Electric cars have become more popular among businesses as they can save money on their motoring costs. With the use of an electric car for business purposes, businesses can save on lease costs, VAT, and dividend tax. Additionally, the company car tax for fully electric cars is around £400 a year, which is much lower than petrol or diesel cars.
However, one thing that many people don’t realize is that businesses can claim mileage for charging their electric cars. The government gives a rate of 5p-a-mile back for the electricity used to charge the car for business journeys. But due to the increase in electricity prices, this rate might not be enough to cover the actual cost of charging the car.
Fortunately, businesses can override the government rate with their own rate, as long as they keep the calculations. For instance, the actual cost of charging an electric car is more like 17p-a-mile. So businesses can use this rate instead of the government rate to more closely represent the actual cost of charging the car for business purposes.
Electric cars are an attractive option for businesses looking to save money on their motoring costs. And with the option to claim mileage for charging the car for business journeys, businesses can further reduce their expenses. By using their own rate for the cost of charging the car, businesses can ensure that they are accurately claiming for their expenses.