In this week’s Q&A, Croner-i payroll advisor Joe Tabois, explains the correct tax treatment when using company credit cards and reclaiming electric vehicle recharging costs
What is the correct treatment where an employer provides an employee with a company credit card, and it is used to pay for roadside charging of an electric company car?
There will be no taxable benefit on the employee and no National Insurance contribution (NIC) charge. A credit card is not a specific means or facility for providing electricity but rather a credit token under section 92 Income Tax (Earnings and Pensions) Act 2003 (ITEPA 2003) and an exemption is provided by s269 ITEPA 2003.
Remember that electricity is not a fuel for fuel benefit purposes under s149(4) ITEPA 2003.
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