Plug-in Vehicles

Integration and taxation

Karl AndersFleet Consultant

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Other Considerations

• Driver acceptance• Company Car Tax• Tax treatment - issues relating to EVs

‒ BIK for charging at work?‒ Installation of domestic charge points?‒ Mileage reimbursement?

• Smarter driving• Hints and tips• Environmental issues

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Driver acceptance

• Drivers key to successful implementation

• Early involvement is beneficial‒ Communication of rationale‒ Use demonstrators‒ Choose drivers carefully

• Driver training ‒ Alleviates range anxiety‒ Assists understanding / make the most of the vehicle

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Company car tax table

CO2 Emissions 2016 - 17 2017-18

(g/km) Petrol Diesel Petrol Diesel Petrol Diesel P & D P & D0-50 0% 0% 0% 0% 5% 8% 7% 9%51-75 5% 8% 5% 8% 9% 12% 11% 12%76-94 10% 13% 11% 14% 13% 16% 15% 15%95-99 11% 14% 12% 15% 14% 17% 16% 16%

100-104 12% 15% 13% 16% 15% 18% 17% 17%105-109 13% 16% 14% 17% 16% 19% 18% 18%110-114 14% 17% 15% 18% 17% 20% 19% 19%115-119 15% 18% 16% 19% 18% 21% 20% 20%

2013 - 14 2014 - 15 2015 - 16

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Tax – issues relating to EVs (ICAEW tax guidance note 2011)

ProvisionCompany car made available for

private useEmployee’s car used for business

Employer allows cars to be recharged from a vehicle charging point at work

No taxable benefit. Electricity does not sit within the meaning of fuel so the Fuel Benefit Charge does not apply. And there is no further benefit charge as s239(4) ITEPA 2003 specifically excludes a benefit connected with a taxable car.

Taxable benefit based on cost to the employer.

Employer pays for a vehicle charging point to be installed at the employee’s home.

No taxable benefit because of s239(4).Taxable benefit based on cost to the employer.

Employer pays for charge card of £100 per year to allow individuals unlimited access to local authority vehicle charging point.

No taxable benefit because of s239(4).Taxable benefit based on cost to the employer.

Manufacturer leases battery separately to the car

Cost of battery forms part of the list price – car will not go without it so it must be integral (like wheels).

Not taxable.

List price includes cost of battery Use list price  

List price does not include cost of battery Use notional list price  

Employer pays to lease a battery for a privately owned car

Not applicable Taxable benefit based on cost to employer

 Mileage allowances

None – Advisory fuel rates are based on the average price of fuel per mile – electricity is not a fuel

Authorised Mileage Allowance Payments (AMAPs), and, if the employer pays less than the published rates, may claim tax relief under Mileage Allowance Relief (MAR).

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Mileage Rates

• Business mileage reimbursement‒ HMRC position:o Do not currently consider electricity to be a fuel

• Interim approach‒ Just like ICE - different by vehicle‒ Take a sensible approach‒ Calculate a ppm by:o Taking an appropriate cost of domestic electricity (15p/kwh?)o Use an indicative ‘real world’ consumption (Wh/km)

‒ Advise your local tax office

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Smarter Driving

• Driving style affects performance

• Smarter Driving techniques can:

‒ Reduce electricity consumption by 16%‒ Equates to a 20% increase in range

• Key is use of regenerative braking

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Hints and tips

• Use special features (if available)‒ Pre-heat‒ Pre-cool

• Differing electricity costs at different times of the day

• Opportunity charging

Are EVs actually green?

• Zero tail pipe emissions not zero CO2

‒ Zero local air quality emissions (NOx & Particulates)

• Low carbon electricity production increasing‒ Well to wheel emissions will reduce

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SMMT ‘Electric Car Guide 2011’

Pure-EV ICE

Average ‘tank to wheel’ 0g CO2/km 132g CO2/km

Average ‘well to tank’ 77g CO2/km 14.7 - 29g CO2/km

Average ‘well to wheel’ 77g CO2/km 147 – 161.3g CO2/km

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Additional sources of information

EST Support

How can we help?

• Plugged-in Fleets Initiative (PIFI 100)

• Links to EV partners‒ Infrastructure / Site surveys‒ Route mapping and optimisation

• Smarter Driving (EV and conventional)

www.energysavingtrust.org.uk

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Thank you