How to Claim Tax Relief on Electric Vehicle (EV) Charging at Home for Employees 🚗⚡

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As electric vehicles (EVs) become more common in the UK, many employees wonder: Can I claim tax relief on EV home charging? The good news is that recent HMRC policy updates provide clear guidance on tax benefits for employees and employers.

This guide explains how to claim tax relief on EV charging, including employer reimbursements, VAT recovery, and relevant government incentives.



🔹 Employer Reimbursement for Home Charging

Employers can reimburse employees for electricity costs when charging a company-provided electric vehicle at home. Thanks to recent HMRC updates, this reimbursement is not taxable, making EVs more attractive for employees.

Example Calculation:

  • Employee charges their company car at home

  • Electricity cost: £0.30 per kWh

  • Monthly consumption: 200 kWh

  • Reimbursement: 200 kWh × £0.30 = £60/month

  • No Benefit-in-Kind (BIK) tax applies

🔗 Learn more about HMRC tax relief on electric vehicles on the official HMRC website.

🔹 Installing a Home EV Charger 🏡⚡

If an employer pays for an EV charger installation at an employee’s home for a company car, no taxable benefit arises. This means employees get a charger tax-free, while employers can claim it as a business expense.

Employer Benefits:

  • No National Insurance Contributions (NICs) on this expense

  • Corporation tax relief available

  • Encourages a low-carbon company car fleet

🔗 See how MA & Co Accountants can help with your EV tax planning: Book a Free Consultation.

🔹 Claiming VAT on EV Charging ⚡💰

Employers can recover VAT on electricity used to charge company cars, even if charged at an employee’s home. However, they must separate business and private use.

Key VAT Rules:

  • Employers can reclaim 100% VAT if the car is used exclusively for business

  • If used for both business and private, VAT can be reclaimed proportionally

  • Employees cannot claim VAT on personal EV charging

🔗 Need help with VAT reclaim for EV expenses? Talk to an expert.



🔹 Workplace Charging & Tax-Free Benefits 🚘🏢

Employees can charge their personal or company EV at work without any taxable benefit. This applies if the charging point is available to all employees.

Employee Benefits: ✔ Free charging without additional tax liability ✔ No P11D reporting required ✔ Encourages green commuting

🔗 Discover more employer tax reliefs for sustainable business expenses: Visit MA & Co Accountants.

🔹 Benefit-in-Kind (BIK) Rate for EVs 📉

EVs have a very low BIK rate of 2% until April 2025. This makes them significantly cheaper than petrol or diesel cars in terms of taxation.

Tax Year        BIK Rate for EVs
2023-24               2%
2024-25               2%
2025-26               3%
2026-27               4%
2027-28               5%

Example: If an EV has a list price of £40,000, the taxable BIK value is £40,000 × 2% = £800, making it far more cost-effective than petrol cars with higher BIK rates.



❓ FAQs 🤔

1. Can I claim tax relief on home charging for my personal EV?

Unfortunately, no. The tax relief only applies to company cars and employer-funded installations.

2. What happens if I charge a company EV at public charging stations?

Employers can reimburse the cost, but VAT recovery depends on whether the charge is for business use.

3. Can a sole trader claim EV charging costs?

Yes! If you own an electric vehicle used for business, you can claim charging costs as an expense and may be eligible for capital allowances.

🔗 Find out what tax benefits are available for small businesses: Read more.



🔹 Key Takeaways ✅

  • Employer reimbursement for home charging is tax-free ✅

  • EV charger installation for company cars is tax-free ✅

  • VAT on home charging can be reclaimed (if for business use) ✅

  • Workplace charging is not a taxable benefit ✅

  • BIK rate for EVs remains at 2% until April 2025 ✅

Switching to electric company cars offers significant tax savings for both employers and employees.

🔗 Maximize your tax relief on EVs! Book a Free Consultation today with MA & Co Accountants. 🚀

Location: Croydon, UK

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