Charging Electric and Hybrid cars at work

JP_77

Hi Everyone
We recently installed electric charge points at work as we have a number of employees who now have electric or hybrid vehicles. Some are company cars, some are personal vehicles. When our employees are charging their vehicles at work should  the company be charging them for the electricity as this could constitute a BIK? As usual with the gov.uk website the information I can find is a little confusing!
Any help greatly appreciated.
Thanks
JP

Grumpy_chap

There is no BIK for electricity to charge an EV as "electricity is not fuel" - eek

If the car is hybrid and the employer provides fuel then it is subject to the BIK fuel scale charge as per any ICE vehicle.  I understand this also applies if it is electricity for PHEV, but not sure if it is only electricity for the PHEV but not petrol / diesel - that's all a bit complex for me and ask an Accountant.

Whether the company should charge employees for the electricity is then a commercial decision for the business to take more so than a taxation matter.

What does your company's Accountant say?

BOWFER

This is a 'problem' we're talking about at work.
It's obvious that to avoid hard feeling amongst employees, those using electricity here will have to be seen to pay something.
How we're doing it is still to be decided.

JP_77

Grumpy_chap said:

There is no BIK for electricity to charge an EV as "electricity is not fuel" - eek

If the car is hybrid and the employer provides fuel then it is subject to the BIK fuel scale charge as per any ICE vehicle.  I understand this also applies if it is electricity for PHEV, but not sure if it is only electricity for the PHEV but not petrol / diesel - that's all a bit complex for me and ask an Accountant.

Whether the company should charge employees for the electricity is then a commercial decision for the business to take more so than a taxation matter.

What does your company's Accountant say?

From the information I've found so far it seems it's one rule for an electric car, one for a hybrid, another for a company car and different again if it's a personal vehicle! I found some legislation if you google (can't post the link) 'section 237a into chapter 3 part 4 itepa' on the gov.uk website but it's just confused me further as my interpretation could be different to someone else's.

Grumpy_chap

JP_77 said:

From the information I've found so far it seems it's one rule for an electric car, one for a hybrid, another for a company car and different again if it's a personal vehicle! 

You are correct that there are different treatments for taxation of company-provided energy in terms of BIK depending upon EV, ICE (including hybrid) and company vehicle or employee's vehicle.
Because it is a complex area with many options is why I suggested to take advice from your Accountant.

BOWFER said:

This is a 'problem' we're talking about at work.
It's obvious that to avoid hard feeling amongst employees, those using electricity here will have to be seen to pay something.
How we're doing it is still to be decided.

Up until pre-lockdown, I was working at a site where they installed two EV charge points and the charging structure was probably a disincentive to choose an EV.  A   membership fee plus 32 pence per kWh plus penalty charge is the car is left once charged.  I understand why the penalty is there, but you can't keep leaving meetings to move the car.  At that cost point, it is more expensive to fuel than an ICE.  Hopefully your workplace won't make the same mistake.

NaughtiusMaximus

Grumpy_chap said:

BOWFER said:

This is a 'problem' we're talking about at work.
It's obvious that to avoid hard feeling amongst employees, those using electricity here will have to be seen to pay something.
How we're doing it is still to be decided.

Up until pre-lockdown, I was working at a site where they installed two EV charge points and the charging structure was probably a disincentive to choose an EV.  A   membership fee plus 32 pence per kWh plus penalty charge is the car is left once charged.  I understand why the penalty is there, but you can't keep leaving meetings to move the car.  At that cost point, it is more expensive to fuel than an ICE.  Hopefully your workplace won't make the same mistake.

There is some logic to that decision, this would ensure only people who actually NEED to charge their car would use the charger whereas is there was no fee or only a nominal fee everyone with an electric car would try to use it, a bit of a problem if you have 2 chargers but say 10 staff with electric cars. 

DrEskimo

NaughtiusMaximus said:

Grumpy_chap said:

BOWFER said:

This is a 'problem' we're talking about at work.
It's obvious that to avoid hard feeling amongst employees, those using electricity here will have to be seen to pay something.
How we're doing it is still to be decided.

Up until pre-lockdown, I was working at a site where they installed two EV charge points and the charging structure was probably a disincentive to choose an EV.  A   membership fee plus 32 pence per kWh plus penalty charge is the car is left once charged.  I understand why the penalty is there, but you can't keep leaving meetings to move the car.  At that cost point, it is more expensive to fuel than an ICE.  Hopefully your workplace won't make the same mistake.

There is some logic to that decision, this would ensure only people who actually NEED to charge their car would use the charger whereas is there was no fee or only a nominal fee everyone with an electric car would try to use it, a bit of a problem if you have 2 chargers but say 10 staff with electric cars. 

Indeed.

For me I couldn't run an EV without using the work charger, so was happy to pay £0.25/kWh. Sill cheaper than petrol.
Now I can charge from home I avoid them, as I can charge it at 1/5th of the price.

That being said, a membership fee + £0.32/kWh seems a bit too high... @Grumpy_chap what is the cost of the membership fee?

Sandtree

According to EDF there is no BIK to pay as long as it is a dedicated charging point, open to all staff at the location and is on or very close to the location.  Employers can also get grants to have them installed.

Must admit, hadnt even considered BIK being a consideration for syphoning off work electricity... must stop charging my iPhone at work!

BOWFER

32p to charge at work is ridiculous.
Have they set this tariff themselves and making a profit from it, or just invited an electricity supplier to install a 'pump' on their premises and it's the electricity company pocketing it?
A bit like vending machine companies, who will install machines at your work for free - them making all the money from the product.

Grumpy_chap

BOWFER said:

32p to charge at work is ridiculous.
Have they set this tariff themselves and making a profit from it, or just invited an electricity supplier to install a 'pump' on their premises and it's the electricity company pocketing it?

This.

Apparently, if the employer resells electricity they cannot charge more than cost.

BOWFER

Grumpy_chap said:

BOWFER said:

32p to charge at work is ridiculous.
Have they set this tariff themselves and making a profit from it, or just invited an electricity supplier to install a 'pump' on their premises and it's the electricity company pocketing it?

This.

Apparently, if the employer resells electricity they cannot charge more than cost.

Ah ok
That's not what we intend to do, we intend to install our own chargers.
TBH although I'm the first person here to have an EV, I think I'll be the last to use them.
I don't travel far and have my own home podpoint.