Mileage allowance on my electric car?
Hitting the road for work in your zippy electric vehicle (EV) is not only good for the environment, but it can also be good for your wallet – thanks to mileage allowance claims! But navigating the world of EV tax deductions can feel like deciphering a cryptic code. Fear not, eco-conscious commuters, for this comprehensive guide will shed light on the mysteries of claiming mileage for your electric car, with a particular focus on the all-important 9p rate.
Is 9p the Magic Number?
Yes and no. The 9p figure you might have encountered refers to the Approved Mileage Rate (AER) set by HMRC for fully electric cars as of April 2023. This essentially means that for every business mile you clock in your EV, you can claim 9p as a tax deduction against your income.
However, it's important to remember that the 9p rate is just one piece of the puzzle. Here's a deeper dive into the world of EV mileage claims:
Claiming Essentials:
Track Your Travels: Just like with petrol cars, meticulous record-keeping is key. Log your business journeys with dates, destinations, and mileage using a trusty logbook or a handy HMRC-approved app.
Business Only: Remember, honesty is paramount. Only claim for genuine work trips, not your daily commute to the office.
Home Charging Deductions: While you can't directly claim the entire cost of your home electricity, you can claim a portion based on the 9p AER and your mileage. HMRC provides handy formulas and calculators to make this process easier.
Public Charging Proof: Keep those public charging station receipts handy! They can be used as supporting documentation for your mileage claim, especially if your home electricity bill doesn't differentiate between business and personal charging.
Beyond the Basics:
Going Green, Getting Rewarded: Some forward-thinking companies offer even higher mileage allowance rates for EVs, incentivizing eco-friendly choices.
Stay Updated: Policies can change, so keep an eye out for adjustments to HMRC rates and your company's mileage allowance policy.
Remember, claiming a mileage allowance for your electric car is a great way to offset the cost of driving for work. By understanding the rules, keeping good records, and staying informed, you can confidently navigate the world of EV tax deductions and fuel your financial well-being.
Bonus Tip: Consider using an HMRC-approved mileage tracking app specifically designed for EVs. These apps can automate calculations, streamline your claim process, and even help you optimize your charging habits for maximum tax benefit.
This is a complex area, so please remember If you have any questions do not hesitate to call me on 01442 828006 or email