How to Claim Mileage on your Electric Car
Electric Car Savings

How to Claim Mileage on your Electric Car

Over recent years, we have all been trying to do our bit for the planet. By buying an electric car, we can reduce carbon emissions, but we can also save money.

The amount of people using electric cars has grown massively over the last couple of years, there are now around 6.8 electric vehicles in use globally.

If you’ve already taken the plunge and purchased an electric car, you may be wondering how you can claim mileage if you use your car for business purposes.

How Do You Claim Mileage?

If you use your own car, electric or otherwise, for business purposes, you can claim your mileage back and your employer is allowed to refund you the cost of your mileage. Employers can reimburse employees if they use their private vehicles for work outside of their normal commute.

To claim your mileage allowance, all you need to do is the following:

  • Record your mileage and your trip details (was it visiting a client, or attending a meeting?)
  • Submit your claim to your employer
  • Your employer will approve and reimburse your mileage

What Can You Claim As Business Mileage?

You might be wondering what exactly classifies as business mileage and what you can actually have reimbursed. A standard commute to your place of work does not class as business mileage, even if it’s particularly long.

However claiming mileage is pretty easy, and if you use your private electric vehicle for trips such as the following, you can claim your mileage back:

  • Travelling to another office which is not your normal place of work
  • Visiting a client for a meeting
  • A work-related event, such as a workshop or seminar
  • A training course

What Is the Mileage Rate for Business Use?

The Approved Mileage Allowance Payment rates or AMAP rates vary for the type of vehicle and the miles driven.

The AMAP rates for electric vehicles are as follows:

AMAP rates for Electric Vehicles

The good news is that if you stick to the ‘approved amount’ within the tax year, your employer pays you without having to submit anything to HMRC. This, of course, makes things really simple for you as long as you can stick within the approved amount.

What is the Mileage Rate for Electric Vehicles?

It’s generally pretty simple to work out the mileage rates for your electric vehicle.

Mileage Rates for your Own Car

Since mileage rates are worked out based on the distance covered and not on fuel used, you can still claim back your mileage for your electric vehicle. To make things even simpler, the electric car mileage rate is worked out in exactly the same way as for a petrol and diesel car. So, 45p under per mile under 10,000 miles, and 25p per mile thereafter.

Working out mileage is easy for those using their own vehicles. If you travelled 15,000 miles, for example, you would calculate it the following way:

Electric Vehicle Mileage Calculations
Mileage Rates for Company Car

Things become more complicated when you’re working out mileage rates on a car that you use for business if it’s a car that is owned or leased by your employer.

In this instance, your employer will pay your travel expenses based on the ‘Advisory Fuel Rates’. For petrol and diesel company cars, this is worked out based on Miles Per Gallon (MPG), and for electric company cars, it is based on the Advisory Electricity Rate (AER).

The AER is subject to change, but at the moment, it is set at 4p per mile. This is the same rate no matter how many miles you do. So you could calculate your electric vehicle mileage as:

How to Claim Mileage on your Electric Car

Should You Claim VAT On Your Electric Vehicle Mileage?

If you claim your mileage expenses for business travel, your company can claim VAT for the fuel costs. For a diesel or petrol car, the full 20% can be claimed. However, this is not the same for an electric vehicle—VAT for domestic electricity is only charged at 5%.

The VAT claim for electric cars is really small—and for this reason, it may not be worth pursuing for many. For example, if you claim 5,000 miles on your electric vehicle at 4p per mile under the Advisory Electric Rate, you can claim £200. However, you would then only claim back £9.50 in VAT (the fraction is 1/21).

So, it may not be worth the effort of filling out the paperwork and dealing with HMRC.

How Do You Claim Mileage On A Hybrid Car?

If you have or use a hybrid car, which is powered by both electric and internal combustion engines, you will follow the same process as you would for petrol or diesel.

So, drivers of hybrid cars will need to work out their mileage claim using the Advisory Fuel Rate for petrol and diesel cars. There are different rates depending on your engine size and whether it is petrol or diesel. You can find the most up-to-date advisory fuel rate on the HMRC website.

Why Should You Drive An Electric Car?

Governments all around the world are promoting the use of electric vehicles (or EVs) and have brought in great incentives to introduce electric vehicles.

The UK government has planned to ban the sale of diesel and petrol cars by 2030. They’re even offering grants of up to £2,500 for people purchasing electric cars.

While 2030 may seem like a long way away, everyone will need to make the switch at some point.

Aside from the pressures of government to switch, there are a heap of other benefits to driving an EV.

Reduce your carbon footprint

As we all know by now, electric cars are much better for the planet. They produce zero tailpipe emissions, making them a much greener option than diesel or petrol cars. You’ll even be making a difference if you use a hybrid vehicle, since these also produce zero emissions when driven on electric mode.

Fast and easy to charge

One of the main questions people have about electric cars is regarding the charging. How quickly do they charge and how expensive is it?

How long it takes to charge really varies on the model and the charger you use. You can purchase rapid charges which you’ll really notice a difference with. However, typically, you can charge an electric car to full capacity within around 5-14 hours.

In terms of expense, electricity is much cheaper than fuel. You will also be eligible for a government grant of up to 75% off, or a maximum of £500 for the setup of your at-home charger setup under the Electric Vehicle Homecharger Scheme.

Charge at home

You also then have the added benefit of being able to charge your car at home. You no longer need to locate the nearest gas station and work out if you’ll make it there without breaking down. You can simply charge your car up overnight and have it ready to go when you are.

Cheaper to maintain

EVs are also cheaper to maintain. Since an electric motor is less susceptible to wear and tear, you’re less likely to have issues.

Quieter and more enjoyable driving experience

One of the first things people notice when driving an electric car is how quiet it is, which many generally enjoy. Electric vehicles have instant torque, which means you can power up at the push of a button.

Are Electric Cars Cheaper Than Petrol or Diesel Cars?

While the car itself may not be cheaper than buying a petrol or diesel car, since, like any other vehicle, the cost of an electric car varies a lot on the make and model. A fully electric car is an investment. It offers drivers a cheaper and more efficient way to drive around.

The cost of running an electric car is much cheaper over the long run than a petrol or diesel car. The cost of electricity is low and the maintenance costs are less than you would spend on petrol or diesel. This is because fully electric cars are built to be as efficient as possible.

There are three components to an EV—the onboard charger, inverter and motor. This means that there is less susceptible to wear and tear. So, you’ll not need to get your car serviced as often or have to fork out for expensive repairs.

Claiming mileage on your electric car is simple, as we’ve laid out above. And, the benefits of driving an electric car are endless. Check out our products here, and make charging your EV faster and more efficient than before.

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