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Electric Charging of Company Cars and Vans at Residential Properties


HMRC used to maintain that if employees were reimbursed for charging an electric car from home then the reimbursement was deemed part of salary, and was taxed as such, but following a review of their position, HMRC now accepts that 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.


This means that no separate charge to tax under the benefits code will arise where an employer reimburses the employee for the cost of electricity to charge their company car or van at home.


However, the exemption will only apply providing it can be demonstrated that the electricity was used to charge the company car or van. 


Employers will need to make sure that any reimbursement made towards the cost of electricity relates solely to the charging of their company car or van.

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