for private use) and a private car used for business.

http://www.hmrc.gov.uk/manuals/eimanual/EIM23900.htm


HTH

Derek

So as my place of work is home and my chargepoint is at home can I as employer reclaim the cost of electricity at home office used to supply company car? I would guess that I would need a separate supply just to the "office" and run the chargepoint off that office to reclaim the electricity but as is a domestic supply that is probably not possible.

I cant remember who but someone on this forum claims back the home chargepoint electricity from his employer...

 

[Brooktop]

Even more complicated when you're running an EREV. I've agreed a per mile rate of 15p with my employer.....on top of the car allowance.

 

[Derekosb]

Mine is a private (employee's) car used for business so I get paid the 45p per mile rate. My company is still to decide whether to provide a proper charge point at the office for me.

Derek

 

[Julian Thomas]

I cant remember who but someone on this forum claims back the home chargepoint electricity from his employer...

Me

I have a company car, leased, and a fuel card.

I pay BIK on 5% of the list price (though going up in future years - worth checking the sums)
I pay tax for the fuel card, at 5% of the arbitrary £22kish benefit of fuel for private use (don't get me started on that topic)
I have a Polar charge point at home, and download my usage every month and reclaim at cost (c200 kWh @ 10.1p + 5% VAT)

We sought advice from our HMRC officer, and received guidance that what we were doing was correct. Electricity is not deemed a fuel, and the benefit of "fuel" for private usage has already been taxed for the fuel card, so they wouldn't tax twice for the same benefit.

Make sense?

 

[MK Tom]

Ok so I read similar, however if I use the calculator on HMRC for this tax year BIK is 0% of list price and tax for personal fuel if specified also 0%.

I know electricity is not seen as a fuel though (which I think is rubbish as electrons can be counted and put into a car) but as I have been taxed for personal use (even though its £0) doesn't that mean I can claim the cost of running?

 

[Julian Thomas]

Fuel and cars are separate taxable items. You seem to have the BIK on the car nailed.

For fuel, you're in a different situation to me because you don't have a fuel card... I would refer to the earlier post for guidance, but definitely worth a phone call to check.

One thing you MUST be aware of, is that HMRC's computer is struggling with the 5% band. Every time the system gives me a new tax code, it errors and makes it 10%. This is a known bug at HMRC and they have to manually override my tax code with a "T" code. Make sure you check your coding notice!!

 

[MK Tom]

If nuclear energy can be considered fuel why can't electrons in a battery? But even so, they are allowing you to reclaim electricity because you are taxed on fuel card benefit! So they ARE including it under that category!