Charging your company car at home – now a tax-free benefit thanks to HMRC!

Published: 18/10/2023 By Hannah Duncan

HMRC has made changes regarding the tax treatment of charging electric company cars and vans at homes. Now, the costs of charging are considered a tax-free benefit. In the past, HMRC treated reimbursements for charging a company-owned electric vehicle for personal use as taxable earnings.

HMRC updated their guidelines to clarify that payments for charging your company car or van at home are now exempt from taxation.
HMRC state:
“Following a review of our position, HMRC now accepts reimbursing part of a domestic energy bill, which is used to charge a company car or van, will fall within the exemption provided by section 239 ITEPA 2003.”
Therefore, there won't be an additional tax charge if your employer reimburses you for the electricity used to charge your company car or van at home.

However, this exemption only applies if it can be proven that the electricity was used for charging the company vehicle. Employers should ensure that any reimbursement specifically relates to charging their company cars or vans.