MPG vs Standard Hybrid

[DazzyB]

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In the Netherlands, if you have a company car, you pay the Dutch equivalent of BIK and all costs associated with owning / driving the car are payed by the employer without you having to pax taxes on them. These items are supposed to be all-in with the BIK. But if the electricity was not considered associated with driving / owning the car (and also not with any other work related activities) , it would be a separate benefit that would be separately taxed. I assumed that next to the BIK, you would not be taxed on the company payed fuel?

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In the UK, personal mileage fuel (if paid for by the employer) is also considered a BIK and therefore taxable. But electricity isn't included in this (for now!)

 

[Ozukus]

In the UK, personal mileage fuel (if paid for by the employer) is also considered a BIK and therefore taxable. But electricity isn't included in this (for now!)

You may want to look at this thread.

http://www.myoutlanderphev.com/forum/viewtopic.php?f=9&t=1910

Their approach is interesting, Private Owners get whacked, Company Car Drivers don't at the moment, however have heard in 2016 then the 9% BIK rate will apply even for electric vehicles if the company says it covers fuel.

 

[anko]

Thanks guys.

With us, BIK (or "bijtelling") specifically addresses private miles made by the employee in a company car. If the employee can prove to the tax man that the company car is only used for business miles, BIK does not apply. BIK covers all costs associated with these private miles. So, fuel for private miles is not taxed separately or anything like that.

Must say that our "bijtelling" seems to be much more than your BIK. For a normal car, one needs to add 25% of the list price to the taxable income. But, like I said, this covers all the employer is willing to pay for, as long as it is associated with driving / owning the car. Toll, parking, fuel, maintenance. You name it. Well, your employer cannot sponsor a new garage or driveway. If he did so, that would be considered additional income and taxed as such :mrgreen:

For PHEVs registered in 2013 (like mine) the "bijtelling" is 0% . For PHEVs registered in 2014 and 2015 it is 7%. Next year it will be 15%. This will most likely put an end to the extreme popularity of PHEVs.

 

[greendwarf]

In the UK, personal mileage fuel (if paid for by the employer) is also considered a BIK and therefore taxable. But electricity isn't included in this (for now!)

Quite right but if the employer pays for ANY personal expenses not used to perform the employer's business, then they become liable for BIK - unless the Revenue have granted a dispensation. So anything from shirts to food is potentially taxable - including your home electricity. The normal approach for relatively small amounts with a disproportionate cost in assessing accurately is to make a flat rate charge - 'watch this space'

Just to point out that the converse also applies they often apply flat rate allowances for common expenses NOT reimbursed by the employer.