HMRC and home vehicle charging

[Colin L]

Any company car drivers with a hybrid out there?

Next week a Volvo XC60 hybrid arrives as my company vehicle and I'm looking at options to instal a home charger. The company's fleet manager says there are issues with claiming back the cost of domestic electricity used for the vehicle. He suggests HMRC only accept a completely separate bill from the power provider as valid back-up for an expense claim. HR are looking into it.

Scottish Power chargers have an app that details charging power used, as does the Volvo app, and I thought this would be acceptable.

Does anyone have experience of what their company (and thereby HMRC) will accept?

Thanks in advance.

 

[cutting42]

Any company car drivers with a hybrid out there?

Next week a Volvo XC60 hybrid arrives as my company vehicle and I'm looking at options to instal a home charger. The company's fleet manager says there are issues with claiming back the cost of domestic electricity used for the vehicle. He suggests HMRC only accept a completely separate bill from the power provider as valid back-up for an expense claim. HR are looking into it.

Scottish Power chargers have an app that details charging power used, as does the Volvo app, and I thought this would be acceptable.

Does anyone have experience of what their company (and thereby HMRC) will accept?

Thanks in advance.

I have just installed a charger for an imminently arriving Tesla. My company will not pay any electricity costs for me. I have to claim per mile at the gov rate of 4p per mile.

 

[JensenHealey]

Interesting question - I wonder if HMRC will have to do some catching up on the 'actualities' of the new world. Looking from the other side of the fence (always a useful view), if I was a tax officer I would want to know how I can be sure that the electricity consumed by the car has been used solely for business use...

 

[cutting42]

Interesting question - I wonder if HMRC will have to do some catching up on the 'actualities' of the new world. Looking from the other side of the fence (always a useful view), if I was a tax officer I would want to know how I can be sure that the electricity consumed by the car has been used solely for business use...

You can't which is why mileage use is the preferred method I believe. My expense reports have to detail each journey.

 

[Chops54]

I’ll bet the govt have thought about having domestic charging points metered so that fuel duty can be applied

 

[Colin L]

You can't which is why mileage use is the preferred method I believe. My expense reports have to detail each journey.

As do mine, and the non-business miles are charged to me at 11p per mile.
The issue is how is it handled with a hybrid, which uses petrol and electrickery.
The Volvo app is car-based and reports the power applied to the batteries, so to me, that should meet the requirement, but maybe not.

 

[cutting42]

As do mine, and the non-business miles are charged to me at 11p per mile.
The issue is how is it handled with a hybrid, which uses petrol and electrickery.
The Volvo app is car-based and reports the power applied to the batteries, so to me, that should meet the requirement, but maybe not.

I think the hybrids are treated at normal diesel or petrol rates so something similar to what you get now would seem logical.

 

[timH]

Could you install a separate meter in the supply to the charger and see if they would accept readings from that

 

[Colin L]

I think the hybrids are treated at normal diesel or petrol rates so something similar to what you get now would seem logical.

I claim the cost of petrol and identify all business miles. That which is not business is defined as personal and I am charged 11p / mile for those. The issue is what is an acceptable statement of any power used to charge the batteries.

Could you install a separate meter in the supply to the charger and see if they would accept readings from that

I asked SSE but they said that would mean a new-metered account at the house. Could be speedy. Apparently HMRC won't accept a "non-official" meter reading.

Given the government is incentivising the use of hybrids and EV's you'd think they would make this a bit easier.

 

[Ponty]

It should be really easy. Your employer pays you an allowance per mile. Presumably they don’t currently install their own petrol or diesel pump at your home. Fuel is fuel, whether it be petrol, diesel or electricity. You buy it, use it and the mileage rate covers it.

 

[cutting42]

I claim the cost of petrol and identify all business miles. That which is not business is defined as personal and I am charged 11p / mile for those. The issue is what is an acceptable statement of any power used to charge the batteries.

Your way is kind of backwards to how we do it and more complicated than it needs to be I think. We have two ways to manage paying for fuel which I understood were defined by the government; clearly there are more options.

1/ Fuel card, the company pays for all fuel purchases and you are taxed (massively) for the use of free fuel in your own time. This only works if you do lots (12k+) private miles per year

2/ You pay all fuel costs and bill the company at 12p a mile or thereabouts for business mileage depending on the car engine size/fuel type. This works well as regardless how you fuel your car (electricity or Petrol) you will get the same amount of money back, in fact as electricity is cheaper than petrol, you will gain slightly.

 

[Mike Reed]

Fuel is fuel, whether it be petrol, diesel or electricity. You buy it, use it and the mileage rate covers it.

Yes, this is a logical conclusion. For a number of years now HMRC has allowed 45p a mile for business use but maybe they've introduced new tariffs for electric vehicles used for business ? I doubt that as electric car use is still tiny.

 

[Colin L]

Your way is kind of backwards to how we do it and more complicated than it needs to be I think. We have two ways to manage paying for fuel which I understood were defined by the government; clearly there are more options.

1/ Fuel card, the company pays for all fuel purchases and you are taxed (massively) for the use of free fuel in your own time. This only works if you do lots (12k+) private miles per year

2/ You pay all fuel costs and bill the company at 12p a mile or thereabouts for business mileage depending on the car engine size/fuel type. This works well as regardless how you fuel your car (electricity or Petrol) you will get the same amount of money back, in fact as electricity is cheaper than petrol, you will gain slightly.

That’s true, but unfortunately not the way my company does it.

 

[cutting42]

That’s true, but unfortunately not the way my company does it.

I hear you, company policy is a killer, took me nearly 2 years to get them to agree to electric cars.

PS, love the user name tag. I have many favourite Banks ship names, currently with Mistake Not topping it.