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HMRC internal manual

Employment Income Manual

From
HM Revenue & Customs
Updated
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Car benefit: special cases - issues relating to electric cars

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.  Taxable benefit based on cost to the employer.
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 None - advisory fuel rates are based on the average price of fuel per mile - electricity is not a fuel Authorised Mileage Allowance Payments (AMAPs), and, if the employer pays less than the published rates, may claim tax relief under Mileage Allowance Relief (MAR).