ADVERTISING FEATURE
Can I use an electric car as a pool car?
Yes, but the car must still meet the pool car rules in full. There are no specific exemptions to the rules for electric cars. To qualify as a pool car all the following conditions must be satisfied in full:
( a) It is available to, and used by, more than one employee.
( b) It is made available, in the case of each of those employees, by reason of their employment.
( c) It is not ordinarily used by one of them to the exclusion of the others.
( d) Any private use by an employee is merely incidental to their business use of it.
( e) It is not normally kept overnight on or near the residence of any of the employees unless it’ s kept on premises occupied by the provider of the car.
If the car is stored most nights at a residential address( e. g., for charging), it would not normally qualify as a pool car. However, as you can see on the previous page, the taxable benefit for an electric car is much lower than a petrol / diesel car.
Can my company pay for a charging point to be installed at home?
Yes! If used for a company car, a business can pay for a charging point to be installed at the employee / director’ s home without incurring a tax charge on the employee. The business can also claim tax relief on the cost.
Can an employee / director claim for the cost of electric if the car is charged at home? I
If the car is charged at a home charging point, an employer if it wishes can either:
• Reimburse an employee for the cost of the electric used for business journeys without the employee incurring a tax charge( i. e., electric used for commuting or private journeys is not reimbursed), or
• as an alternative, mileage at the HMRC company car advisory fuel rate( currently 5p per mile for electric cars) can be used for calculating the cost of business journeys.
Electric bikes
If you are considering commuting by bike as an alternative option to driving, pedal assisted electric bikes, if used mainly for commuting, qualify for the cycle to work scheme. For electric motorbikes, these do not currently have any specific benefits different to a standard motorbike.
E-cargo bikes( which are often seen as an alternative to the“ white van”) also qualify for the 130 per cent Super Deduction if acquired before 1 April 2023. Thereafter, they will qualify for a 100 per cent deduction against taxable profits as part of the Annual Investment Allowance. In addition to the tax benefits, grant funding may also be available making them a very cost-effective alternative to the van.
The Legal Bit
We hope that you’ ve found this information helpful, but please note that though it is based on the latest legislation, it is for guidance only and cannot be construed as advice. We would always recommend that you consult a qualified accountant or tax advisor before taking any action based upon the contents.
The good news is that the Richardson Swift team are expert chartered accountants and tax advisers and would be happy to help your business navigate the taxation landscape, whether you want to improve your green credentials or maximise profits generally.
Want to know more? Get in touch for fresh ideas.
t: 01225 325580 e: hello @ richardsonswift. co. uk w: richardsonswift. co. uk
THE BUSINESS EXCHANGE 2022 17