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4p a mile

So the advised government rate for mileage for a ev is 4p per mile. My current ice get 16p per mile (it costs me about 13p, so 3p a mile in my pocket). From looking around the average cost per mile on a model 3 is 3.5p per mile, so only 0.5p delta.

It feels like the ev rate is a little low. If you had to use public charging on your trip you would be out of pocket. If I had to use motor way petrol stations in my ice I would still be up.

Am I missing something?

note: I get a car allowance from work, so I only get the base rate not 45p.
 

Roy W.

Battery running low...
Jun 3, 2019
2,334
2,405
Derby, UK
So the advised government rate for mileage for a ev is 4p per mile. My current ice get 16p per mile (it costs me about 13p, so 3p a mile in my pocket). From looking around the average cost per mile on a model 3 is 3.5p per mile, so only 0.5p delta.

It feels like the ev rate is a little low. If you had to use public charging on your trip you would be out of pocket. If I had to use motor way petrol stations in my ice I would still be up.

Am I missing something?

note: I get a car allowance from work, so I only get the base rate not 45p.
Not really related to your work mileage rate, but your 3.5p a mile seems a bit high. Are you home charging? I do 95+% of my charging on Octopus GO at 5p a unit, so my price per mile is about 1.5p.

If you need an Octopus referral code (£50 bill credit) just PM me.
 
How are you using the car allowance to fund the vehicle? If you are using it to purchase or lease a vehicle in your name then is this not a personal vehicle and you are therefore entitled to the mileage reimbursement rates applicable for personal vehicles?

In that case you are entitled to claim the tax difference between your 4p and the entitlement of 45p/25p.

My understanding was that the 4p was only applicable to mileage completed in a vehicle issued by the company itself or leased under the company’s name.
 
How are you using the car allowance to fund the vehicle? If you are using it to purchase or lease a vehicle in your name then is this not a personal vehicle and you are therefore entitled to the mileage reimbursement rates applicable for personal vehicles?

In that case you are entitled to claim the tax difference between your 4p and the entitlement of 45p/25p.

My understanding was that the 4p was only applicable to mileage completed in a vehicle issued by the company itself or leased under the company’s name.
My company pays the minimum AFR/AER to employees with a car allowance. They also used to deduct the difference between AFR and the 45/25p from your tax for you if requested but you now have to claim it back yourself
 

Adopado

Well-Known Member
Aug 19, 2019
6,507
5,022
Scotland
I'm in Scotland where Public Charging is free so 2 Months in my price per mile is 0p.

Well, not all chargers are free, though in most areas the Charge Place Scotland chargers are still free but in the Dumfries and Galloway council area for example even the Charge Place Scotland chargers are no longer free ... twitter:"Please note that a tariff of £0.25 per kWh with a minimum charge of £1.50 will come into force on all Dumfries and Galloway Council charge points from Jan 7th 2019."
 

ItsNotAboutTheMoney

Well-Known Member
Jul 12, 2012
12,473
11,061
Maine
So the advised government rate for mileage for a ev is 4p per mile. My current ice get 16p per mile (it costs me about 13p, so 3p a mile in my pocket). From looking around the average cost per mile on a model 3 is 3.5p per mile, so only 0.5p delta.

It feels like the ev rate is a little low. If you had to use public charging on your trip you would be out of pocket. If I had to use motor way petrol stations in my ice I would still be up.

Am I missing something?

note: I get a car allowance from work, so I only get the base rate not 45p.
HMRC Mileage Rates for Electric Cars For 2019 | Autotrip Blog

You are missing that:
1) That is the default, tax-exempt rate
2) Employers can use a different rate
3) If employers use a higher rate, they just have to show that the electricity cost is higher.

So to get a higher rate, you'd need documentation on your charging costs.

Presumably they use 4p, because that covers economical charging.
 

pgkevet

Active Member
Jul 1, 2019
1,966
1,796
mid wales
Are you guys remembering to factor in all the other car costs?
As an example on my S: 3 yrs at 12K miles per year:
Loss of value from £94K to £40K? = £54,000
2X £320 road tax = £ .960
1 set tyres = £ 800
Tesla service charges = £ 1,200
RAC = £ ,240
Average 250 miles/100KW winter/summer and rural so no smart meters
£16/100KWH = 4x12x16 x3yrs =£ 2,304
Insurance @£400/yr =£ 1,200
Sundries - cleaning stuff, punctures etc£ 400

Roughly rounds out to £7K + depreciation = £63K = £1.75p/mile

Even if you 1/3rd price leccy and only 20K depreciation = roughly £25500 = 0.71p/mile
 
Are you guys remembering to factor in all the other car costs?
As an example on my S: 3 yrs at 12K miles per year:
Loss of value from £94K to £40K? = £54,000
2X £320 road tax = £ .960
1 set tyres = £ 800
Tesla service charges = £ 1,200
RAC = £ ,240
Average 250 miles/100KW winter/summer and rural so no smart meters
£16/100KWH = 4x12x16 x3yrs =£ 2,304
Insurance @£400/yr =£ 1,200
Sundries - cleaning stuff, punctures etc£ 400

Roughly rounds out to £7K + depreciation = £63K = £1.75p/mile

Even if you 1/3rd price leccy and only 20K depreciation = roughly £25500 = 0.71p/mile

If your getting an allowance it covers the above in theory.
 
Yeah it does seem a ridiculously low recommended figure. Hardly encourages adoption especially as you can run a reliable £10k car and come out quids in with the fossil fuel version.

some years ago the benefits of a company vehicle were made minimal through taxation etc but it was implemented such that the battering your personal car got was offset by a healthy pence per mile. Seems like going green gives you a slap. Yet another example of the government not understand EV ownership I’m sure. Haven’t done the sums myself so I may be talking [email protected] but it certainly feels that way at first glance.
 

Jason71

Active Member
May 8, 2019
4,635
5,201
Shropshire
Yeah it does seem a ridiculously low recommended figure. Hardly encourages adoption especially as you can run a reliable £10k car and come out quids in with the fossil fuel version.

some years ago the benefits of a company vehicle were made minimal through taxation etc but it was implemented such that the battering your personal car got was offset by a healthy pence per mile. Seems like going green gives you a slap. Yet another example of the government not understand EV ownership I’m sure. Haven’t done the sums myself so I may be talking [email protected] but it certainly feels that way at first glance.
Over the last few years a lot of people took "car allowances" / mileage from employers in place of a company car since it made more financial sense. Any of those people looking to get an EV in the next couple of years should probably be looking to reverse that decision with the 0/1/2% BIK coming up.
 

browellm

Active Member
Oct 4, 2019
1,409
1,526
Notts
Yeah it does seem a ridiculously low recommended figure. Hardly encourages adoption especially as you can run a reliable £10k car and come out quids in with the fossil fuel version.

some years ago the benefits of a company vehicle were made minimal through taxation etc but it was implemented such that the battering your personal car got was offset by a healthy pence per mile. Seems like going green gives you a slap. Yet another example of the government not understand EV ownership I’m sure. Haven’t done the sums myself so I may be talking [email protected] but it certainly feels that way at first glance.

A few of you seem to be missing this quote from the article:
If employees use their own electric vehicle for business, the new AER doesn’t apply. Instead, they should refer to the Approved Mileage Allowance Payment (AMAP) rates.
 
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A few of you seem to be missing this quote from the article:
If employees use their own electric vehicle for business, the new AER doesn’t apply. Instead, they should refer to the Approved Mileage Allowance Payment (AMAP) rates.
Unfortunately HMRC considers that those of us who purchase our own car but are paid a car allowance by our employer to be using a company car (ie the running costs included in the AMAP arent needed) - so the AER applies, not the AMAP. Although as stated elsewhere here, tax on the delta is recoverable
 

browellm

Active Member
Oct 4, 2019
1,409
1,526
Notts
Either:
1) Your employer provides you a company car, and you are subject to BIK.
2) Your employer provides neither a company car, nor an allowance but will pay AER rates if you use your own car for business trips.
3) You employer pays you a car allowance and a published ppm reimbursement. This may or may not be the AMAP rate, but you can claim the tax difference on them if they are below AMAP rates, or pay tax on them if above.
 
Last edited:

arg

Active Member
Supporting Member
Aug 22, 2012
1,858
1,890
Cambridge, UK
Unfortunately HMRC considers that those of us who purchase our own car but are paid a car allowance by our employer to be using a company car (ie the running costs included in the AMAP arent needed) - so the AER applies, not the AMAP. Although as stated elsewhere here, tax on the delta is recoverable

No!! HMRC considers that you are entitled to up to AMAP/45p (as shown by the fact that you get the tax back).

Your employer may have decided that they are only going to give you the AER, but that's their decision and nothing to do with HMRC since that's not the purpose for which the AER was intended (the AER is for reimbursing electricity costs to company car drivers).

So your argument is with your employer, not with HMRC, and needs to go along the following lines:
  • The variable part of running costs of a car are not just petrol/electricity.
  • (if you believe this to be true) the rate that your colleagues are getting in their petrol cars covers more than just petrol so your rate ought to cover more than just electricity in order to put you in the same position.
  • EVs are fundamentally more expensive to buy and cheaper per mile to run. They are cheating by giving you the same car allowance as your petrol colleagues, but a lower per-mile rate: if they want to benefit from the lower running costs of an EV, they should be paying you a larger allowance; if they want to treat all drivers equally then they should pay you the same mileage rate.
  • There is no tax implication to paying you the same rate as the petrol drivers, since they are allowed to pay up to 45p anyhow.
 
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