Did you know that HMRC's own guidance on reimbursement of electricity costs when charging a company-provided electric car actually conflicts with the law? ...
However, it is widely interpreted that these reimbursements by employers to employees are, in fact, included in the car benefit charge!
Put simply, this is because electricity is not actually vehicle fuel, so the expense referred to in HMRC guidance is covered. Employees should accurately record the electricity used to recharge the vehicle and the employer pays the employee for the amount of electricity used each time.
No records mean the employer could be seen to be funding an employee's domestic electricity bill which is, of course, going to be liable to income tax and National Insurance contributions. However, HMRC accepts that there is no profit when the employer pays 5p per mile for business travel in electric vehicles, where the employee has paid for the electricity.
A number of accountancy trade bodies are talking to HMRC about this electric car tax conflict, and I'll let you know if changes will be made.
If you feel inspired to find out more about anything I've said here, do call me on 01908 774320 or leave a comment below and I'll be in touch as soon as I can.