Mileage payments re: Electric cars

VAT

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An electric car may of course be owned by a company and provided to an employee/Director for business use and/or owned by an employee/Director personally and used for business purposes

I understand the mileage rate for company cars is 4p and that payments at the 45p/25p can be made re: personal ownership, but how does the VAT work for both bearing in mind VAT is only charged at 5% on electricity?

Is it as simple as 500 miles paid to someone for their personal car would be 500 x 45p = £225 which would include 500 x 4p / 21 = 95p of VAT @ 5%

It would work the same for a company car but the gross payment would be £20 with 95p of VAT?

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By VATs-enough
11th Oct 2021 13:23

If the car is being charged at home by the employee, there can be no VAT claimed regardless of who owns the car, and regardless that the car is used for business mileage.

The supply of electricity is to the homeowner not the business .

VAT is charged at either 20% or 5% by the electricity provider subject to the status of the customer and the de miminis for such supplies.

Similar threads a few days ago, scroll down Any Answers

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Replying to VATs-enough:
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By Jigs
11th Oct 2021 14:35

Thanks, but couldn't see the thread?

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Replying to Jigs:
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By Hugo Fair
11th Oct 2021 15:28
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