Image to represent an electric car | Randall & Payne Accountants and Business Advisors

Will I get taxed when being reimbursed for charging my company car at home?

HMRC has published amended guidance about a change in interpretation regarding home charging of electric company cars.

An exemption exists on payments and benefits provided in connection with company cars and vans, which includes aspects such as vehicle repairs, insurance, and road tax.

HMRC previously maintained that the reimbursement of costs in relation to charging a company vehicle at a residential property was not covered by this exemption.

However, this has recently been reviewed and HMRC now accepts reimbursing part of a domestic energy bill, which is used to charge a company vehicle, will fall within the exemption provided.

The good news is that this means that there will be no separate tax charge under the benefits code where the employer reimburses the employee for the cost of electricity to charge their company vehicle at home.

You need to be aware that the exemption will only apply providing it can be demonstrated that the electricity was used to charge the company vehicle so you need to have a record of the cost associated with charging it. The employer will need to make sure that any reimbursement made towards the cost of electricity relates solely to the charging of the company vehicle.

If you have any questions for Rob or the team, do get in touch on 01242 776000 or