Charging company EVs at home - HMRC guidance

[ladymuck]

Just noticed this in the latest HMRC Employer bulletin:

https://www.gov.uk/government/public...loyer-bulletin

Maybe worth looking into if you've bought an EV through your company.

Electric charging of company cars and vans at residential properties

HMRC has published amended guidance on EIM23900 about a change in interpretation regarding home charging of electric company cars. Section 239 ITEPA 2003 provides an exemption on payments and benefits provided in connection with company cars and vans . This legislative provision therefore exempts aspects such as vehicle repairs, insurance, and road tax.

HMRC previously maintained that the reimbursement of costs in relation to charging a company car or van at a residential property was not caught by this exemption.

Following a review of our position, HMRC now accepts reimbursing part of a domestic energy bill, which is used to charge a company car or van, will fall within the exemption provided by section 239 ITEPA 2003.

This means that no separate charge to tax under the benefits code will arise where an employer reimburses the employee for the cost of electricity to charge their company car or van at home. The exemption will however only apply providing it can be demonstrated that the electricity was used to charge the company car or van.  Employers will need to make sure that any reimbursement made towards the cost of electricity relates solely to the charging of their company car or van.

[Keanu2020]

Bought a plug in Hybrid 4 months ago, wondered why accountant had changed position on VAT return from given advice at time of purchase.

[northernladuk]

Bought a plug in Hybrid 4 months ago, wondered why accountant had changed position on VAT return from given advice at time of purchase.

Are you sure a hybrid is considered when it talks about EV in this legislation. It isn't in other legislation so worth checking and not assuming an EV policy includes hybrid?

[Paddy]

Electric charging cost more than double that of Diesel.

[FIERCE TANK BATTLE]

Electric charging cost more than double that of Diesel.

lol what complete nonsense

[WTFH]

lol what complete nonsense

It's based on the "every day typical drive that a commuter does" and proves that there's no way a good electric car is an option for anyone.

...or maybe it's a tad biased by luddites.

[eek]

It's based on the "every day typical drive that a commuter does" and proves that there's no way a good electric car is an option for anyone.

...or maybe it's a tad biased by luddites.

Yep - if I charge an EV up at 90p per kwh the maths doesn't work.

If however you mainly charge it up at home at 7.5p per kwh (Octopus Intelligent) the math really does add up - that's £7.50 for 250 miles...

[GoForIT]

Trouble is how to back date this so that you can put a claim through your company for the past couple of years where you did not necessarily keep records for each time you charged your car at home. I wonder if knowing the car had eg covered 10,000 miles in a period could you estimate the kWh of electricity needed and then deduct from that the charging where you have records at commercial charge points and then make an expense payment from your company for the balance of the kWh using the applicable unit costs you were paying over that period? This could be a fairly substantial amount of money that the company may owe you.

[WTFH]

Trouble is how to back date this so that you can put a claim through your company for the past couple of years where you did not necessarily keep records for each time you charged your car at home. I wonder if knowing the car had eg covered 10,000 miles in a period could you estimate the kWh of electricity needed and then deduct from that the charging where you have records at commercial charge points and then make an expense payment from your company for the balance of the kWh using the applicable unit costs you were paying over that period? This could be a fairly substantial amount of money that the company may owe you.

Your accountant will be able to advise you on what you can/can't claim based on what you've recorded.