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TaxRobin, Tax Consultant
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Experience:  International tax
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Robin First dealings today with an employee who wants to

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Hi Robin First dealings today with an employee who wants to have a hybrid car as his next company car. I have read EIM23900 but also read other articles that don't quite follow that line. My questions - can the company provide electricity charging to the employee at work for his company car without him incurring a BIK or does the charge point need to be available to the public; and if he has a charge point installed at home, can the company reimburse his electricity cost or does this incur a BIK charge on him? Thanks Gareth Chapman
HelloThe best we can go by is the information thus far. company cars which are fuel-electric hybrids or all-electric and have a rechargeable battery, the list price of the vehicle must always include the cost of the battery, whether or not it is leased separately. If an employer leases a battery for an employee’s company car, there is a taxable benefit, which would normally be based on the cost to the employer. 5.4 As electricity is not a fuel, there is currently no fuel benefit charge. This means that if an employer allows an employee with a company or personally owned car to top up the battery of their BEV, PHEV or E-REV at work, this does not fall under car fuel benefit charge. 5.5 In relation to electric car charging stations, the provision by an employer of a charging station for an employee to charge a private electric car gives rise to a benefit-in-kind. In general terms, a benefit-in-kind is liable for tax and National Insurance contributions.If, however, the employer considers the benefit to be a ‘trivial benefit’, the employer can apply to HMRC for agreement to exclude the benefit from reporting grounds.The Government recognises that this is a developing area and keeps the tax rules under review to ensure that they remain effective in promoting take up of cleaner cars but also remain consistent with the Government’s wider deficit reduction plans.
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