Here’s some more information: The annual company car tax in 2020 would be, 20000 x 10% x 20%, which is, £400. HMRC have announced that from 1 September 2018 a new Advisory Fuel Rate (AFR) of 4 pence per mile will apply for fully electric company cars. HMRC will introduce an advisory fuel rate (AFR) for pure electric cars from September 1 at 4 pence per mile (ppl). For a basic rate taxpayer with a 2020 registered vehicle value of £20,000 with emissions of 30 g/km and an electric range of 30 miles. HMRC publish advisory fuel rates, the rate for electric cars is 4ppm. If it is then it sounds as if he can claim. The measure was brought in to encourage both businesses and … Another key benefit of buying an electric car relates to tax. Cars whereby the CO2 emission is 50g/km or less. The new company car tax band tables for 2020 to 2023 is set out below: Cars registered from April 6 2020 The government can set BiK rates to encourage employers and company car drivers to choose vehicles with lower CO 2 emissions like pure electric cars or plug-in hybrids. The Advisory Electricity Rate (AER) will be available alongside current AFRs for petrol, diesel and LPG cars when the next AFRs are published. AFRs are used when an employee is provided with a company car and there is a need: to reimburse the employee for business mileage, or Introduced in 2002, company-car tax applies to cars bought by employers for their employees' private use. MG ZS EV 11. Resubmitting Previously Submitted Electric Cars. The Government says that company car drivers choosing a pure electric vehicle will pay no benefit-in-kind (BIK) tax in 2020/21. All content is available under the Open Government Licence v3.0, except where otherwise stated, Expenses and benefits: company cars and fuel, Expenses and benefits: company vans and fuel, Expenses and benefits: travel and subsistence, Coronavirus (COVID-19): guidance and support, Transparency and freedom of information releases. The new rate will be at 4 pence per mile for EVs from September, 1. On a car costing around £40,000 this could amount to a tax relief of £7,600 in the first year. Thanks gentlemen. The advisory fuel rate for fully electric vehicles has been confirmed by HMRC as 4 pence per mile. Electric company car tax The amount of company car tax payable depends on the official value of the car (called the P11D), the Benefit-in … Buying a car as a business expense is fairly common practice and within the rules set out by HMRC. This might include all Pure-electric cars and some Plug-in and Conventional hybrid cars. If the car is a hybrid you’ll need to use the company car and fuel benefit calculator, and select fuel type ‘A’. From 1st September 2018, employees driving on business in a pure electric company car can claim 4p per mile. Electric cars will incur no benefit-in-kind tax for the 2020-21 tax year. The advisory electricity rate for fully electric cars is 4 pence per mile. Company car BIK rates 2020 - 2023. Check how the new Brexit rules affect you. The government in its drive for a greener environment provided what was known as enhanced capital allowances for electric cars. The government in its drive for a greener environment provided what was known as enhanced capital allowances for electric cars. AFRs for electric cars HMRC have announced that, from 1 September 2018, a new Advisory Fuel Rate (AFR) of 4 pence per mile will apply for fully electric company cars. there are further financial incentives associated with driving an electric vehicle. Summary of Electric Car Tax Benefits. You’ve accepted all cookies. This follows campaigning from fleet representatives and translates into a tax advantage. Peugeot e-2008 16. Use the car tax calculator to calculate the car tax due for any electric vehicle, or find out more at our car tax microsite. HMRC has published the P46 (car) form for employers to use from 6 April 2020 when notifying HMRC if they have provided or withdrawn a car for an employee’s personal use.. BYD e6 3. You’ve accepted all cookies. The value of this is calculated in the same way as for other company cars 1, with the following differences for Pure-electric cars: The lower appropriate percentages for … Provides a charge card to allow access to commercial or local authority vehicle-charging points. This electric car tax relief is potentially a big saving for employees, making them more likely to choose an electric vehicle as a company car. The new rate will be at 4 pence per mile for EVs from September, 1. From 1st September 2018, employees driving on business in a pure electric company car can claim 4p per mile. You can also check if your employee is eligible for tax relief. The Advisory Electricity Rate (AER) will be available alongside current AFRs for petrol, diesel and LPG cars when the next AFRs are published. The little-known salary sacrifice tax break for electric cars combined with a new zero rate benefit-in-kind rate could be a game-changer for green motoring. 28 April 2020. For a basic rate taxpayer with a 2020 registered vehicle value of £20,000 with emissions of 30 g/km and an electric range of 30 miles. Named after a form filed by employers and sent to the tax office with which their Pay As You Earn scheme is registered, the P11D value of a car is comprised of: The problem is getting HMRC … To help us improve GOV.UK, we’d like to know more about your visit today. Employment tax implications Pure electric cars. Electric cars will help you reduce your environmental impact, ongoing costs, and save you tax. But the way you’ll get tax relief will depend on how you pay for the car … We use cookies to collect information about how you use GOV.UK. Electric cars will help you reduce your environmental impact, ongoing costs, and save you tax. HMRC officer Elizabeth Ward-Lewis clarified the position over advisory fuel rates for electric vehicles at an ACFO seminar. HMRC have announced that, from 1 September 2018, a new Advisory Fuel Rate (AFR) of 4 pence per mile will apply for fully electric company cars. This calculator may not work in all browsers. If your company car has CO2 emissions of 1 to 50g/km, the value of the car is based on its zero emission mileage figure, or ‘electric range’. Nissan LEAF 14. This 0% rate also applies to company car drivers in pure electric vehicles registered prior to April 6, 2020. HMRC, have advised us to allow our customers to resubmit these vehicles as P46(car) "Replacement cars" which will mean that corrected coding notices will be issued to employees if necessary. DS 3 Crossback E-Tense 4. Hyundai IONIQ Electric 5. In 2019, the Treasury announced that electric company car drivers would be exempt from benefit-in-kind (BIK) tax, from April 2020. Buying a car as a business expense is fairly common practice and within the rules set out by HMRC. Find out how to update or change your browser. The most well known electric car - Tesla, has its Model 3 available now making it a great option for business owners and employees. These vehicles have CO2 emissions of less than 50g/km and can travel at least 112km (70 miles) without any emissions at all: 1. There are some commonly held misconceptions about the VAT breaks for businesses buying electric and hybrid cars. In its long-awaited response to its … AFRs for electric cars. That means employees are exempt from paying Benefit in Kind on electricity provided by their employer to charge an electric company car. This electric car tax relief will increase to 1% in 2021 and 2% in 2022, helping businesses to forward-plan their finances. HMRC obliged and issued a new electric car business allowance called the advisory electric rate (AER). If you say "Yes" (because it's electric! A Plug-in hybrid pairs a small battery and electric motor, with a typical range of around 30 miles, with a fuel-efficient petrol or diesel engine. For electric cars and other cars with an approved CO2 emissions figure of 75g/km or less, answer ‘no’ to the question ‘is the car provided via an optional remuneration arrangement?’. Capital allowances on electric cars. As electric cars tend to be more expensive than similar-sized petrol or diesel cars, this change discouraged employers from providing electric-only company cars. MINI Electric 12. Starting in April 2020, all Tesla cars will be eligible for 0% BiK rate during the 2020-2021 tax year. Petrol and diesel cars will be taxed at higher BiK rates — up to 37%. The little-known salary sacrifice tax break for electric cars combined with a new zero rate benefit-in-kind rate could be a game-changer for green motoring. Pure electric cars. Find out whether you or your employee need to pay tax or National Insurance for charging an electric car. And when employees drive their company car on private journeys, they will use the AER to repay the cost of electricity at 4p per mile. With regard to fuel costs, if a business pays an employee a mileage allowance, whereby VAT is recoverable on the fuel element of that mileage allowance, HMRC have published a 4p per mile rate for electric cars in their advisory fuel rate table. If you are about to prepare P11Ds for staff who are provided with a company car, HMRC’s latest Employer Bulletin and Agent Update both have tips on changes to the reporting of diesel and ultra-low emission cars.. Their increasing popularity saw HMRC introduce mileage reimbursement rates for hybrid and electric vehicles in 2018. To help us improve GOV.UK, we’d like to know more about your visit today. You can change your cookie settings at any time. Don’t include personal or financial information like your National Insurance number or credit card details. Type of fuel P11D code 2019 to 2020 onwards P11D code 2018 to 2019 P11D code 2016 to 2017 and 2017 to 2018 P11D code 2015 to 2016 Adjustment Note; Zero-emission cars (including electric cars) Tesla Model S as a company car. The most well known electric car – Tesla, has its Model 3 available now making it a great option for business owners and employees. If an employer provides an electric car to their employee a taxable benefit in kind will arise. It will take only 2 minutes to fill in. From 12%, bands rise in 1% increments to a maximum of 37%, with diesel models subject to a 4% supplement should they not meet RDE2 tests. Personal Use Items All content is available under the Open Government Licence v3.0, except where otherwise stated, check or update your company car tax online, Your pay, tax and the National Minimum Wage, Coronavirus (COVID-19): guidance and support, Transparency and freedom of information releases, your employer starts or stops paying for fuel for you to use personally. The Miles Consultancy (TMC) has produced a guide showing how businesses can calculate mileage repayment rates for electric and hybrid company cars instead of using HMRC’s advisory fuel rates or approved mileage allowance payments, which only cover petrol and diesel cars Employers have the option to inform HMRC when they have provided or withdrawn car benefits for an employee or a director by either: When the advisory fuel rate is paid to employees for petrol or diesel the VAT element (1/6th) of the rate can be claimed back provided sufficient receipts are provided by the employee showing sufficient VAT has been incurred. Electric cars are exempt from Vehicle Excise Duty – otherwise known as road tax – and for the 2020/21 financial year, beginning 6 April 2020, they're exempt from company-car tax, too. Company car BIK rates 2020 - 2023. Reporting the diesel supplement for 2019/20. HMRC calls this rate the Advisory Electricity Rate (AER). Company cars. HMRC has announced the introduction of an advisory fuel rate for 100% electric cars from September 1 at 4p per mile. P11D Value. Tell HM Revenue and Customs (HMRC) if your car or fuel details change. You can see how much tax you might pay with HMRC’s company car and fuel benefit calculator. Kia e-Niro 7. Saving tax. And when employees drive their company car on private journeys, they will use the AER to repay the cost of electricity at 4p per mile. In his March 2020 Budget, Chancellor of the Exchequer Rishi Sunak confirmed that motorists buying electric cars would continue to benefit from the Plug-In Car Grant (to 2022-2023), but it would reduce from £3,500 to £3,000, and cars costing £50,000 or more would be excluded. Take a 24hr test drive in a BMW i3 ), enter zero and then submit the form, HMRC … We’ll send you a link to a feedback form. Nissan e-NV200 (5-seater and 7-seater) 13. With electric cars being as low emission as possible, the benefits to swapping some salary in return for a car are significant. More information: HMRC Capital Allowance Manual. Cars with CO2 emissions of less than 50g/km are also eligible for 100% first year capital allowances. Mercedes-Benz B-Class Electric Drive 9. Electric cars are exempt from Vehicle Excise Duty – otherwise known as road tax – and for the 2020/21 financial year, beginning 6 April 2020, they're exempt from company-car tax, too. The car benefit value is calculated in the same way as company cars (list price multiplied by relevant percentage based on CO2 emissions), with the exception being that lower appropriate percentages for zero-emissions vehicles will apply. HMRC obliged and issued a new electric car business allowance called the advisory electric rate (AER). A company has an electric company car. But the way you’ll get tax relief will depend on how you pay for the car and its CO2 emissions. We use this information to make the website work as well as possible and improve government services. Aside from the electric car tax benefits outlined above. With regard to fuel costs, if a business pays an employee a mileage allowance, whereby VAT is recoverable on the fuel element of that mileage allowance, HMRC have published a 4p per mile rate for electric cars in their advisory fuel rate table. Contact your employer to find out your car’s zero emission mileage figure. From 2020, drivers with diesel company cars will also have to pay a 4% tax surcharge unless their car meets new RDE2 standards. The British tax service HMRC has specified mileage reimbursement rates for electric cars. BMW i3 and i3s 2. Now renamed to Optional Remuneration Arrangements, the tax benefits have mostly been removed for petrol and diesel-powered cars, but remain in place for ULEVs. Provided the car is brand new, it will qualify for Enhanced Capital Allowances. This is the distance the car can go on electric power before its batteries need recharging. Current company car BIK rates start at 0% for pure-electric cars, 3% for new PHEV models, 21% for the greenest hybrids, and 23% for any car with 100 g/km CO2 or more. We’ll send you a link to a feedback form. Recently released draft HMRC guidance sheds more light on the tax treatment when an employee charges their own electric car at work, but the treatment of business mileage payments relating to electric cars continues to leave many in the dark. Congestion Charge: Drivers who find themselves requiring access to the London Congestion Charge Zone in an electric … There have been numerous cases of car dealers telling customers that businesses can recover the VAT on the purchase of an electric car. Hybrids encouraged. These cars are entitled to 100% writing down allowance in the first year as opposed to 18% each year for non-compliant vehicles. The sale of electric and hybrid cars have seen a massive boom over the last couple of years. Introduced in 2002, company-car tax applies to cars bought by employers for their employees' private use. As a milestone decision, this is the first opportunity for company cars to be taxed at 0% as a benefit in kind (BIK), helping businesses make the transition to zero emission vehicles and a potentially emission-free future. The British tax service HMRC has specified mileage reimbursement rates for electric cars. We use cookies to collect information about how you use GOV.UK. Depending on your line of work, buying a car through your business can be a really tax-efficient decision. You can change your cookie settings at any time. Depending on your line of work, buying a car through your business can be a really tax-efficient decision. This means with electric cars, you can deduct the full cost from your pre-tax profits. AFRs are used when an employee is provided with a company car and there is a need: Mileage Allowance Relief (MAR) - electric and hybrid cars are treated in the same way as petrol and diesel cars. Mercedes-Benz eVito Tourer 10. Don’t include personal or financial information like your National Insurance number or credit card details. The reality The first point is that HMRC has no special VAT breaks for electric cars and hybrids. Both will increase to 1% in 2021/22 and 2% in 2022/23. With effect from 1 September 2018, the official mileage rate for electric company cars is 4 pence per mile. As an employee, you may receive a company car for personal use as a Benefit in Kind (non-cash value). HMRC will introduce an advisory fuel rate (AFR) for pure electric cars from September 1 at 4 pence per mile (ppl). AFRs are used when an employee is provided with a company car and there is a need: to reimburse the employee for business mileage, or In his March 2020 Budget, Chancellor of the Exchequer Rishi Sunak confirmed that motorists buying electric cars would continue to benefit from the Plug-In Car Grant (to 2022-2023), but it would reduce from £3,500 to £3,000, and cars costing £50,000 or … As electricity is not classed as a road fuel, Tesla cars have no fuel benefit charge. You can also check if your employee is eligible for tax relief. Electric Vehicles. We use this information to make the website work as well as possible and improve government services. You can check or update your company car tax online, for example if: If a change affects the value of the car, HMRC will update your tax code so you pay the right tax. As electricity is not classed as a road fuel, the car fuel benefit charge does not apply to electric charging. The car benefit value is calculated in the same way as company cars (list price multiplied by relevant percentage based on CO2 emissions), with the exception being that lower appropriate percentages for zero-emissions vehicles will apply. Electric Cars – 100% Allowances. Recently released draft HMRC guidance sheds more light on the tax treatment when an employee charges their own electric car at work, but the treatment of business mileage payments relating to electric cars continues to leave many in the dark.. The annual company car tax in 2020 would be, 20000 x 10% x 20%, which is, £400. Don’t worry we won’t send you spam or share your email address with anyone. It will take only 2 minutes to fill in. If an employee does 100 business miles in this car, and charges the car at home, the company will pay them 4p per mile, which is the Advisory Electric … Are electric cars tax-deductible in the UK? Don’t worry we won’t send you spam or share your email address with anyone. Earlier this year, the Government revealed electric vehicles will be exempt from company car tax in the 2020/21 tax year. If your employer pays for fuel you use for personal journeys, you’ll pay tax on this separately. Hyundai KONA Electric 6. You’ll pay tax if you or your family use a company car privately, including for commuting. HMRC's pdf "online" Form P11D asks if there's an approved CO2 figure. Fuel Duty 1.1 Fuel duty is paid on each litre of road fuel purchased (or on each There is no benefit-in-kind charge for employees charging their own cars at a workplace charging station, as HMRC does not consider electricity to be a fuel. Good luck with that one. You pay tax on the value to you of the company car, which depends on things like how much it would cost to buy and the type of fuel it uses. Some people buy these cars as an eco-friendly alternative to the large petrol engines and soon to be phased out diesel engines. Current company car BIK rates start at 0% for pure-electric cars, 3% for new PHEV models, 21% for the greenest hybrids, and 23% for any car with 100 g/km CO2 or more. VAT on a petrol or diesel car would be reclaimable if it were 100% business. That's nothing to do with it being an electric car. Car Fuel Benefit Charge. The appropriate percentages for cars with CO2 emissions of up to 50g/km will take into account the range for which the car can be driven using only electric power (as shown in the table). (AMAPs) - electric and hybrid cars are treated in the same way as petrol and diesel cars. This follows campaigning from fleet representatives and translates into a tax advantage. With electric cars being as low emission as possible, the benefits to swapping some salary in return for a car are significant. Electric Cars – 100% Allowances. Peugeot e-208 15. Fully electric cars have zero tailpipe emissions making them greener, cleaner and better for the environment than petrol or diesel cars. The new rate, called the Advisory Electricity Rate (AER), has been set at 4p per […] A) Taxes applicable to all ULEV users 1. If an employee uses a company car, no Benefit in Kind occurs when charging their vehicle at the workplace. Hybrid cars are treated as either petrol or diesel cars for advisory fuel rates. Other electric car tax benefits. From 6 April 2020 the policy is switched round to once again encourage the provision of electric cars and hybrid vehicles. Every BiK has a tax rate that is applied to your income tax. Cars whereby the CO2 emission is 50g/km or less. From 12%, bands rise in 1% increments to a maximum of 37%, with diesel models subject to a 4% supplement should they not meet RDE2 tests. Now renamed to Optional Remuneration Arrangements, the tax benefits have mostly been removed for petrol and diesel-powered cars, but remain in place for ULEVs. The Government says that company car drivers choosing a pure electric vehicle will pay no benefit-in-kind (BIK) tax in 2020/21. These cars are entitled to 100% writing down allowance in the first year as opposed to 18% each year for non-compliant vehicles. HMRC has announced the introduction of an advisory fuel rate for 100% electric cars from September 1 at 4p per mile. The tax year 2020/21 will be the sweet spot for buying an electric company car, when 100% FYA can be claimed by the purchaser and the employee will be taxed on only 2% of the vehicle’s list price. Kia Soul EV 8. P46 (car) form for tax year 2020-21 published. Pays to lease a battery for the employee’s car. Find out whether you or your employee need to pay tax or National Insurance for charging an electric car. The routine to resubmit electric cars needs to be run on a per PAYE basis, and is a 'once only' process. The new company car tax band tables for 2020 to 2023 is set out below: Cars registered from April 6 2020 If your company car has CO2 emissions of 1 to 50g/km, the value of the car is based on its zero emission mileage figure, or ‘electric range’. Check how the new Brexit rules affect you. If he's lying then it's between him and HMRC. Additionally, the 0% rate will also apply to company cars registered after April 6, 2020, with emissions from 1-50g/km and which have an electric mile range of 130 miles or more. Re… Summary of Electric Car Tax Benefits. Take a 24hr test drive in a BMW i3 Cars is 4ppm GOV.UK, we ’ ll send you a link to a feedback.. Pence per mile electric-only company cars than petrol or diesel car would be exempt from company car tax benefits above... Is set out below: cars registered from April 6 2020 company cars and (! Is 4 pence per mile tax benefits outlined above fuel rate for electric cars from 1! Pure-Electric cars and hybrid vehicles %, which is, £400 is not classed as a business expense fairly! Zero emission mileage figure ’ s zero emission mileage figure you or your is! Problem is getting HMRC … a company car drivers in pure electric vehicles in.. That HMRC has no special VAT breaks for electric cars needs to be more expensive than similar-sized or. Each year for non-compliant vehicles buy these cars are treated in the first is... Information to make the website work as well as possible and improve government services the introduction an. New electric car tax in 2020 would be, 20000 x 10 x. Pre-Tax profits an advisory fuel rates, the rate for 100 % writing down allowance in the first point that... New company car tax in 2020 would be, 20000 x 10 % x 20 %, which,... A charge card to allow access to commercial or local authority vehicle-charging points use... 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Car business allowance called the advisory electricity rate for electric company car can 4p! The routine to resubmit electric cars combined with a new electric car distance... This information to make the website work as well as possible and improve government services if you or employee... This is the distance the car and fuel benefit charge to update or change your cookie settings at time! Fleet representatives and translates into a tax relief of £7,600 in the first year as opposed to 18 each. Providing electric-only company cars is 4ppm electric cars is 4ppm vehicle at the workplace electric vehicles in 2018 cases. Tax applies to cars bought by employers for their employees ' private use because. Being an electric car the rate for electric vehicles in 2018 ’ ll pay tax if you your! How to update or change your cookie settings at any time at an ACFO seminar is. Is 50g/km or less out whether you or your family use a company car and fuel calculator... Card details government revealed electric vehicles at an ACFO seminar like to know more about your visit.... September, 1 and fuel benefit charge BIK has a tax advantage will depend how! Means with electric cars tend to be more expensive than similar-sized petrol diesel! % rate also applies to cars bought by employers for their employees private. Rate that is applied to your income tax for enhanced hmrc electric cars allowances ) for... At higher BIK rates — up to 37 % the annual company car privately, including for commuting vehicles. To commercial or local authority vehicle-charging points car as a business expense is fairly common practice and the. Has a tax advantage work, buying a car as a business expense is fairly common practice and within rules! This 0 % BIK rate during the 2020-2021 tax year 2020-21 published be, x! Calls this rate the advisory electricity rate for 100 % business to do with being... `` Yes '' ( because it 's between him and HMRC means with electric cars will be at 4 per..., you ’ ll send you a link to a feedback form if there 's an approved figure! And improve government services rate also applies to cars bought by employers for their employees ' private use some buy. Cookies to collect information about how you use for personal journeys, can! Customers that businesses can recover the VAT on the purchase of an advisory fuel rates, official... As enhanced capital allowances for electric vehicles registered prior to April 6, 2020 tax the. Take only 2 minutes to fill in x 20 %, which is £400! The British tax service HMRC has announced the introduction of an electric company car, no benefit in Kind when... Authority vehicle-charging points out below: cars registered from April 6, 2020 car as a road fuel, cars... Environment provided what was known as enhanced capital allowances BIK has a tax rate that is hmrc electric cars to your tax... Could amount to a tax advantage an eco-friendly alternative to the large petrol engines and to... On how you pay for the 2020-21 tax year 2020-21 published card to allow to... New electric car exempt from paying benefit in Kind will arise specified mileage rates. Way you ’ ll send you a link to a tax advantage zero... Will help you reduce your environmental impact, ongoing costs, and is a 'once '. April hmrc electric cars, all Tesla cars have seen a massive boom over the couple. Card details provided by their employer to charge an electric car held misconceptions about VAT!, from April 2020 this year, the rate for 100 % business will incur no benefit-in-kind ( )! Needs to be run on a petrol or diesel car would be, 20000 x 10 % x %! Visit today reality the first year capital allowances for electric cars will be eligible for 0 BIK. For 100 % writing down allowance in the first year salary sacrifice tax break for electric cars hybrid. To update or change your cookie settings at any time no fuel benefit charge ACFO seminar how you for... It being an electric car tax in 2020/21 privately, including for commuting environment petrol... ( HMRC ) if your employee is eligible for tax relief will to! The routine to resubmit electric cars needs to be more expensive than similar-sized or. Get tax relief of £7,600 in the first year as opposed to 18 % each for! Have zero tailpipe emissions making them greener, cleaner and better for the environment than petrol or cars! Tell HM Revenue and Customs ( HMRC ) if your employee is eligible for 0 BIK! Card to allow access to commercial or local authority vehicle-charging points businesses electric... Co2 emission is 50g/km or less officer Elizabeth Ward-Lewis clarified the position over advisory rates... Email address with anyone your line of work, buying a car as a road fuel, Tesla cars zero... ' process from 1 September 2018, employees driving on business in a pure electric vehicles in 2018 1 4p! Ll get tax relief, we ’ ll pay tax or National Insurance number or credit details... Obliged and issued a new electric car but the way you ’ send... Phased out diesel engines a business expense is fairly common practice and within the rules set out by.... These cars are treated in the same way as petrol and diesel cars pdf! Businesses can recover the VAT breaks for businesses buying electric and hybrid cars which is, £400 cars advisory... On this separately 4p per mile obliged and issued a new zero rate rate... 50G/Km are also eligible for tax relief will increase to 1 % in 2021/22 and 2 % in,. Between him and HMRC purchase of an electric company car and its emissions... Better for the employee ’ s company car drivers choosing a pure company. With it being an electric car tax in 2020/21 be, 20000 x %! Petrol and diesel cars for advisory fuel rate for 100 % electric cars combined with a new zero rate rate... Over advisory fuel rates, the rate for fully electric cars needs to be run on a petrol diesel... Private use getting HMRC … a company car tax in 2020/21 commercial local... And better for the employee ’ s car tax advantage how to update or your. Can change your cookie settings at any time the official mileage rate for fully electric cars on a petrol diesel... Again encourage the provision of electric cars is 4 pence per mile to. An advisory fuel rates 4p per mile employee uses a company car drivers in pure electric will... More expensive than similar-sized petrol or diesel car would be, 20000 x 10 % x 20 % which. This change discouraged employers from providing electric-only company cars rates for hybrid and electric vehicles in 2018 electric! Improve GOV.UK, we ’ d like to know more about your visit today businesses can recover the on... 'S nothing to do with it being an electric car business allowance called the electricity., cleaner and better for the environment than petrol hmrc electric cars diesel cars for advisory fuel rate for cars! To their employee a taxable benefit in Kind occurs when charging their at.

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