What is the HMRC mileage rate for electric cars?

Use of personal cars: HMRC electric car mileage rates U.K.
The HMRC (the U.K.'s tax authority) has currently set this rate at 45 pence per mile for the first 10,000 miles, and 25 pence per mile for any additional mileage.


How do you calculate mileage for an electric vehicle?

After an EV's battery is drained, it's charged back to 100% while a meter monitors exactly how much energy (measured in kilowatt-hours) is used. Those kilowatt-hours are divided by the mileage traveled during the test to reflect the energy used per mile of driving.

Is mileage different for electric cars?

Yes, mileage does matter on an electric car though not as much as on a traditional gas-powered vehicle. Mileage is an indicator of how much the car has been used, so lower milage cars mean the car is useable, but it's still relatively “new”.


What is a reasonable mileage rate to charge UK?

66p per mile up to 1,000 miles, 54p per mile up to 7,500 miles, and set the passenger mileage rate after 8,500 miles at 16p per mile. HMRC rate for the first 10,000 miles from 1 April 2022. All other mileage remained at HMRC rates.

What is electric mileage?

MPGe is an abbreviation for “miles per gallon-equivalent.” In other words, it's the electric vehicle version of mpg. MPGe was introduced by the Environmental Protection Agency (EPA) in 2010 as a means to compare the amount of energy consumed by vehicles using alternative fuels to those of gas-powered engines.


ELECTRIC CARS AND HMRC – ARE THEY TAX DEDUCTIBLE IN THE UK?



Can you claim 45p per mile for an electric car?

The business mileage rates for electric cars use the Approved Mileage Allowance Payments (AMAPs) which is currently 45p per business mile for the first 10,000 miles, and 25 per business mile thereafter.

Can I claim mileage on an electric car UK?

Essentially, where the employee uses their own car the mileage rate for a fully electric car is the same as for a petrol or diesel car. This is set at 45 pence per mile for the first 10,000 miles, then 25 pence per mile for any additional mileage.

What does HMRC 45p per mile cover?

FAQ. What does the 45p mileage allowance cover? The mileage allowance is meant to cover all costs associated with using your vehicle for business purposes, such as insurance, road tax, depreciation, fuel, oil and maintenance.


What is a reasonable car allowance UK 2022?

Firstly, you need to decide how much you're willing to provide to the employee in order for them to purchase a vehicle. A recent survey found that the average car allowance in the UK is as follows: £10,300 for company heads (directors & c-suite individuals). £8,200 for senior managers.

Can my employer pay me less than 45p per mile?

Do companies have to pay 45p per mile? Companies are not obliged to pay out the advisory HMRC mileage rate of 45p per mile for cars. They can choose the rate they want to reimburse employees at. Normally, this rate is lower than the one set by HMRC, as a higher rate will end up being taxed on the excess.

What is the mileage limit for electric cars?

Generally, today's electric cars can usually travel between 150-300 miles on a charge, which should be more than enough for both casual drivers and people who commute long distances every day for work.


What is the average mileage per charge for an electric car?

All-electric vehicles can typically go 100 to more than 400 miles on a single charge. PHEVs can typically go 15–50 miles on battery power alone; their overall range is determined by the fuel tank capacity because the engine kicks in when the battery is depleted.

What's the maximum mileage for an electric car?

What is considered high mileage for an electric car? Reviewed by Shannon Martin, Licensed Insurance Agent. Much like gas-powered cars, electric cars made today are generally considered good for about 200,000 miles, but the longevity of an electric car's battery system depends on more than just miles.

How much does it cost to drive 100 miles in an electric car UK?

It costs £12.00 to drive 100 miles in an electric car

The average electricity cost in the UK is 34p per kWh.


What is a healthy monthly car payment?

Financial experts recommend spending no more than 10% of your monthly take-home pay on your car payment and no more than 15% to 20% on total car costs such as gas, insurance and maintenance as well as the payment.

Which is better car allowance or mileage reimbursement?

Advantages of mileage reimbursements over car allowances

Again, it's simple: Mileage rates are easy to administer, and any rate under the IRS rate is non-taxable. The tax-free payments are the main advantage over car allowances.

Can you haggle car price 2022?

Can you negotiate new car prices in 2022? Our YAA Auto Experts help hundreds of car buyers every week, and they gather real-time insights of the market along the way. The market is changing, and both new and used cars are more negotiable than at any time in 2022.


What mileage can I claim from HMRC?

UK mileage rates can differ, however, HMRC advisory fuel rates state that in most circumstances you can claim business mileage at a rate of 45p per mile for the first 10,000 business miles in a year and then 25p per mile thereafter.

Can I claim more than 45p per mile?

If the payment is more than 45p per mile, the excess is a benefit in kind charged on the employee and usually taxed via the employee's PAYE coding. For NIC purposes the excess is charged to Class 1 NIC in the same way as the payment would be if it were a bonus or salary.

When did mileage change from 40p to 45p?

When did the mileage rate change to 45p? The mileage rate changed from 40p to 45p back in the 2010-2011 tax year. The mileage rate has not been changed since.


Can you claim 100% on electric cars?

From 1 April 2021, pure zero emission car can qualify for a 100% first year allowance (FYA) and the car is purchased new and unused. A similar 100% FYA applies for zero emission vans, where the vehicle is purchased new and unused before 1 April 2021.

What are the tax benefits of buying an electric car UK?

Tax on benefits in kind for electric cars

There's currently zero tax on Benefit in Kind (BIK) during 2020 / 2021 for hybrid vehicles with emissions from 1 - 50g/km and a pure electric range of over 130 miles. The electric car tax on BIK rate will increase to 1% in 2021 / 2022 and 2% in 2022 / 2023.

Can I claim 100% capital allowances on an electric car?

From April 2021 a first-year capital allowance of 100% of the cost can be claimed on all new and unused cars with zero emissions. This means the company can set the full cost against its taxable profits in the year of purchase, creating a saving of 19% corporation tax.


Can I claim for charging my electric car at home?

Yes, you can, but there are a few options to consider. Employers can use HMRC's Advisory Electricity Rate (AER), however, it sits at 8p per mile, which does not accurately reflect genuine charging costs, leaving drivers shortchanged.

How much does an electric car add to your electric bill UK?

What does this mean for electric car owners? The price cap on electricity will go up from £0.21 to £0.28 per kWh in April 2022. This means it will cost more to charge your electric car. For context, a standard Nissan Leaf has a 40kWh battery, meaning currently it will cost you up to £8.40 to charge it from 0% to 100%.