Company Car Fuel Benfit and Ultra low emission vehicles

Rubics

I am due to get a company car and am looking at Ultra low emission vehicle the Mitsubishi Outlander PHEV which I intended to use for both business and private use so I will incur tax for benefit in kind for both the car and fuel.

The Mitsubishi Outlander PHEV (and similar ultra low emission vehicles) add a new dimension in that I will be directly contributing to the fuel used by the car as I intend on charging the vehicle at my home address.

The hybrid technology in the Outlander PHEV, means that the first 30 miles of any journey from my home address will be directly paid for by myself (assuming I have charged the car to full capacity). This means on my average round trip for business (300 miles) I will have contributed to 10% of the fuel miles to a business trip, which is the ‘best case scenario’ as the shorter the trip the greater the contribution. Many of the private journeys from my home address will not even exceed 30 miles.

So what is the fuel benefit, when the company car is a Mitsubishi Outlander PHEV and the employee charges the car at home at their cost, and how can the cost of charging the vehicle be recovered or tax relief be provided?

purdyoaten

Aside from the contribution by way of electricity cost, I am fairly sure that the car fuel benefit remains an 'all or nothing charge' - any private fuel whatsoever equals full fuel benefit charge.

The fuel benefit charge is only reduced in accordance with paragraph 13.5 or 13.9 if the employee makes good the cost of all the fuel provided for private motoring. If the employee fails to fully make good in this way, the fuel benefit charge as calculated under paragraphs 13.6 to 13.9 applies without any reduction for the repayments made by the employee.

zygurat789

See 5.4 & 5.5 of the link below

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/315604/factsheet-tax-implications.pdf

Rubics

Thanks for the prompt and informative replies.

purdyoaten

zygurat789 wrote: »

See 5.4 & 5.5 of the link below

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/315604/factsheet-tax-implications.pdf

Good link - can HMRC be convinced that private mileage was only ever incurred when using electricity as opposed to petrol?

It seems that the reference only excludes charging at the company premises from the fuel benefit unless I am mistaken?