Finance Bill 2019 includes back-dated proposals to exempt the provision of electric charging facilities for employees with electric cars and corrects errors on the optional remuneration calculation for company cars.
Draft legislation covers:
- Electric charging facilities: from 6 April 2018:
- The provision of free electric charging facilities for electric or plug-in hybrid cars will be a tax free benefit in kind, provided it is made available for all employees at that workplace.
- The provision of free electric charging facilities for electric or plug-in hybrid cars will be a tax free benefit in kind, provided it is made available for all employees at that workplace.
- Correction to optional remuneration 'OPRA' calculations: from 6 April 2019:
- The amount foregone, used in the calculation, will include amounts foregone in exchange for other benefits connected with the car benefit, such as insurance, maintenance etc. but not for the provision of drivers or fuel.
- Where the employee makes a capital contribution, which reduces the benefit in kind, it will be pro-rated where the car is not available for the entire tax year. Based on current wording, the entire amount would be deductible (subject to £5,000 cap), even if the benefit itself is pro-rated.
Links
See also: Plug in car, van and motorcycle and, electric charging grants
External links
HMRC policy paper: Workplace charging for electic and hybrid plug in vehicles and draft legislation
HMRC policy paper: Changes to Optional Remuneration Arrangements for taxable company cars and vans
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