Readers’ forum: Costs of running hybrid car

A client has recently acquired a hybrid vehicle via their owner managed limited company (sole director sole shareholder). The company is the legal owner of the vehicle and the client would like to claim for both fuel and electric costs. The car will be used for personal and business journeys. The director/shareholder proposes to pay for the fuel via the company debit card and I have advised them that they will suffer both a personal fuel and car benefit in kind (BIK) in this regard. However they would also like to claim electric costs for charging the vehicle at their home.

I was recently reading that HMRC has updated its guidance: under ITEPA 2003 s 239 the costs of charging electric vehicles at home are now treated as a tax-free benefit. ITEPA 2003 s 239(6) mentions that the exemption applies to a ‘taxable car’. Looking at the...