Allowing staff to charge their electric cars at the workplace.

If a director or employee drives a wholly-electric company car, they can put in a claim of 8p per mile for business mileage if they charge the car at home; but they can’t put in an expense claim for private mileage.

However, your company can install electric charging points at the workplace. If the director or employee charges their vehicle at the workplace, they are free to use the electric charge for both business and personal journeys – without incurring a taxable benefit in kind for the private element. The cost of charging would, of course, be borne by your company.

But this could be a good perk to offer to staff. Instead of giving them a pay rise (subject to both tax and national insurance), offer them the ability to charge their company electric car on company premises, so that their private journeys are fully paid for by your business. And there will be no tax or national insurance for the employee on this benefit.

The cost of installing the electric charging point is a tax-deducible cost for your business and you’ll be able to reclaim VAT on the cost of both the charging point and installation, assuming VAT has been charged on it.

Note that staff using their own electric car for business journeys can still put in a claim for up to 45p per mile, just like the driver of a personal petrol car.

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David Elliott

Chartered Accountant, BSC, FCA

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