Own Tesla · Company Tesla · HMRC 2026/27
Own Tesla vs company Tesla: mileage allowance, BIK and business charging
The two routes can look similar on the road but are taxed very differently. Your own Tesla can use HMRC's Approved Mileage Allowance system; a company Tesla can create Benefit in Kind and uses separate electric reimbursement rates.
Do not compare 55p per mile directly with a 4% BIK rate. They measure different things. Mileage allowance is a tax framework for business use of your own vehicle; BIK taxes the private availability of an employer-provided car.
| Your own Tesla | Company Tesla | |
|---|---|---|
| Main tax framework | AMAP / Mileage Allowance Relief | Company-car Benefit in Kind |
| 2026/27 headline rate | 55p first 10,000 business miles, then 25p | 4% zero-emission BIK |
| Business electricity / mileage reimbursement | AMAP is the mileage framework | 7p home / 15p public AER from 1 June 2026 |
| Ordinary commuting | Normally private, not qualifying business mileage | Normally private use; company-car availability can still create BIK |
| Who carries vehicle ownership/running cost? | You | Employer / scheme, subject to arrangement |
1. Your own Tesla: 55p then 25p for qualifying business mileage
If you use your own Tesla for qualifying business travel, HMRC's Approved Mileage Allowance Payment rate for 2026/27 is 55p per business mile for the first 10,000 business miles and 25p per mile thereafter.
An employer does not have to pay exactly that amount. If qualifying payments are lower than the approved amount, Mileage Allowance Relief may be available on the shortfall. Ordinary commuting to a permanent workplace is normally excluded.
8,000 × £0.55 = £4,400 HMRC approved amount.
That £4,400 is not a statement that the Tesla cost £4,400 to run. AMAP is a simplified mileage framework intended to cover the employee's use of their own vehicle for business travel.
2. Company Tesla: BIK can apply even before you drive a business mile
If an employer provides a Tesla that is available for private use, the company-car benefit rules normally apply. A zero-emission company car uses a 4% BIK rate in 2026/27, rising to 5% in 2027/28, 7% in 2028/29 and 9% in 2029/30.
£50,000 × 4% = £2,000 taxable car benefit.
At a 20% marginal tax rate, that is about £400 annual income tax; at 40%, about £800.
The company-car calculation is based on statutory valuation rules, not business miles. Use the Tesla BIK calculator for your own value and tax rate.
3. Business electricity in a company Tesla is a separate calculation
When an employee pays for electricity used on business travel in a fully electric company car, HMRC's Advisory Electric Rates can be used for reimbursement. From 1 June 2026 they are 7p/mile for home charging and 15p/mile for public charging.
This is why a good company-Tesla record can need both the journey classification and charging context. See the company Tesla business mileage guide for the detailed AER rules.
4. Salary sacrifice changes the cashflow, not the basic EV BIK rule
A salary-sacrifice Tesla may replace part of gross salary with access to the car. Fully electric cars are important because HMRC excludes cars at or below 75g CO₂/km from the normal optional-remuneration comparison with salary foregone; the car continues to use the normal company-car benefit calculation.
But the decision still depends on the full scheme: gross salary reduction, income tax and National Insurance, pension implications, insurance, maintenance, tyres, mileage limits, employer contribution, early termination and what happens if employment ends.
For the tax mechanics, see Tesla company car tax and salary sacrifice.
5. Which route tends to fit which situation?
Your own Tesla may suit you if…
You want ownership flexibility.
- You already own or want to own the car
- You have meaningful qualifying business mileage
- Your employer pays a useful mileage rate
- You value keeping the car independently of employment
A company Tesla may suit you if…
You value a packaged vehicle cost.
- The employer or salary-sacrifice scheme is competitive
- Insurance and maintenance are included on attractive terms
- The low EV BIK rate is valuable in your tax position
- You are comfortable with mileage and exit conditions
Neither list is a recommendation. The better choice can change with annual mileage, financing, employer policy, tax rate and the exact Tesla offered.
6. Why DriveQuery matters in either model
The tax mechanism changes, but the factual problem is the same: you need to know where the car went, why the journey happened and which miles were actually business travel.
DriveQuery is being built to collect available journey data continuously through the Tesla connection, suggest repeat categories and leave uncertain trips for review. The software can organise evidence; the driver or employer still applies the correct tax treatment.
Two calculators
Put numbers around both sides.
Calculate the 2026/27 own-car approved mileage amount, then compare it with the BIK estimate for the company Tesla you are considering.
Frequently asked questions
Can I claim 55p per mile in a company Tesla?
No. The 55p/25p Approved Mileage Allowance Payment rates are for an employee using their own car or van for qualifying business travel.
What mileage rate applies to a company Tesla?
For business electricity in a fully electric company car, HMRC's Advisory Electric Rates are 7p/mile for home charging and 15p/mile for public charging from 1 June 2026.
Does a company Tesla create BIK if I use it privately?
Normally a company car made available for private use creates a taxable car benefit. A zero-emission company car uses a 4% appropriate percentage in 2026/27.
Is the HMRC approved mileage amount pure profit on my own Tesla?
No. It is a simplified tax framework for qualifying business use of your own vehicle, not a calculation of your actual ownership or running profit.
Is salary sacrifice always cheaper?
No. The net outcome depends on the salary sacrificed, BIK, tax and National Insurance, pension treatment, vehicle package and exit terms.
Official sources
- HMRC – Approved Mileage Allowance Payments 2026/27
- HMRC – Advisory Electric Rates for company EVs
- HMRC – Company car BIK appropriate percentage
- HMRC – Salary sacrifice / optional remuneration arrangements
Whichever car pays the bill, keep the journeys clear.
DriveQuery is being built to turn Tesla journey history into a reviewable record for business mileage, commuting and private use.