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