Massive cut to elec business mileage rates! 4p/mile

Discussion of the 'Switched on Scotland' and 'e-cosse' program in Scotland
noahs-dad
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Joined: Wed Aug 06, 2014 5:36 pm
Location: Dunbar, East Lothian

Massive cut to elec business mileage rates! 4p/mile

Postby noahs-dad » Mon Nov 05, 2018 7:52 pm

WOW this is a shocker. Someone at work today told me about the new 4p per mile mileage business rate for electric cars in the budget, and that it was to encourage Council's to get employees to drive elec. cars or provide elec fleet cars.

I actually didn't believe it could be true, until I came home and googled "electric car 4pm mileage rate", and there is any number of business sources reporting this. Here is one such source: https://www.businessmotoring.co.uk/elec ... age-rates/

To be fair the 45p/mile rate that elec cars got, same as petrol cars, was rather generous. But 4p/mile is ridiculously low? There is still wear and tear, the usual tyres, and brake pads, steering, a chassis that can get rusty, and other bits and pieces, not to mention the battery, and high purchase price for anything useful range wise.

About 20p - 22p would seem more reasonable?

Gordon
Posts: 8
Joined: Wed Mar 29, 2017 2:15 pm

Re: Massive cut to elec business mileage rates! 4p/mile

Postby Gordon » Tue Nov 06, 2018 9:51 am

The Advisory Fuel Rates which HMRC publish are to reimburse company car drivers for business fuel used in company owned cars. This new rate does NOT affect drivers of privately owned vehicles who use them for company business, they can still claim expenses based on HMRC's completely separate Mileage Allowance Payments rate which remains at 45p per mile for the first 10000 miles of business mileage a year, and 25p per mile thereafter.

So, if you are a private car driver using it for company use, you can still claim the old rate from the company. If the company owns a car and allows you to use it privately and you charge it at home, you can now be reimbursed for the electricity you used at 4p per mile. Making this a doubly good development HMRC does not treat electricity as a fuel for car fuel benefit purposes, so there are no tax implications if they company let's you use company electricity for personal driving.

roscoe
Posts: 163
Joined: Tue Mar 21, 2017 11:48 am

Re: Massive cut to elec business mileage rates! 4p/mile

Postby roscoe » Tue Nov 06, 2018 10:58 am

All sounds sensible to me.

What if private EV'er claims 45p but sneaks a wee boost of electricity on company premises ?
I presume tax man has no interest apart for maybe BIK ?

Gordon
Posts: 8
Joined: Wed Mar 29, 2017 2:15 pm

Re: Massive cut to elec business mileage rates! 4p/mile

Postby Gordon » Tue Nov 06, 2018 11:06 am

According to HMRC
You need to pay tax and National Insurance on the electricity used to charge the car
You must work out the cost of the electricity you paid for and report it to HMRC as a benefit.


That is via this tool https://www.gov.uk/expenses-and-benefit ... mpany-cars


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