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Is My Home Electric Car Charging Point Tax Exempt?

Many of our clients are switching to electric cars due to the wide range of benefits that they offer (you can find out what they are in this blog). One of the main questions we’re asked is whether an electric car charging point installed at your home is a taxable benefit in kind. Read on to find out more.

Charging points at commercial premises

When an electric car charging point has been provided by the company, the location is a key factor. If the charging point is located at or close to the normal workplace (such as your commercial premises) and is available for use by directors and employees, there’s no benefit in kind. This applies whether the electricity is used for business trips or private mileage.

Charging points at private residences

If the company has paid for an electric car charging point to be fitted at your home, a taxable benefit applies. The amount that can be claimed depends on whether the employer owns the charging point or has transferred ownership to the individual whose private property it’s located on. As a result, it’s best to ask us for more details and we’ll assess the situation.

Employee-owned electric cars

If the electric vehicle is your own (rather than provided by the company) and you as an individual pay for its electricity, it is taxable on a benefit in kind basis equal to the cost of electricity used for private journeys. However, this doesn’t apply if you reimburse the company for the cost of electricity, which is usually charged at the rate of 4p per mile (HMRC’s recommended amount).

Company-owned electric cars

If the electric vehicle you’re driving is owned by the company, an exemption applies to all charging points regardless of where they’re located.

Company-owned cars used for private journeys

When the electric car is owned by the company, the exemption extends to all electricity used regardless of the purpose of travel. In other words, the employee/director and also their family members using the car for business or personal journeys can do so without a taxable benefit occurring.

Transfer of ownership

When a charging point is installed at the employee’s home and paid for by the company, the ownership can be transferred to them. This means that there is no taxable benefit, even if the employee sells their home.