Though only 100 of the electric vehicles have so far been sold, the taxman is
wrestling with how to value the vehicle’s energy use for tax purposes.
Conventional vehicles allow taxpayers to claim back fuel costs against tax at
between 9p and 16p a mile. But since the cars are effectively ‘plugged’ in
before driving, it is unclear what costs can be claimed back.
Paul Jackson, director of Fleet software provider Miles consultancy, owns one
of the Smart cars, and told Accountancy Age that he was negotiating a reclaim
for fuel costs.
‘HMRC told me to send on my electricity bill, but I charge the car in
different places. They’ve not really thought about electric car rates, they just
don’t know how to calculate it,’ said Jackson.
Jackson hopes to get a discount to reflect the car’s environmentally friendly
status, in line with the government’s aim to encourage green practices through
the tax system. HMRC declined to comment.
Does Darwin's theory apply to taxation? Colin ponders...
The UK tax gap fell in 2014-15 to its lowest-ever level of 6.5%, revealed official statistics published today
Changes to the tax system is urged to support the growth of entrepreneurs, found a report from the Grant Thornton UK, the Institute of Directors, and the Prelude Group
The EC has been instructed to draft a European Union (EU) directive authorising an EU financial transaction tax, which would apply to ten of the EU’s 28 member states