And Its Smith Posted February 14, 2023 Report Share Posted February 14, 2023 Hoping someone can help a confused man! I’m starting a new job next month and rather than supply a company car they bump up my salary by X amount to cover the cost of a car myself. My query is if I spend say £400 per month on leasing an electric car and I am driving 1200 business miles per month then the total cost of the car would be covered claiming 45p per mile. It seems that I can claim 45p per mile for an electric car or a diesel/petrol car despite electric being a lot cheaper to run…..seems too good to be true…am I being thick?! Quote Link to comment Share on other sites More sharing options...
And Its Smith Posted February 14, 2023 Author Report Share Posted February 14, 2023 Lock this down…it’s 8p per mile! Quote Link to comment Share on other sites More sharing options...
TonyTonyTony Posted February 14, 2023 Report Share Posted February 14, 2023 Your company will pay a mileage rate to cover business miles- you can claim the difference from that and the 45p during your tax return. I do about 10K business miles and get paid 18 pence, so i reclaim 45-18 x 10K from the taxman during self assessment. It’s never been challenged. I suspect the mileage rates on electric are very different however. 1 Quote Link to comment Share on other sites More sharing options...
Open End Numb Legs Posted February 14, 2023 Report Share Posted February 14, 2023 I had a few colleagues switch to electric a couple of years ago but recently they have been telling me that the maths have changed and electric is no longer the cheapest option. I don't have any details, sorry, but I suggest you look into it. Might depend on your home energy circumstances and whether you can charge for free anywhere. My colleagues were effectively forced into electric company cars by company policies which isn't the situation you are in. 1 Quote Link to comment Share on other sites More sharing options...
cidercity1987 Posted February 15, 2023 Report Share Posted February 15, 2023 20 hours ago, And Its Smith said: Hoping someone can help a confused man! I’m starting a new job next month and rather than supply a company car they bump up my salary by X amount to cover the cost of a car myself. My query is if I spend say £400 per month on leasing an electric car and I am driving 1200 business miles per month then the total cost of the car would be covered claiming 45p per mile. It seems that I can claim 45p per mile for an electric car or a diesel/petrol car despite electric being a lot cheaper to run…..seems too good to be true…am I being thick?! Far from being an expert but I believe the correct rate is 45p per mile for business usage of a personal car. This applies whether its electric or diesel/petrol, which used to be great for electric car owners but as others have said the cost of running an electric car seems similar to diesel/petrol at the moment. The electricity reimbursement for business usage of a company car is 8p per mile as you have said, but you don't have a company car. Perhaps your employer will only pay 8p per mile as they have increased your salary for you to purchase the car. 1 Quote Link to comment Share on other sites More sharing options...
And Its Smith Posted February 15, 2023 Author Report Share Posted February 15, 2023 3 hours ago, cidercity1987 said: Far from being an expert but I believe the correct rate is 45p per mile for business usage of a personal car. This applies whether its electric or diesel/petrol, which used to be great for electric car owners but as others have said the cost of running an electric car seems similar to diesel/petrol at the moment. The electricity reimbursement for business usage of a company car is 8p per mile as you have said, but you don't have a company car. Perhaps your employer will only pay 8p per mile as they have increased your salary for you to purchase the car. Thank you. That’s really helpful. Quote Link to comment Share on other sites More sharing options...
Ska Junkie Posted February 15, 2023 Report Share Posted February 15, 2023 45p per business mile up to 10000 miles PA then 29p per mile BUT you can claim the 16p difference from the HMRC. I'm not sure this applies to pure electric cars though as I drive my own hybrid. I would suggest checking on expected daily miles as the lease price does go up with mileage plus you don't want to be stranded 10 miles from home needing a charge which is what happened to me when I tried a full electric car for a few days, hence the hybrid. The published range is an 'up to' figure and I didn't get anywhere near the quoted range. 1 Quote Link to comment Share on other sites More sharing options...
Frenchay Red Posted February 16, 2023 Report Share Posted February 16, 2023 There is also a 5p per mile rate for business passengers. I help my son with his tax return, he's a chippy and has sometimes taken a labourer or apprentice with him to help on some jobs, and submitted such a claim. Quote Link to comment Share on other sites More sharing options...
cidercity1987 Posted February 16, 2023 Report Share Posted February 16, 2023 13 hours ago, Ska Junkie said: 45p per business mile up to 10000 miles PA then 29p per mile BUT you can claim the 16p difference from the HMRC. I'm not sure this applies to pure electric cars though as I drive my own hybrid. I would suggest checking on expected daily miles as the lease price does go up with mileage plus you don't want to be stranded 10 miles from home needing a charge which is what happened to me when I tried a full electric car for a few days, hence the hybrid. The published range is an 'up to' figure and I didn't get anywhere near the quoted range. The first paragraph is not correct BTW, just in case anyone tries it with HMRC. 45p per mile for first 10,000 miles then 25p per mile with no extra reclaim from HMRC Quote Link to comment Share on other sites More sharing options...
Ska Junkie Posted February 16, 2023 Report Share Posted February 16, 2023 1 hour ago, cidercity1987 said: The first paragraph is not correct BTW, just in case anyone tries it with HMRC. 45p per mile for first 10,000 miles then 25p per mile with no extra reclaim from HMRC Has that changed recently then CC as I claimed it last year and was paid? Quote Link to comment Share on other sites More sharing options...
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