PHEVS are cool. PHEVs are terrible. The debate goes on.
But whilst we talk, fleets are quietly ordering PHEVs like they are going out of fashion. The last year has seen lots of PHEVs launched, like the Skoda Octavia and Superb iV, VW’s Passat and Golf GTE, the perennial BMW 330e and now Audi’s A3 TFSe. And these are serious cars capable of serious ZER, which still munch the fleet miles all day long. The most tax efficient of these has a scale charge of just 7% in 2021/22, and whilst that’s not as good as an electric car, it’s still bloomin’ awesome.
Fuel reimbursement is interesting. We have a client that provides a fuel card, but recharges the lot to net pay and then reimburses the drivers the AFR rate based on business mileage claims. This is neat and means the employee could benefit by properly charging the car, which is after all the point.
And even private fuel in a PHEV can work for the employee. Take the A3 which is a 7% car. With the fuel scale charge at £24,600, that’s tax to pay on £1,722 which for a 40% taxpayer is £689. At (say) 70mpg and £1.20 a litre, that buys 8,800 private miles. If you still take free fuel and don’t want to give it up, get the A3?
Suggesting keeping private fuel in a company car? These are interesting times indeed!