You aren't buying the car, those rates are for company owned vehicles, so you have no expenditure. You pay the BIK.
EV general discussion
- Thread starter Ricochet J
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You aren't buying the car, those rates are for company owned vehicles, so you have no expenditure. You pay the BIK.
I think Jez owns his own vehicle and is only paid for fuel - Jez is that right?
If not, then yeah.
Bear in mind petrol advisory rate only just dropped to 17p when fuel prices dropped, it's been wobbling between 20p and 22p for years prior. Our company pay the advisory rates for anyone with a company car or car allowance (using 45p/25p regime for those doing sporadic business miles)
My business mileage payments cover my entire fuel expenditure, business and personal, due to my vRS only costing me 15-16p per mile in fuel (or more recently a bit less, with lower fuel price). Add in the tax relief I can claim vs the 45p/25p rates because it's my own car not company, that's a bit sweeter again.
I don't think i'd 'make money' on EV mileage payment the same way, then again, my overall fuel bill would be less, so it'd probably even out a bit.
My business mileage payments cover my entire fuel expenditure, business and personal, due to my vRS only costing me 15-16p per mile in fuel (or more recently a bit less, with lower fuel price). Add in the tax relief I can claim vs the 45p/25p rates because it's my own car not company, that's a bit sweeter again.
I don't think i'd 'make money' on EV mileage payment the same way, then again, my overall fuel bill would be less, so it'd probably even out a bit.
No, it is very common that companies will usually use (or at least this is the norm in the IT consultancy world) to receive an allowance for a car, and then a rate based on the advisory rate for all miles traveled. My fuel costs are a relation between what is paid to me, and what i pay out.
I am just pointing out that for me, and all of my colleagues and peers in this industry, who are in the same situation (with slightly differing company policies, granted) that if an internal change were to take place to cater for EVs at that advisory fuel rate, then we'd all be a bit stuffed with an extremely expensive and pointless EV to deal with.
A bit of an unknown for everyone in this boat....
Exactly this. The EV rate at 4ppm is one which i have yet to be heard of being used.....yet.....(i had to look it up!) You can bet that companies will start to adopt it if they see a large EV uptake.
Our company policy has been to reimburse 'Full EV' business miles at 4ppm since sometime in early/mid 2019 I think.
Hybrids get petrol rates, so those were predictably quite popular among company car users and car allowance users alike.
I suspect once more useful EVs appear on the company car list then the hybrid company car drivers will dwindle. Car allowance users will probably stick with hybrids though, as they'll not be worried about BIK.
It’s also 136hp vs 400hp and the ipace is a much bigger car.I know right, my battery is less than 50% of the size and it goes just as far.
The point was apparently people who have sunk lots of money into an EV are biased, so the comparison was not that of the vehicle.
I know which I’d rather drive !
Interesting. Ours is still fairly basic (and favourable, i guess) in that we get a flat 25ppm (linked to the advisory fuel rate, but always above, it does go up and down) when in receipt of a car allowance or company car (i'd never be interested in a company car). Hybrids are popular as they get the same rates as you say...
All of this can change at the drop of a hat, though. It makes choosing to opt into an expensive EV quite a challenge.
AMAP rates for personal vehicles used for business miles is identical, so maybe people should start refusing car payments, and company cars and get paid to use your own car. If you did 30k business miles per year, you get £0.45 x 10,000 ,and £0.25 x 20,000 = £9,500, but probably only spend £1,875 on fuel (4mpkWh at 25ppkWh), you could make real money given how much better the servicing is. You could get a nice shiny Tesla Model 3 for free over the course of 4 years. 
AMAP rates for personal vehicles used for business miles is identical, so maybe people should start refusing car payments, and company cars and get paid to use your own car. If you did 30k business miles per year, you get £0.45 x 10,000 ,and £0.25 x 20,000 = £9,500, but probably only spend £1,875 on fuel (4mpkWh at 25ppkWh), you could make real money given how much better the servicing is. You could get a nice shiny Tesla Model 3 for free over the course of 4 years.
In an ideal world, sadly i am yet to see many companies that don't shift staff onto an allowance or car when based permanently at client sites. A Model S 100 would cover my usage with 100% home charging, so you can slash that KWH rate down to around 10.5p/KWH too. Sadly though, mileage is unpredictable (look at what Covid has done), and the basis for an EV working is high mileage use....add in also that i am yet to know anyone who is paid at those rates for 30k/year...
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Yeah its not going to work for all depending on personal circumstances. I remember my mater around 25 years ago was paid a 50p per mile rate for every business mile he did in his own car and used to do around 40,000 miles per annum. He made so much money out of the extra over and above the cost of the fuel and car that he said that every two years it had paid for the car and that whatever he sold the car for was his "profit" and he just bought a new car and repeated. A very generous scheme, granted but a EV would be no good to him (unless they kept paying 50p per mile).
My finance a few years ago was in a similar situation to yourself and by choosing the right car (which did between 50 and 60 mpg) she used to make a very tidy profit from the fuel and the tax relief and came very close to paying for her entire car costs.
If you own the car you get paid the same regardless, so your mate would be in the same position. If it is a company owned, or funded car then that is different. Look up AMAP if you don't know how it works.
And if that was now, that would be the same.
It’s no problem with a Tesla. The other chargers aren’t the best and I would never buy an ev unless I had the backup of a decent charging network.
I don’t understand why they are so frequently broken. Is it poor quality chargers or can the people installing them just not be bothered or what?
Because the average owner doesn’t need to do this kind of thing.
This is in effect, entirely discretionary. You MIGHT get paid the same regardless. No company is obliged to pay you that rate, they're simply the upper limits which are tax free, but a company could still choose to pay you 20p or 60p. Getting paid less means you can claim tax relief on the 'lost amount' and getting paid more means you'd get taxed on the 'extra over'.
Most companies won't pay less because it's highly offputting to prospective employees, nor will they pay more because it's not much of an incentive.
These rates also 'apply' to people in receipt of a company car allowance, as that doesn't actually have any official standing in tax terms, it's just extra salary however most companies will use the 'company car rates' in this scenario (or a derivative thereof) and then it's on the employee to claim the appropriate tax relief.
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Who are all these people spending 30 grand plus on cars they barely use to go further than Tesco?
Wouldn't something more cost effective like a private chauffeur be a better option?
The entire '5,000/8,000 miles per year' lease market says hello
Average mileage in 2018 was 7,600 (from a quick google) - if we were conservative and said someone used their car 300 days a year (i.e. roughly 6 days a week on average with a couple of weeks off) that's 25 miles per day. These people could probably charge once a week from home and never have to charge anywhere else.
Most people commute to and from work no?
average mileage is 10k
Double it 20k that’s what 75 miles a work day? You can never go near a charge station and do 20k a year.
How many miles do you think someone needs to do to drop 30k on a car and we can work back from that.