Claiming Tax Relief on money spent on electricity for business trips in company car

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  • 00ec25
    00ec25 Posts: 9,123
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    singhini wrote: »
    So is it £0.68p or £1.78p

    Its bonkers, its not been thought out properly by the government.


    Ive concluded its best i dont bother to charge the car, that way i havent spent any of my own money and thus theres nothing to claim (also if there was something to claim it wouldnt be the whole amount but just the tax relief i.e. 40% of the amount).
    the claim is for tax relief, ie a refund of the tax you have paid on the cost you incurred.
    There are no circumstances where the govt reimburses you the full cost. That would be bonkers, why should I as a taxpayer be expected to fund your expenses in full?

    as a 40% taxpayer I am sure you can afford to forego the 27p per day you would get in tax relief.

    rather than blaming others why don't you come up with a solution as to how you can irrefutably evidence that you incurred electricity costs to charge the car for business purposes only? There is the bonkers bit, you can't, so again wide open to fraud from false claims.
  • unforeseen
    unforeseen Posts: 7,271
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    Run the socket that you use to charge it off a sub meter. Your argument would then be that any recorded use between Sunday night and Thursday night was for business purposes.

    Downside is that you will probably never get to a break even point between cost of install and tax relief received.
  • singhini
    singhini Posts: 553
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    00ec25 wrote: »
    the claim is for tax relief, ie a refund of the tax you have paid on the cost you incurred.
    There are no circumstances where the govt reimburses you the full cost. That would be bonkers, why should I as a taxpayer be expected to fund your expenses in full?

    as a 40% taxpayer I am sure you can afford to forego the 27p per day you would get in tax relief.

    rather than blaming others why don't you come up with a solution as to how you can irrefutably evidence that you incurred electricity costs to charge the car for business purposes only? There is the bonkers bit, you can't, so again wide open to fraud from false claims.



    I totally agree with you - its open to fraud (so the government should not do it. Their bonkers for not recognising that its open to abuse but yet they are allowing people to do this and openly advertising it on their website).


    Again I agree with you and recognise that its only the tax relief and that HMRC are not going to pay me to do my employers work (exactly the same reason why they only reimburse you the tax relief on any mileage paid below the agreed 45p on the first 10,000 miles). I never said it was bonkers that HMRC don't reimburse me the whole amount (I just simply stated a fact)


    I'm not blaming anyone, your very much mistaken. All I did was create a thread to ask how do I go about calculating how much money I have spent charging the car. Also if you check post #11 i openly admit its impossible to distinguish if its business mileage done with fuel or with electricity.


    How do you think the government should oversee this initiative inlight of the potential for abuse to occur
  • singhini
    singhini Posts: 553
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    unforeseen wrote: »
    Run the socket that you use to charge it off a sub meter. Your argument would then be that any recorded use between Sunday night and Thursday night was for business purposes.

    Downside is that you will probably never get to a break even point between cost of install and tax relief received.



    That's certainly one way to do it and thanks for your comment.


    I going to await a response form HMRC but will be highlighting I think its open to abuse.
  • Keep_pedalling
    Keep_pedalling Posts: 16,438
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    The problem is the system your company use. They theoretically pay all your fuel costs, so they should also be paying for the electricity you use at home to charge your car, as this reduces their fuel costs. I used to do a similar job, but I paid for the fuel, and claimed my business milage back from the company, a system that would work well with a plug in hybrid.
  • sheramber
    sheramber Posts: 18,862
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    You are driving an electric car. Yu are driving a hybrid which is dealt with in the link
    https://www.gov.uk/government/publications/advisory-fuel-rates/advisory-fuel-rates-from-1-march-2016

    Hybrid cars are treated as either petrol or diesel cars for this purpose
  • 00ec25
    00ec25 Posts: 9,123
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    edited 17 October 2017 at 8:04PM
    singhini wrote: »
    openly advertising it on their website).
    openly advertising what?
    you state that you reimburse your company for private fuel but you have not explained how you calculate that given you also state that "all" your journeys are business related and there is no private commuting undertaken

    your solution would be to return the fuel card to your company, and claim your business trips at the approved mileage rate instead.

    Then, as openly advertised on the govt website, you would be reimbursed for your total fuel costs at the approved rate because a hybrid car is treated like a petrol or diesel car and is reimbursed at the rate applicable to its engine type. That way it won't matter if you do the first 20 miles on electric or fuel, you will be paid for the miles done and, as per the link you yourself posted, you could get a minimum of £2.20 for 20 miles at the lowest petrol rate which patently more than covers your estimated electricity costs.

    that is the way the system should work

    it is the incorrect way that your company ois processing your position which is causing you to be out of pocket for the electricity since the company is not paying your for the 20 miles you drive on electric because you are not claiming those miles as you are instead only claiming the net business related fuel expenditure on the card. Go back to claiming the old fashioned way via a mileage log and save your company having to process a fuel card and adjust it for your private payments.
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