Tax Relief on Home Charging of PHEV
Discussion
Afternoon All,
We're in the process of replacing one of our Directors cars and are looking at the Outlander PHEV. We've done some research into the costings and benefits of this decision but one point was raised which i can't find an answer for and was hoping someone on this forum might be able to help.
The Director in question has a bit of a chip on his shoulder about paying tax and asked whether or not he would receive any tax relief relating to the cost of the electricity used to charge his car whilst at home.
It's not a deal breaker but more of a "what can i get over HMRC".
Does anyone have a definitive answer for this? In essence, whilst he's paying the BIK on the fuel used, he would be also contributing to the "fuelling" of the vehicle so i can see his point of view.
Any advice on this would be greatly appreciated.
We're in the process of replacing one of our Directors cars and are looking at the Outlander PHEV. We've done some research into the costings and benefits of this decision but one point was raised which i can't find an answer for and was hoping someone on this forum might be able to help.
The Director in question has a bit of a chip on his shoulder about paying tax and asked whether or not he would receive any tax relief relating to the cost of the electricity used to charge his car whilst at home.
It's not a deal breaker but more of a "what can i get over HMRC".
Does anyone have a definitive answer for this? In essence, whilst he's paying the BIK on the fuel used, he would be also contributing to the "fuelling" of the vehicle so i can see his point of view.
Any advice on this would be greatly appreciated.
A simpler solution maybe for him to install a charger at the workplace and then it is a company expense and not his personal taxed money.
Apologies in advance if you have this covered already, I do not know of any specific costs that you could claim for home use other then the ubiquitous Using your home as part of your business stuff.
Apologies in advance if you have this covered already, I do not know of any specific costs that you could claim for home use other then the ubiquitous Using your home as part of your business stuff.
My annual accounts are being done at the moment. The home chargers installed in the grant scheme have a separate meter on them. I've kept a log of business miles and know the average miles / kWh of the car is 3.6. So I've suggested posting an expense claim for electricity of around £150 based on the business use mileage. Will let you know if the accountants agree.
That's for just over 2 months.. as a high mileage user my electric bill has tripled. But my petrol bill has been reduced to 0. So I'm about £1,500 a year better off ;-) that doesn't include any free public charging or work place charging I get either.
Note electric only has 5% VAT so there's not much tax to be saved.
[edit]
Take a look at the i3 REX- your first 80 miles per day is 2p/mile. Charge at rapids and you can carry on for free. An outlander you are stuck at 20 miles per charge (not 30 in the brochure). Depends on intended usage and luggage/seating requirements.
Are you aware of the First year writing down allowance if buying instead of leasing? You'll need an accountant to check/explain, but if I understand correctly you can write off £2,000 of corporation tax for every £10k you spend on the car. Just bear in mind when you sell - you'll have to pay cop tax on the residual value which gets added back into profits. But assume you buy for £30k and sell for £10k after 3 years, You'll save another £4k off the list price. Making it cheaper than an equivalent specced 120d!
Spreadsheets are required!
That's for just over 2 months.. as a high mileage user my electric bill has tripled. But my petrol bill has been reduced to 0. So I'm about £1,500 a year better off ;-) that doesn't include any free public charging or work place charging I get either.
Note electric only has 5% VAT so there's not much tax to be saved.
[edit]
Take a look at the i3 REX- your first 80 miles per day is 2p/mile. Charge at rapids and you can carry on for free. An outlander you are stuck at 20 miles per charge (not 30 in the brochure). Depends on intended usage and luggage/seating requirements.
Are you aware of the First year writing down allowance if buying instead of leasing? You'll need an accountant to check/explain, but if I understand correctly you can write off £2,000 of corporation tax for every £10k you spend on the car. Just bear in mind when you sell - you'll have to pay cop tax on the residual value which gets added back into profits. But assume you buy for £30k and sell for £10k after 3 years, You'll save another £4k off the list price. Making it cheaper than an equivalent specced 120d!
Spreadsheets are required!
Edited by TransverseTight on Wednesday 22 April 02:34
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