UK Company Car - E Charging cards on company account?

[RGVDave]

Morning, not sure if this has been discussed.

So the car looks like its ready to collect tomorrow ( I am surprised how excited I am !!).

Its been a long time since I had a company car and when I did, if you took the personal mileage covered option you paid an additional BIK tax.

Does anyone know if this is the same for an electric company car if I use the company credit card as the payment option whilst out and about?

Just signed up for a couple of charging apps at the weekend and dropped the company car card in for payment.

Thanks
David

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[Midlifecrisis]

I think this would be the same as the company buying your petrol. Probably gets complicated and almost inevitably there will be more tax but you might need to ask an accountant for a definitive answer

 

[RGVDave]

I think this would be the same as the company buying your petrol. Probably gets complicated and almost inevitably there will be more tax but you might need to ask an accountant for a definitive answer

Initial checks from my Accountant were that they couldn't find any info on an additional BIK for e car charging through the company. so at this moment I am going to just carry on and do it..

Will keep looking, maybe they haven't had time to close that loophole yet.

David

 

[YLA G]

We use chargemap cards..

 

[TaycanHero]

Great question. I had to look into this.

For home charging:

• Advisory Electric Rate is 5p per mile. Most home electric tariffs charge 5p per kWH, so you should easily cover your charging costs using AER without any further accounting needed. You can reimburse your electric usage instead, but that would then attract BIK.

For public charging:

• Where the employer pays, no tax or BIK is applicable.

This article further explains:
Company car drivers whose private fuel is paid for by their employer will also pay an additional Income Tax charge based on the deemed value of this benefit. This charge is calculated by applying the same percentage rate used for the car benefit itself to a fixed amount, which is £24,600 for 2021-22. In the example above for the car with CO2 emissions of 145g/km this will be £8,118, but for a wholly electric car with zero emissions may be no benefit at all.

 

[RGVDave]

Great question. I had to look into this.

For home charging:

• Advisory Electric Rate is 5p per mile. Most home electric tariffs charge 5p per kWH, so you should easily cover your charging costs using AER without any further accounting needed. You can reimburse your electric usage instead, but that would then attract BIK.

For public charging:

• Where the employer pays, no tax or BIK is applicable.

This article further explains:
Company car drivers whose private fuel is paid for by their employer will also pay an additional Income Tax charge based on the deemed value of this benefit. This charge is calculated by applying the same percentage rate used for the car benefit itself to a fixed amount, which is £24,600 for 2021-22. In the example above for the car with CO2 emissions of 145g/km this will be £8,118, but for a wholly electric car with zero emissions may be no benefit at all.

That is roughly what I heard, maybe no charge.. gonna run with it and see what happens, they will at some point get a cost to us, but I don't think they have this sorted fully yet.

 

[sbarker108]

Morning, not sure if this has been discussed.

So the car looks like its ready to collect tomorrow ( I am surprised how excited I am !!).

Its been a long time since I had a company car and when I did, if you took the personal mileage covered option you paid an additional BIK tax.

Does anyone know if this is the same for an electric company car if I use the company credit card as the payment option whilst out and about?

Just signed up for a couple of charging apps at the weekend and dropped the company car card in for payment.

Thanks
David

I was up north yesterday picking the dog up from my mothers, Ingleby Barwick, around 5pm and spotted a white and then Grey Turbo S, don't suppose either was you?

Assume you got this from the dealership over in Stockton?

I have a ST Turbo S on order, should I ever get it. Live in Sheffield nowadays.

 

[RGVDave]

I was up north yesterday picking the dog up from my mothers, Ingleby Barwick, around 5pm and spotted a white and then Grey Turbo S, don't suppose either was you?

Assume you got this from the dealership over in Stockton?

I have a ST Turbo S on order, should I ever get it. Live in Sheffield nowadays.

Ours is a white TS, but think it was tucked up the garage yesterday all day, unless my wife was out and about. yeah bought from Stockton, who have been really good.

 

[Gogs]

Company pays some of mine through expenses. Not all but some! I’m a business owner…

 

[RGVDave]

I have stuck the business card details on to all the ev apps, so basically work is paying and we can see how we go ( I do own this business, but just thought about the P11D situation).

 

[Seacow]

I think that you would declare the amount spend through P11D and therefore pay tax on it at your top rate

 

[LLA53]

There is zero BIK for private mileage on EV cars

 

[ineedanoriginal]

There is zero BIK for private mileage on EV cars

It's 2% but that's still a very low number in comparison to an ICE vehicle.

 

[TaycanHero]

It's 2% but that's still a very low number in comparison to an ICE vehicle.

I thought BIK was 0 where you charge using public charges?

The BIK is applicable only if you try to claim the charging as a personal expense e.g. home charging.

 

[Gnasher]

It's 2% but that's still a very low number in comparison to an ICE vehicle.

2% is on the car not the electricity.

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