Tax Changes to the Charging of Electric Company Vehicles at Home

by | Oct 20, 2023 | Blog

HMRC has changed their approach to the tax treatment of employer reimbursement of the costs of charging fully-electric company cars and vans at home.

Previously, any expenses claimed by employees as a result of charging a company car or van at home, reimbursed by their employer,  were treated as taxable earnings.

However, the change means that the reimbursement of such costs of charging at home are now treated as a tax-free benefit.

However, employees must demonstrate that the electricity was used to charge their company car or van, otherwise the exemption will not apply.  Likewise, the employer must also ensure that any reimbursement made relates solely to the charging of their company car or van.

If you need any advice, please get in touch.

Martin Tomes Tax Accountant Nottingham

Martin Tomes is HSKSG’s Director of Tax.  He specialises in assisting and advising individuals and their businesses in all areas of taxation with an emphasis on tax planning, mitigation and compliance and also heads up the firm’s specialist property sector group.

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