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Waiting for C Class estate 350e...
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Discussion Starter #1
OK, so slightly confusing one here.

Just got a MB 350e, and unsure HOW to account for "Fuel"

Previously was like this :
Company pays for Petrol, private mileage recouped from me based on average MPG over month.

Now profile is
PHEV charged at home (my cost), Petrol Paid for by company. (so they get VAT back)
Personal mileage STILL to be recouped by company, however a few issues

Fuel used for commute is almost certain to be covered by Elec (purpose of car!)
Assumption is ALSO to be made that Company business (due to 50e piss poor range!) is Mostly Petrol
Confusion added to by me using Econ 7 at home (4.8p at night, 11p during day!)

Question is
What would HMRC see as reasonable in terms of month to month management of this

Does anyone have any experience or advice please ?
 

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Waiting for C Class estate 350e...
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13 Posts
Discussion Starter #4
The company owns the car (bought outright if that makes a difference)

The MD has pointed towards THIS from HMRC as a starting point, but as this is 13p a mile, with Petrol being circa £5 per gallon, I would need to get 39mpg to ensure it doesn't COST me anything. When running on Petrol alone, this could be tight from what I am seeing !
 

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No i8, waiting for an X5 40e & it wasn't listed...
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Arrange with company that you will pay for your private fuel directly, based on an approximate mileage basis & the real world fuel economy you achieve. Doing this with a company motorcycle already, will be applying same logic to PHEV shortly.
 

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What does your employee handbook say? What is the company's written policy? This is a matter of contract between you and them after all.

From your description they operate a policy where they cover fuel costs (presumably through a fuel card - or can you buy petrol from anywhere, with any payment method, and then make a claim?), and then charge the user of the car a pro-rated amount for their personal mileage.

The fact you now have a dual fuel car is unlikely to change that - I don't see on what basis you can decide to ask the company to pay for all the petrol while you pay for all the electricity.
 

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Waiting for C Class estate 350e...
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13 Posts
Discussion Starter #7
That's a fair point mgboyes. Even thought in Practice, that is how the fuel will be used !
I think it will probably be as per the HMRC link above until I have covered enough miles to justify any change to it

It's not so much the company policy that i am concerned about (*Tiny company, I am one of Directors!), but HMRC's attitude towards taxation/BIK/expenses/VAT etc.
 

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It's better to claim the 13p/mile for business journeys than pay 13p/mile for your private use if you believe you will do most private miles on Electricity. Just drive efficiently enough to match the mpg the HMRC believes you should achieve.
 

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Or look at it another way - the electricity is going to cost you around 30p to charge overnight and you will easily beat 39mpg using that as a start, charging at work if you can and the usual mpg on petrol unless you're doing a lot of petrol miles. If you're doing pretty much all your commuting on electric you can then afford to hoof it about the rest of the time and still break even or drive normally and you should be in pocket - even if it's only a little.
 

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I have a 350e company car. I pay for all fuel myself and then claim back business miles at 13p per mile. I am currently getting 54mpg (based on actual petrol use rather than what the car is telling me). This is driving in Eco+Hybrid modes with a reasonably light foot (as I am currently treating it as a competition to get the best mpg) charging once a day on a 26 mile door to door (52 mile round trip) commute plus the odd longer trip (one a week).

If you are not charging at all then you probably won't break even but with a regular charge even on a long trip I am getting above the break even point.

However... if your company is recouping at 13p per mile then you will have a problem because they are taking more money than the fuel actually costs.

Also don't use Sport+ apart from when you need to smile.
 
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