HMRC confirms 15p charges for electric cars from | Tech News

HM Revenue and Customs (HMRC) has confirmed 15p per mile charges for drivers of electric company cars from June 1. The charges are HMRC’s new advisory electric charges that apply for the three months from June till September 1, after which new charges will take impact for the next quarter. The charges solely apply to drivers who use a company car and are used to reimburse staff for business journey, or when staff need to repay the price of fuel used for personal journey.

HMRC conducts a review of these charges each quarter firstly of March, June, September and December, with the most recent charges now in impact. Advisory fuel charges have elevated for petrol, diesel and liquified petroleum gasoline (LPG) on this present quarter to replicate hikes in fuel costs because the Iran warfare broke it.

It comes after average petrol costs reached their highest stage in three and a half years between March and June, with the wholesale price of petrol in May surging to more than 5p above the earlier high of the Iran oil disaster.

But regardless of this, advisory electric charges for totally electric automobiles stay unchanged on this present quarter, regardless of whether or not drivers use home or public chargers for their company car.

HMRC has confirmed that the charges for electric car drivers who use home chargers stay at 7p per mile, whereas those that use public chargers for their company car face 15p per mile charges. Hybrid cars are handled as both petrol or diesel cars for advisory fuel charges.

The advisory electric fee for totally electric cars is calculated utilizing electrical price knowledge from the Department for Energy Security and Net Zero, Office for National Statistics (ONS), car electrical consumption charges from the Department for Transport (DfT), and annual car gross sales volumes to companies (Fleet Audits average for the final three years).

HMRC stated: “The ‘Domestic electricity cost per kilowatt-hour’ is the Department for Energy Security and Net Zero annually published figure, uprated with the latest estimate of electricity prices from the Office for National Statistics.

“The ‘slow or fast public charge cost per kilowatt-hour’ is the Zapmap public charging price index monthly published figure for slow or fast chargers (charging speed less than 50 kilowatts), uprated with the latest estimate of electricity prices from the Office for National Statistics.

“For journeys where a company car is charged at both public and residential locations, you can apportion the mileage based on how much charging happens at each place. The apportionment calculation should be fair and reasonable.

“A higher amount than the advisory rates can be used as long as you can show that the fuel cost per mile is higher. Therefore, if the public charger used is higher in cost per mile than the new advisory rate introduced for public charging, a higher rate can be used as long as you can show the cost per mile is higher.”

Listed are the new advisory electric charges for totally electric cars from June 1, as confirmed by HMRC: