EV drivers reimbursed for business mileage using HMRC’s advisory electricity rate (AER) often face underpayment.
Research by Paua shows that company car drivers who do 20% of their vehicle charging on public networks may see a £200+ annual shortfall when reimbursed at the Government’s 7 pence per mile rate. Higher mileage drivers or those relying more on public charging are most affected. Paua says the AER often fails to cover real charging costs, leaving drivers out of pocket for work-related travel.
To help tackle this challenge Paua has released a simple calculator (https://www.paua.com/reimburse-calculator) to enable drivers to understand how much out of pocket they are.
By inputting data about their vehicle, their mileage and energy costs provides the drivers with a snapshot of the impact that the AER rate has on their finances.
Paua is urging drivers who feel that they may be affected by this to reach out hello@pauatech.com so that Paua can work with their employer to get them a better deal.
Paua Reimburse captures the charging costs for home and public and splits the business and personal usage to help businesses fairly compensate their employees.
The data collected means that Paua can calculate a bespoke rate for each driver during the claim period.
Niall Riddell, Paua CEO said: “Paua makes it simple for business to properly compensate employees and be compliant with HMRC.”
Paua is encouraging drivers to check their reimbursement status by visiting www.paua.com and using the calculator to review their position with their employer.