What are the costs, reimbursements, and tax implications of charging an electric company car at home?

As more businesses switch to electric vehicles (EVs), employees and directors often find themselves charging their company cars at home.  

With the frequency increasing, how do you track costs, claim reimbursements, and stay compliant with tax rules?  

Covering the cost of home charging 

If you charge a company-provided EV at home, you need to calculate the electricity cost for business use. There are a few ways to work this out: 

• Smart chargers or separate meters – Some charging units and smart meters record exactly how much power goes into your EV, making cost calculations straightforward. 

• Usage estimation – If you do not have a separate meter, you can estimate costs by tracking the car’s electricity consumption and applying your home electricity tariff. 

• HMRC Advisory Electricity Rate (AER) – HM Revenue & Customs provides a set reimbursement rate for EV business mileage, currently at 7p per mile. 

Can your employer reimburse your electricity costs? 

Yes, but only under specific conditions. A company can reimburse an employee for home charging expenses if: 

• The reimbursement is based on actual electricity costs for business miles, or; 

• They apply the HMRC AER (7p per mile) to cover business travel. 

If your employer does not reimburse your home charging expenses, you may be able to claim tax relief.  

However, this must be based on real electricity costs, not the AER rate. 

Is home charging a taxable benefit? 

No, as long as the employer’s reimbursement only covers electricity for business mileage. 

If reimbursement includes private mileage, it will be treated as taxable income and subject to tax. 

Mileage allowances for EVs 

If you drive your own electric vehicle for business trips, your employer can reimburse you through Authorised Mileage Allowance Payments (AMAPs). 

If the reimbursement is lower than the standard AMAP rates, you may be eligible for Mileage Allowance Relief (MAR) to cover the shortfall. 

For company cars, employers can either use HMRC’s AER (7p per mile) or, if no reimbursement is given, employees can claim a tax deduction based on the actual cost per mile. 

Charging at work – Is it taxable? 

Employers who provide charging facilities at or near the workplace benefit from a tax exemption, covering: 

• The cost of electricity 

• Installation and maintenance of charging points 

• Associated services 

This means employees can charge their company cars at work without incurring a taxable benefit—provided the charging stations are available to all employees.  

If access is restricted to certain staff, there could be a tax liability. 

What happens with public charging? 

• Employer directly pays for public charging – No taxable benefit. 

• Employer reimburses public charging costs – Could be taxable unless the charging was exclusively for business purposes. 

Tax and reimbursement rules for EVs can be complicated. If you want to ensure compliance and avoid unnecessary tax liabilities, speak to our expert accountants today.