Payments connected with cars and vans and exempt heavy goods vehicles provided for private use.
Where a company owned Electric Vehicle (EV) is charged at the home of the employee covering 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 vehicle (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’s will be due on these payments under Regulation 25 SSCR 2001 (SI 2001 No 1004).
Employers will need to ensure that the reimbursement made towards the cost of the electricity is solely for the company car.
NIM06440 – Class 1 NICs: Expenses and allowances: Electric Vehicles: Charging Company Electric Vehicles at Employee’s Home
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 –