NIM06440 - Class 1 NICs: Expenses and allowances: Electric Cars: Charging Company Electric Cars at Employee鈥檚 Home with Reimbursement
Regulation 25 of the Social Security Contributions Regulations 2001 (SSCR 2001) (SI2001 No 1004) & Paragraph 7 (1) (a) of part 8, Schedule 3 of the Social Security Contributions Regulations 2001
Company Car charged at home for Business and Private use
Where a company electric car is charged at the home of the employee covering business or both business and private mileage, there is no charge under the benefit code where an employer reimburses an employee for the cost of electricity used to charge that car (see EIM23900).
These payments are to be disregarded in the calculation of earnings from the employed earners employment and no Class 1 or Class 1A NIC鈥檚 will be due on these payments under Regulation 25 SSCR 2001.
Employers will need to ensure that the reimbursement made towards the cost of the electricity is solely for the company electric car.聽
These payments are to be disregarded in the calculation of earnings from the employed earners employment and no Class 1 or Class 1A NIC鈥檚 will be due on these payments under Regulation 25 SSCR 2001.
Employers will need to ensure that the reimbursement made towards the cost of the electricity is solely for the company electric car.聽
Privately Owned Electric Car
See NIM05803 for AMAP rules when an employee鈥檚 electic car is used and the employer reimburses for business mileage. For private use, reimbursement is treated as earnings under Section 3 SSCBA 1992.