Travel expenses for electric or hybrid cars

Unfortunately HMRC does not consider the cost of charging your electric or hybrid car to be a fuel expense.

So what expenses can you claim if you use an electric or hybrid car for business travel?

Travel expenses for electric or hybrid cars:

electric and hybrid cars

Well what expenses you can claim depend whether or not you are paid a car allowance from your employer, or by your company.

Car allowance paid

Electric car

If you are paid a car allowance from your employer, or by your company, then you can claim expenses based on one of the following methods:

  • Claim the relevant fuel advisory rate based on the lower of the petrol or diesel tariff as per HMRC's guidance (see here)
  • Claim the calculated cost of the electricity used from a domestic supply to charge the car
  • Claim a rate that can be calculated accurately as the true cost to you

Hybrid  car

If you are paid a car allowance from your employer, or by your company, then you can claim expenses based on one of the following methods:

  • Claim the first 20 to 30 miles of each trip using the cost of the electricity then pay the full advisory fuel rate for the remaining trip
  • Claim a combined figure of the electric vehicle and advisory fuel rate that can be audited fully
  • Claim a rate that can be calculated accurately as the true cost to you

No car allowance paid

If you are not paid a car allowance from your employer, or by your company, then you can claim expenses based on one of the following methods:

Electric car

  • Claim a rate that can be calculated as accurately as your true cost as possible

Hybrid car

If you are not paid a car allowance from your employer, or by your company, then you can claim expenses based on one of the following methods:

  • Claim at a rate that can be calculated accurately as your true cost

In all of the above cases, it's very important to ensure that you have accurate and detailed business records to substantiate your claim should HMRC raise any queries.

Our eBooks cover this and many other topics.  Check them out here.

And if you'd like to know how we can help you with all of this, or with anything else, feel free to give us a call on 01202 048696 or email us at richard@tfaaccountants.co.uk.

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