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Chapter EIM23900

Document Cited in Related
Vincent
Published date22 May 2014
Record NumberEIM23900
CourtHM Revenue & Customs
IssuerHM Revenue & Customs
Provision Company car made available for private use Employee’s car used for business
Employer allows cars to be recharged from a vehicle charging point at work. No taxable benefit - electricity does not sit within the meaning of fuel so the Fuel Benefit Charge does not apply. And there is no further benefit charge as s239(4) ITEPA 2003 specifically excludes a benefit connected with a taxable car. Before 6 April 2018 - Taxable benefit based on cost to the employer. From 6 April 2018 – see EIM01035.
Employer pays for a vehicle charging point to be installed at the employee’s home. No taxable benefit because of S202(1) ITEPA 2003 (and S239 (4)). Taxable benefit based on cost to the employer.
Employer pays for charge card of £100 per year to allow individuals unlimited access to local authority vehicle charging point. No taxable benefit because of S202(1) ITEPA 2003 (and S239 (4)). Taxable benefit based on cost to the employer.
Manufacturer leases battery separately to the car. Cost of battery forms part of the list price - car will not go without it so it must be integral (like wheels). Not taxable.
List price includes cost of battery Use list price
List price does not include cost of battery Use notional list price
Employer pays to lease a battery for a privately owned car Taxable benefit based on cost to employer
Mileage allowances Advisory Electricity Rate Authorised Mileage Allowance Payments (AMAPs), and, if the employer pays less than the published rates, may claim tax relief under Mileage Allowance Relief (MAR).
Tax treatment when electric cars are charged Employee charges car at home: electricity provided by employer

Flowchart

Stage Action Outcome
Stage 1 Who owns the car? If company car, no additional benefit
If employee’s car, go to stage 2
Stage 2 For what use is the car? If private use only, the cost of electricity used is taxable as a benefit-in-kind
If business use only or mixed use, the total cost of electricity used is taxable as a benefit-in-kind. There is no matching deduction. Plus AMAPs and/or MAR for business miles travelled
Employee charges car at home: their employer reimburses the electricity costs

Flowchart

Stage Action Outcome
Stage 1 Who owns the car? If company car, go to stage 2
If employee’s car, go to stage 3
Stage 2 For what use is the car? If
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