This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.


Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

Hybrid company car

Posts: 2
Joined: Tue Aug 13, 2019 5:52 pm

Hybrid company car

Postby Bantam_dave21 » Wed Aug 14, 2019 8:51 am


This is my first post...hopefully someone more knowledgable than me can assist...

I have a hybrid company car circa 50g/km. I also tax on fuel benefit ie the company fully funds all fuel.

I need to know if I can claim back electricity for charging at home for business miles, arguably being fully funded all miles are business miles in a way.

I’ve found lots of info ref charging at the place of work at that electricity is not regarded as fuel etc but can’t find anything at the moment that looks based on fact with reference to charging at home. My charger has an in line meter so it would be messy I could record this after every charge. The lady that looks after our accounts thinks any reimbursement would be a benefit and taxable which seems rather odd given I’m already paying tax on the fuel element of the car BIK and that electricity provided for charging hybrids in the workplace is not regarded as fuel and is not taxable.

Could someone provide any assistance on the above and any elements of the EIM that would provide guidance. I’m happy either way if I am to be taxed on any reimbursement I’ll simply stop charging my vehicle at my home which will just mean more actual fuel is used which will result in more company fuel used - mileage on battery actually equates to be cheaper than petrol despite the low range.

Thank you

Posts: 2
Joined: Tue Aug 13, 2019 5:52 pm

Re: Hybrid company car

Postby Bantam_dave21 » Wed Aug 28, 2019 6:47 pm


Any advice anyone at all please?

Posts: 2949
Joined: Wed Aug 06, 2008 4:01 pm

Re: Hybrid company car

Postby robbob » Thu Aug 29, 2019 8:22 am

good question - i have had a little look - beinga litle look there is a chance i may have missed something.

Ok i have simply lifted this from the att website so you should be fine claiming for business use element at least without any issues - presuming you use a fair calculation method.
The lack of AFRs for Pure-electric company cars makes the situation for reimbursing employees for business mileage more complicated. Where an employee charges a Pure-electric company car:
If their employer reimburses them for the cost of the electricity, the tax treatment depends on the use of the car:
Business use only – the s289A ITEPA 2003 exemption for paid or reimbursed expenses will exempt the amount received.
Personal or mixed use - the reimbursement is taxable as earnings, with the employee entitled to a deduction for the cost of business miles travelled.
If their employer does not reimburse them, they are entitled to a deduction under s337/s338 ITEPA 2003 for the actual electricity cost of business miles travelled.
Note unless you have very high personal mileage or very low business mileage you may be better off ditching the fuel benefit and then simply reimbursing yourself at the official rate of 10p-12p per business mile travelled - or paying the company back for personal fuel (not sure how you would calculate that with a hybrid!). The higher the electric use of the car the more you are likely to save in this method as the cost of electric charging will be less than 10p per mile.
Unless you change car the swap would need to be done from the start of the tax year - i can't think of anything stopping you reimbursing company now for private use from April onwards if that is a better route.

Return to “Income Tax”