Q. In June 2023, You said that it wasn’t Free of Tax if the Employer Reimbursed an Employee When Recharging their Electric Car from Home – but it is if we Allow them to Recharge at the Workplace. We have a Workplace EV Charger and Reimburse the Employees Who Use their Own at Home. Have HMRC thought Again on Why the Tax Treatment Differs?
A: Thankfully, HMRC have recognised (at last) they need to bring their guidance into line and make both charging at the workplace and at home free of tax. They have updated their Employment Income Manual (page 23900) to say this and there is a nice flowchart which confirms there is no tax due where an employer reimburses the employee for the cost of electricity to charge their company car at home. The same applies with National Insurance. Do make sure you keep records to demonstrate to HMRC you have only reimbursed for the charging of a company electric vehicle.