Charging Electric and Hybrid cars at work

JP_77

Sandtree said:

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!

EDF are correct if the vehicle belongs to the employee..... (same with the iPhone!), the complications start when it's a company car. As a company we're not out to make a profit and in fact we'd be happy to pay as long as it doesn't fall foul of HMRC. We just want a one size fits all solution, but it doesn't look like we're going to get one. 

Grumpy_chap

There is no BIK either for EV charging whether the vehicle is company car or belongs to the employee.

Grumpy_chap

NaughtiusMaximus said:

Grumpy_chap said:

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. 

I understand the logic.  It is just from a practical perspective, you go to work to work and provide productive output for your employer.  Not to be worried about when you need to move your car and leave meetings to do so.

DrEskimo said:

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

I don't recall the membership fee - it was fairly nominal, so something like £20 or £30 per year.
Still, the kWh rate was too high and the penalty of leaving the car after charge full was extortionate.  £10 per half hour.
I did not, and still do not, have an EV, but was looking at whether it could be viable and assessing the eNiro (or equivalent range which could do my round trip commute) versus the MG ZS EV (which could not do the round trip commute) and I concluded needing to charge at work daily could be a challenge given the available infrastructure and cost.

JP_77

Grumpy_chap said:

There is no BIK either for EV charging whether the vehicle is company car or belongs to the employee.

Well I've now read 2 paragraph's on the same page ( see below from the gov.uk website) which contradict each other, so I'm even more confused now. I shall give the number at the bottom a call and report back.
FINANCE BILL
CLAUSE 2
Clause 2: Exemption for benefit in form of vehicle-battery charging at workplace
Summary
1. This clause introduces a new exemption to Chapter 3 of Part 4 of the Income Tax (Earnings and Pensions) Act 2003 (ITEPA) to encourage employers to provide charging facilities for all-electric and plug-in hybrid vehicles at or near the workplace. It removes any liability to income tax arising from the provision of charging facilities (including electricity) for individuals charging the batteries of vehicles other than taxable cars or vans at or near their workplace.
Details of the clause
2. Subsection (1) introduces new section 237A (Vehicle-battery charging) to ITEPA. Subsection 237A(1) provides that the exemption will apply where facilities for charging a vehicle’s battery are provided at or near an employee’s workplace.
3. New subsection 237A(1) also provides that the exemption applies if the employee is a passenger in a vehicle using the charging facilities.
4. New subsection 237A(2) provides that the charging facilities must be made available generally to the employer’s employees at that workplace. Where an employer has multiple workplace locations, they need not make charging facilities available at all of them.
5. New subsection 237A(3) sets out a number of definitions for the purposes of the section.
6. Subsection (2) provides that the exemption has effect from the start of the 2018-19 tax year onwards.
Background note
7. One of the current issues limiting the adoption of all-electric or plug-in hybrid vehicles by the general public is the worry about where they can be recharged. Many residential areas have limited charging facilities, especially where only on-street parking is available.
8. If an employer provides battery charging facilities (including electricity) for a vehicle which is not a taxable car or van, the employee is provided with a benefit in kind which is liable to income tax and NICs. Taxable cars and vans are exempt from any charge under separate provisions in ITEPA.
9. The government announced at Autumn Budget 2017 that they would introduce an exemption to remove any income tax or NICs liability for charging electric vehicles at work with effect from 6 April 2018. This supports Air Quality and Climate Change initiatives by incentivising the take-up of all-electric and plug-in hybrid vehicles. 
10. The legislation provides that the exemption can apply where facilities are made available “at or near the workplace”. The words “at or near the workplace” are not defined in the legislation. However, HM Revenue and Customs take the same approach as for section 237 (parking facilities), where the charging facilities made available are within a reasonable distance from the place of work having regard to the nature of the locality.
11. The exemption does not extend to the reimbursement by employers of costs incurred by individuals or the provision of charging facilities when recharging vehicles away from the workplace. Where a vehicle is used in the performance of the duties of the employment, approved mileage allowance payments and mileage allowance relief may apply.
12. If you have any questions about this change, or comments on the legislation, please contact Su McLean-Tooke on 03000 586404 (email: su.mclean-tooke@hmrc.gsi.gov.uk or employmentincome.policy@hmrc.gsi.gov.uk).

Grumpy_chap

That is entirely consistent with what I said:

Grumpy_chap said:

There is no BIK either for EV charging whether the vehicle is company car or belongs to the employee.

JP_77 said:

1. This clause removes any liability to income tax arising from the provision of charging facilities (including electricity) for individuals charging the batteries of vehicles other than taxable cars or vans at or near their workplace.

That means that if employer provides EV charging for the employee's vehicle, there is no BIK

JP_77 said:

8. Taxable cars and vans are exempt from any charge under separate provisions in ITEPA.

This means that taxable vehicles (i.e. company cars) are exempt anyway under other rules so do not need to be covered by the exemption under "this clause" so there is no BIK.

Really, you need to ask your Accountant, or ask in the Cutting Tax area of this forum.

Or, not worry and let the company management sort it all out.  You won't have any BIK liability for so long as the current rules remain in force.  The rules may change at any time the Government decide they need more money.

Here it is in simpler terms for the company car:
https://www.tesla.com/en_GB/support/incentives#chapter7

Here it is in simple terms for the employee's car (under the heading "General description of the measure":
https://www.gov.uk/government/publications/workplace-charging-for-all-electric-and-plug-in-hybrid-vehicles/workplace-charging-for-all-electric-and-plug-in-hybrid-vehicles

BOWFER

Grumpy_chap said:

I did not, and still do not, have an EV, but was looking at whether it could be viable and assessing the eNiro (or equivalent range which could do my round trip commute) versus the MG ZS EV (which could not do the round trip commute) and I concluded needing to charge at work daily could be a challenge given the available infrastructure and cost.

That must be quite the commute.
I find the 4 miles I do each way annoying enough.
(pre-empting anyone saying it, no I can't cycle it, or walk it, or use a bus)

Sandtree

JP_77 said:

Sandtree said:

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!

EDF are correct if the vehicle belongs to the employee..... (same with the iPhone!), the complications start when it's a company car. As a company we're not out to make a profit and in fact we'd be happy to pay as long as it doesn't fall foul of HMRC. We just want a one size fits all solution, but it doesn't look like we're going to get one. 

No, EDF explicitly stated it must be for company car owners and private car owners else the BIK exemptions dont apply. Obviously I'd be getting formal advice from a tax advisor not the EDF website but for the purposes of a general steer that appears to be their views.

JP_77

Well it seems the concensus is there is no BIK, which is good from both a company and employee point of view. As you say I'll check with our tax advisors but thanks for all your input.

born_again

We have chargers at work & I know many people that use them rather than use the charger at home (personal cars) as it is free... Why pay for something you can get for free. This is MSE after all.
No company cars, as they lease pool cars & non are EV.

So in OP's case. If they are happy to pay for the additional electric, nice bonus for employees. If not them company cars can charge for free, after all they belong to the company. Personal cars have to pay. 

Grey_Critic

What about visitors/tradesmen onsite who may request to charge a vehicle? I would assume that will not be free.