Many business owners and their staff are turning to fully electric cars as their company car of choice, but how do they claim for the costs of charging the vehicles at home when they are undertaking business journeys?
Can I Claim Milage For An Electric Car?
Where an individual is charging their fully electric car at home they can submit mileage claims to reclaim the charging costs for business journeys (by reminder business journeys do not include commuting to and from the office, the individual would need to be visiting customers and/or suppliers etc).
HMRC Electric Car Milage Rates
The current and previous HMRC advisory rates for fully electric company cars are as follows:
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Date
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Electric Car Mileage Rate
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Up to 1 December 2021
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4p per mile
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1 December 2021 to 30 November 2022
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5p per mile
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|
1 December 2022 to 28 February 2023
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8p per mile
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From 1 March 2023
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9p per mile
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If the company were to reimburse the cost of electricity for charging the car at home there would be a benefit in kind that would need to be declared on a P11D because the charge would potentially have both private and business use attached and so we don’t usually recommend doing that.
Otherwise, where the company pays for the car to be charged either at the office premises or at a commercial charge point no benefit in kind arises on the cost and so the individual can charge her car using the company card in both of these scenarios.
If the fully electric car is owned privately by the individual then the usual approved mileage rates of 45p for the first 10,000 miles and 25p for any miles thereafter in any given tax year can be used when reclaiming the cost of business mileage.
Need more help understanding tax legislation or company benefits? Get in touch with our Leeds Accounting team today.