Company Car drivers... you're only entitled to 4 pence per mile !

[Goaty]

Hi all,

I'm no accountant (!!) but I thought it's worth mentioning that company car drivers who switch to an Enyaq (or any other EV) for massive reductions in BiK, note that we're currently only entitled to claim back 4 pence per mile for business journeys.

If you switch to a low cost energy tariff, then the cost to charge your EV from home overnight for a business trip the next day, might well be covered by the 4ppm you're able to claim back for the business trip.

However if your trip distance exceeds what you can achieve from a full home charge, you will need to charge up away from home, quite possibly at an expensive service station charger. These typically seem to charge around 30 pence per kW, which very roughly = 12p to 15p per mile. Bear in mind, you'll only get back 4ppm, so you could be out of pocket on a long business trip.

It's something which can be easily overlooked - one of my colleagues hadn't realised this ! Of course, it still works out less than being taxed over £400 / month for a I.C.E. car, unless you're driving 10k a month or something horrendous like that !!

Cheers.

[almondo]

Thanks buddy, I'll bear this in mind.
My company are working out the savings they'll potentially be making on diesel/tax and employee tax. I for one will save around £300+ per month on the BIK.

I'm going to be the Guinea pig for the company by being the 1st to get a BEV. If it works out then they'll roll this out to all the field based sales in Europe.

[scratch113]

Hi all,

I'm no accountant (!!) but I thought it's worth mentioning that company car drivers who switch to an Enyaq (or any other EV) for massive reductions in BiK, note that we're currently only entitled to claim back 4 pence per mile for business journeys.

If you switch to a low cost energy tariff, then the cost to charge your EV from home overnight for a business trip the next day, might well be covered by the 4ppm you're able to claim back for the business trip.

However if your trip distance exceeds what you can achieve from a full home charge, you will need to charge up away from home, quite possibly at an expensive service station charger. These typically seem to charge around 30 pence per kW, which very roughly = 12p to 15p per mile. Bear in mind, you'll only get back 4ppm, so you could be out of pocket on a long business trip.

It's something which can be easily overlooked - one of my colleagues hadn't realised this ! Of course, it still works out less than being taxed over £400 / month for a I.C.E. car, unless you're driving 10k a month or something horrendous like that !!

Cheers.

All absolutely correct for company car drivers (although the 4ppm is the advisory rate), but to avoid confusion, the normal 45ppm for first 10k miles/25ppm thereafter still applies for those doing business miles in a privately owned EV (but do check your insurance as well!)

[Goaty]

Just bringing this one back up again - another colleague of mine got his ID3 last week (company car) but was unaware that he can only claim 4p per business mile. He thought it would still be 12 p or whatever it is, for a diesel company car until I burst that bubble !!

Might be other people caught out by this, too (charging at a service station at 30 pence per kW equates to around ~ 12 pence per mile anyway (roughly) and you can only claim back 4p (unless your company is kind. Many will opt to use the rate set by the Government = 4p).

Company car drivers doing long distances will generally have to charge somewhere away from home, if they want to get back !!

The way I look at this, is I’m paying far less BiK than I would be in a diesel company car, so even though I’m effectively funding long business journeys partly out of my own pocket, I’m still better off having an EV by some considerable margin.