COMPANY car drivers looking to go electric are being hampered by HM Revenue & Customs (HMRC) because of a refusal to alter tax-free mileage rates.
Because of recent significant increases in electricity costs, there is a gap between what an EV driver can claim and what their employer can reimburse tax-free.
HMRC guidelines allow drivers to claim a maximum of 5p per mile to reimburse them for business travel, while current electricity costs are costing drivers around 12p per mile.
DriveSmart has calculated the cost of recharging nearly 500 electric cars and compared these figures to HMRC’s reimbursement rate, with cars costing more to recharge than the cost per mile HMRC allows employers to reimburse tax-free.
Of the nearly 500 cars analysed, only four fall within current regulations that mean drivers aren’t being penalised when covering business mileage in their electric car.
Of these four models, three are the Citroen Ami quadricycle, which is designed for urban routes and has a relatively short range. The only electric car that comes in under the current pence per mile restrictions is the Tesla Model 3 (Standard Range) with a range of 305 miles.
The greatest difference between cost per mile (based on 28p per kWh electricity costs and WLTP range) and the 5p per mile HMRC figure is the Audi e-tron SUV, costing 12.15 pence per mile.