Tag Archive: company car tax

New guidance from HMRC on home-charging of company electric and hybrid vehicles

Posted 7th November 2023 at 12:41 pm

HMRC has recently provided amended guidance on the tax treatment of the costs of charging company cars and vans at home. Where reimbursed by the employer, the costs of charging electric and hybrid company vehicles at home are now treated as a tax-free benefit, in contrast to their previous treatment as taxable earnings. HMRC has updated the EIM23900 manual to reflect this revised guidance. Section 239 ITEPA 2003 details an exemption on payments and benefits provided in connection with company cars and vans. This legislative provision therefore exempts aspects such as vehicle repairs, insurance, and road tax. HMRC previously maintained that... Read more

5 reasons to switch to a hybrid or electric company car

Posted 10th July 2019 at 2:28 pm

1. Significant tax savings From April 2020, as a move by the government to encourage the switch to low emissions vehicles, the taxable benefit on company cars will change significantly. Hybrid plug in vehicles benefit in kind rates will drop further. As an example, a higher rate taxpayer will pay almost £5,000 tax per year on a BMW 320d, whereas a driver of a BMW 330e with a petrol engine and battery with up to 37 mile range will pay under £2,000. Fully electric vehicles take this further with benefit in kind rates of 0% for 2020/21, 1% for 2021/22... Read more