The sale of electric and hybrid cars have seen a massive boom over the last couple of years. Some people buy these cars as an eco-friendly alternative to the large petrol engines and soon to be phased out diesel engines.
Their increasing popularity saw HMRC introduce mileage reimbursement rates for hybrid and electric vehicles in 2018. Find out more about the benefits and mileage rates for electric vehicles.
Does the government offer grants for electric vehicles?
The UK government does offer a grant for those buying electric vehicles, though the transport secretary Grant Shapps has indicated these could be scrapped. For cars, the maximum grant available is £3,500, which is deducted by the dealer or manufacturer at the point of sale.
Whilst the grant can’t be used for used vehicles, there are grants available for other types of vehicle, such as vans and motorcycles. Check the full list of vehicles eligible for the plug-in grant.
Can I still claim back mileage expenses for my electric or hybrid car?
HMRC do offer mileage expenses for business travel, though different rules apply depending on who owns the car – which can make it difficult to work out!
Mileage rates for employees using a company car
Employees who drive a company car are paid mileage based on the size and type of engine.
The mileage for petrol, diesel and hybrid company cars in this category is paid at the Advisory Fuel Rates.
If you use a personal vehicle for business or your employees use their own car for your business, the rates are a bit different. This is because the expenses don’t just cover fuel, they also cover the cost of running the car too.
These are known as Mileage Allowance Payments. The rates are based on the type of vehicle which is used, and how many miles per year are traveled.
Getting help with mileage claims
As you can see, the rules are a bit complicated! Many are calling on the government to put a more straightforward method of working it all out in place, but until that happens, the best thing you can do is get the help of an expert. If you have an accountant, make sure you get their advice before claiming for anything.