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Company paying for home charging

How would you split the electricity used on a home charging point so the company could pay for it

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We have a client whose company is paying for the installation of a home charger for the director, how would the electricity used for charging the car be accounted for to enable the company to pay for this.

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By 356B
29th Nov 2021 10:03

Install a separate meter?

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Replying to 356B:
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By David Ex
29th Nov 2021 10:38

356B wrote:

Install a separate meter?

Exactly. Either you can isolate a particular usage to measure it or you can’t.

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Replying to David Ex:
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By CW2012
29th Nov 2021 10:43

Can you have two meters for the same property? Has anyone been down this road I'm sure that this home charging issue must have arisen before.

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By 356B
29th Nov 2021 10:49

B.M.O.s have separate meters. Take your pick of suppliers.
https://www.smartpowershop.co.uk/electricity-meters/

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Replying to CW2012:
paddle steamer
By DJKL
29th Nov 2021 13:23

Yes, you can use your own sub meter- this is not a distinct supply from say another electric supplier but merely a measure of what part of your main bill goes through the charging point. (We used to have a commercial property with one main supply and circa 30-40 sub meters which we read and used to rebill the tenants)

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By Tax Dragon
29th Nov 2021 10:47

Smart meter?

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By paul.benny
29th Nov 2021 10:50

Why would you do this? If any of the electricity is used for private mileage, it's presumably a bik. Why can't Director just pay himself an appropriate rate for business mileage.

Is there a bik anyway on installation of the home charger?

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Replying to paul.benny:
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By CW2012
29th Nov 2021 10:54

NO BIK on home charger and no BIK on the charging, this is exactly why you'd do this. Unless I'm hopelessly on the wrong track.

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By rmillaree
29th Nov 2021 11:12

CW2012
no BIK on the charging
do you have a link confirming this fact?

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By CW2012
29th Nov 2021 11:33

Provided it is paid by the employer and not reimbursed, that is how I believe it to be.

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Replying to CW2012:
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By David Ex
29th Nov 2021 11:37

CW2012 wrote:

Provided it is paid by the employer and not reimbursed, that is how I believe it to be.

That’s not what the link says (unless the employee’s home is “at work”?):

“Employer allows cars to be recharged from a vehicle charging point at work.”

If you’re relying on the employer being charged for the electricity used at the employee’s home, presumably the employer would need to be the customer for said supply.

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Replying to David Ex:
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By Tax Dragon
29th Nov 2021 11:57

Did you scroll down?

Btw, nice to see at least HMRC quotes supporting legislation. HMRC 1, Awebbers 0.

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Replying to Tax Dragon:
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By Tax Dragon
29th Nov 2021 12:09

Tax Dragon wrote:

HMRC quotes supporting legislation.

Weird how ambiguous that is. You could read adjective, noun, verb, noun. I meant noun, verb, adjective, noun.

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Replying to Tax Dragon:
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By David Ex
29th Nov 2021 12:12

Tax Dragon wrote:
<:p>Did you scroll down?

Apparently not.

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Replying to CW2012:
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By rmillaree
29th Nov 2021 12:16

CW2012
"Provided it is paid by the employer and not reimbursed, that is how I believe it to be."

It would help if you could quote the exact subsection you are referring to from link provided. (I can confirm i have scrolled down )- perhaps its me being thikko here but there are various different scenarious listed and its clear as mud to me which listed scenario you think applies to the circusmtance you are talking about!

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Replying to rmillaree:
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By Tax Dragon
29th Nov 2021 13:07

I think the table is pretty clear (and pretty good). Your difficulty, I suggest, is because you have filled in the huge gaps in the information the OP has provided, your filler is assumption and based on that you have come up with a circumstance.

Of course your assumptions may well be right. In which case I agree OP is wrong. In that circumstance.

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Replying to Tax Dragon:
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By rmillaree
29th Nov 2021 14:48

"I think the table is pretty clear (and pretty good). Your difficulty, I suggest, is because you have filled in the huge gaps in the information the OP has provided, your filler is assumption and based on that you have come up with a circumstance."

Yep agreed hence my request that op provide futher specific info. I was struggling to get to the default position that they would be ok based on the following specific comments made by the OP "no BIK on the charging" - too many blanks to fill in here.

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Jason Croke
By Jason Croke
29th Nov 2021 11:33

https://www.bvrla.co.uk/guidance/tax-vat/bik-and-home-chargepoints.html

HMRC manuals here https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim23900

From a VAT perspective, there is no VAT reclaim on home charging because supply is to home owner, not business (unless a sole trader).
https://www.gov.uk/government/publications/revenue-and-customs-brief-7-2...

Most EV chargers are on a smart meter and smart tariff, I'm on Octopus Go, 5p per kwh for 4hrs per night and it costs about a £1 per night (as I also run the dishwasher, tumble dryer and washing machine at same time at same 5p rate).

Being realistic, domestic electricity is 5% VAT rate and assuming the car is used wholly for business miles only, with zero personal use, and assuming £1 per day of electricity, that's £365 per year with a VAT reclaim of £17.38!

If we then take a view that the car is not wholly business miles only and is used for personal trips, then the VAT reclaim is even less. If an expense claim form is filed by the employee, the current advisory fuel rate for EV cars is 5p per mile (updated rates last week) https://www.gov.uk/guidance/advisory-fuel-rates

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DougScott
By Dougscott
29th Nov 2021 22:00

I looked into this fairly extensively for our company EV. For the charging to be BIK exempt then there would need to be a seperate meter and account in the company's name with all utility bills going to the company. The alternative is for the company to reimburse the user for electricity usage but this is treated as taxable income. The user can partly offset this my claiming 5p per mile for any actual business usage. Electric charging is not FUEL so there is no fuel BIK,

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Replying to Dougscott:
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By CW2012
30th Nov 2021 09:35

Thanks Doug, that's where I got to, is it just a case of having a meter attached to the charger, this isn't a separate supply so how does the billing work , the supply to the house will already be on a meter, is the charging point run off the household supply and re metered?

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