How to apportion advisory mileage rates for EVs
In September, HMRC introduced a new two-tier advisory mileage rate for employees charging electric vehicles. The rate differs depending on whether the vehicle is charged at home or not. But what’s the correct approach if an employee does both?
HMRC’s advisory mileage rates for employer-provided vehicles has included an electric rate for a number of years. However, in September the new two-tier system started with the following rates currently in effect:
- 8p per mile for home charging
- 14p per mile for public charging
The higher rate reflects the higher cost of using commercial chargers, e.g. at a motorway service station. The published guidance has now been updated to cover the situation where a journey is powered by both home and public charging. For example, if an employee charges their car at home overnight, and needs to undertake a business journey the following day. They don’t have sufficient range to make the return leg, so they stop at a service station partway back. The final part of the journey is therefore powered by public charging. The guidance explains that you should apportion based on “how much charging happens at each place” using any fair and reasonable method.
Related Topics
-
Special payroll deadline for Christmas
If you pay staff early in December because of Christmas it’s important that you enter the information on your payroll submission correctly. What do you need to know to get this right?
-
Paying VAT when cash is tight
Your business has suffered a major cash-flow problem caused by an unexpected bad debt. Your VAT return is due for payment and you do not have enough funds to pay on time. What can you do?
-
How to improve your state pension
If you ask the Department for Work and Pensions (DWP) it will tell you that once you’ve paid 35 full years of NI contributions you can’t increase your state pension by paying more. That’s wrong. When can paying NI beyond the 35-year limit benefit you?
This website uses both its own and third-party cookies to analyze our services and navigation on our website in order to improve its contents (analytical purposes: measure visits and sources of web traffic). The legal basis is the consent of the user, except in the case of basic cookies, which are essential to navigate this website.