Leased Electric Car Mileage Claim

How much mileage per mile can i claim when driving a salary sacrifice scheme electric car for business purposes?

Hi Egemen Coskun
9p per mile
Thank you.

Isn't the 9p the maximum an employer can pay without creating a tax liability? I don't think that is what Egemen was referring to as they asked how much they can claim. I think they're asking what they can claim tax relief on.

Thanks for the response. I would have thought AMAP applies here as the employee bears the cost of the car hence the depreciation of the car. So salary sacrifice electric cars, even the employee pays for the lease cost, classified as company car? as 9p is the allowance for company cars only as per the information provided on HMRC website.

Hi Egemen Coskun

As it is your own car, yes you can claim the 45p per mile.

Thank you

Hi These appears to be a grey area as I have been offered a leased salary sacrifice scheme electric car. Under this scheme I will be paying the lease via salary sacrifice via my monthly salary, but will suffer a benefit in kind charge as if it was a company car, which will be reported via P11d. So for reclaiming fuel, is this a company car and therefore the rate is 9p per mile? Or is it classified as my own car (as i am paying the lease) at use the 45p per mile charge? Can you please confirm? Thanks, 

Name removed admin 

Hi,
A leased car can be classed as a company car OR your own car.
It's a company car if it's made available to you, the employee, by reason of your employment.
This can be where it is leased by the employer and made available to you, leased from a third party and made available to you by reason of your employment, or leased to the you directly, via a scheme arranged by your employer.
It is still a company car if you cover all the leasing and associated costs.
Where none of the above apply, though, it's classed as your own car - when you lease it from a third party with no link to the employment.
Thank you.

I have a leased salary sacrifice scheme electric car. Under this scheme I will be paying the lease via salary sacrifice via my monthly salary, but will suffer a benefit in kind charge as if it was a company car, which will be reported via P11d. So for reclaiming business mileage fuel, is this a company car and therefore the rate is 9p per mile? Or is it classified as my own car (as i am paying the lease) and use the 45p per mile charge? Can you please confirm? Thanks,

Hi Vito Sepe

We would need to review your record to check if being treated as a company car or your own leased car.
You can contact HMRC at Income Tax: general enquiries

Thank you

Hi Under what circumstances would my employer only reimburse me 9p/mile, when I have a “company car” attained through salary sacrifice, and I travel business miles in a personal (petrol) vehicle? My employer is claiming that because I have a SS-EV vehicle, if I travel in a non company car (personal) that I can now only claim the 9ppm.

Hi Ross Phillips,
Please refer to:
Advisory fuel rates
Thank you. 
 

Hi I have a EV vehicle via a salary sacrifice scheme, classed as a company car. If I use a different vehicle (petrol) for business mileage, can I claim the 45ppm or as I have a company vehicle any business mileage, regardless of the vehicle I use is only claimed at 9ppm? Thanks

Hi,

Please see- Travel — mileage and fuel rates and allowances The rate of 9ppm is based on an electric company vehicle.  If you are using your own electric vehicle, it is 45ppm for the first 10000 miles. Please also have a look at: Tax on company benefits Thank you.

 

Maybe a bit late, but I think most employers claim back the BIK through payroll i,e, assume most are not on SA, P11D will have zero/nothing entered if so

Dear HMRC Team, Could you please confirm whether we are compliant and whether the below statements are correct please? Key Points: Employees who are driving their personal cars and receiving a car allowance from the company. The company is reimbursing them at £0.19 per mile for business mileage. HMRC sets approved mileage allowance payments (AMAP) rates for employees using their personal cars for business purposes. These rates are: £0.45 per mile for the first 10,000 business miles (for cars and vans). £0.25 per mile for any additional business miles above 10,000. Tax Implications: If the reimbursement rate is below or equal to the HMRC-approved rates (£0.45/£0.25), the payment is not taxable and does not need to be reported to HMRC. If the reimbursement rate exceeds the HMRC-approved rates, the excess amount is taxable and must be reported to HMRC. Our Situation: Our company is reimbursing at £0.19 per mile, which is significantly lower than the HMRC-approved rate of £0.45 per mile (for the first 10,000 miles). Since the reimbursement rate is below the HMRC-approved rate, there is no taxable benefit, and the reimbursement does not need to be reported to HMRC. Is this correct? Please note we are applying the same logic for employees driving Personal Electric cars? Thank you in advance for confirming. Kind regards

Hi Brahim43,
If you are paying the exempt amount or less, you do not ned to report this to HMRC but you should keep records. Employees can contatct Personal Tax to claim tax relief on amounts between what they are paid and the exempt amount.
Please refer to the following on Gov.uk:-
Expenses and benefits: business travel mileage for employees' own vehicles.
Thank you.