Last updated: 19 October 2026
How is electric vehicle charging taxed?
Charging at work is tax-free for employees, whether the car is a company car or their own, as long as charging is available to all employees at or near the workplace. Electricity isn’t treated as fuel for company car fuel benefit, so a company can pay for charging a company electric car without a fuel benefit charge. For employees using their own electric cars on business trips, the employer can pay mileage at the approved rate, 55p a mile for the first 10,000 miles, tax-free. Companies can claim a 100% first-year allowance on new chargepoints until March 2027.
Quick guide
| Situation | Taxable for employee? |
| Charging company EV at work | No |
| Charging own EV at work | No |
| Employee’s home electricity used for company EV, reimbursed | Tax-free only for business miles at the advisory electricity rate |
| Company pays for home charging of own EV | Yes, unless reimbursing business mileage |
| Home chargepoint installed for company EV | Usually no, if for business use |
Advisory electric rate
For company cars, employers can reimburse employees for business mileage when the employee paid for charging. HMRC publishes Advisory Electricity Rates each quarter, with a lower rate for home charging and a higher rate for public charging. Check the latest figures on gov.uk before each quarter. Reimbursements up to the rate are tax-free.
Capital allowances for chargepoints
- 100% first-year allowance for new electric chargepoint equipment, extended to 31 March 2027 for companies and 5 April 2027 for unincorporated businesses
- Covers equipment and installation
- After that, normal capital allowances apply
VAT
VAT on chargepoints is reclaimable if the business is VAT registered. VAT on home charging reimbursed to an employee can be reclaimed only on the business element, with records.
Example
A company provides a £40,000 electric company car to its director and installs a chargepoint at her home for £1,000. She records business miles and the company reimburses her home electricity for them at the advisory electricity rate. There’s no fuel benefit, the chargepoint qualifies for the 100% allowance, and the car’s benefit is 4% × £40,000 = £1,600.
Sole traders
Sole traders can claim the business proportion of charging costs, or use simplified mileage rates of 55p a mile for the first 10,000 miles (45p before 2026/27) and 25p after that instead.
Common mistakes
- Thinking electricity creates a fuel benefit
- Reimbursing home charging of a personal car without mileage records
- Missing the 100% chargepoint allowance
- Claiming VAT on private use
Records to keep
Keep mileage logs, chargepoint invoices and electricity cost calculations.
Why reimbursing home charging needs care
When an employee pays the household electricity bill and the employer refunds part of it, HMRC treats the refund as earnings unless it covers business mileage at or below the advisory rate. A sub-meter or smart charger that records the energy used helps show the business proportion. Private mileage in a company EV doesn’t create a fuel benefit, but reimbursing it in cash is taxable.
Frequently asked questions
Is a home charger a taxable benefit?
Usually not for a company EV used for business.
Can I sub-meter home charging?
Yes, to support reimbursement.
What about public charging cards?
For company EVs, it’s tax-free.
Does salary sacrifice for EVs still work?
Yes, with the low benefit rate.
Plug-in hybrids
Charging a plug-in hybrid at work is also exempt, but petrol paid by the company for private use creates a fuel benefit.
Related: electric car allowance, EV and hybrid mileage rates and first-year allowances.
Talk to Accotax
Want this handled for you? Our team at Accotax can help with EV charging tax advice. See our limited company accountants service, or contact us for a free, no-obligation quote.
This page is general guidance based on HMRC rules for the 2026/27 tax year, checked against gov.uk on 16 October 2026. It is not personal advice, so speak to an accountant about your own situation.
