Electric vehicle charger fitted at home - tax deductible?
Discussion
Phooey said:
I'm just having this conversation with my account regarding an EV charger fitted to my home address and he says he doesn't think it is a legitimate business expense as it is not "wholly and exclusively for business purposes". I'm sure he is right but wondered if anyone can confirm?
Is this to allow you to charge a company car? If so it is allowable:https://www.gov.uk/hmrc-internal-manuals/employmen...
MaxFromage said:
Is this to allow you to charge a company car? If so it is allowable:
https://www.gov.uk/hmrc-internal-manuals/employmen...
It is yes. Thank you https://www.gov.uk/hmrc-internal-manuals/employmen...
MaxFromage said:
Great. It's a little concerning your accountant doesn't know that to be honest, as EVs are a hot topic. Just make sure you are submitting a P11D and you are claiming what you can for the car- running costs, potential home charging etc.
Again, thanks. To be fair he said he would check up on the charger and come back to me but yes I thought it was something that any accountant should know given the popularity of electric vehicles. He explained the P11D to me along with employer NI - which explained why EVs are popular. He didn’t mention the charging if done at home though - how do you separate the vehicle electric from other/personal usage? CheersThe linked document above explains the situation whether you're using actual electricity cost or mileage. I understand newer chargers should keep a record of the charging. So you can calculate which method works best for you.
Employee charges car at home or at a public charging point: their employer reimburses the electricity costs
Stage Action Outcome
Stage 1 Who owns the car?
If company car, go to stage 2. If employee’s car, go to stage 3
Stage 2 What is the car used for?
Business and private mileage. The exemption under s.239(2) ITEPA 2003 means there is no separate charge to tax under the benefits code when an employer reimburses an employee for the cost of electricity to charge their company car at home or at a public charging point. For the National Insurance Contributions position, see NIM06440. Employers will need to ensure that the reimbursement made towards the cost of the electricity is solely for the company car
Stage 3 What is the car used for?
If private use only, reimbursement is taxed as earnings. If business use only or mixed use, go to stage 3a
Stage 3a How is reimbursement calculated?
If by reference to mileage, AMAP rules apply for business miles travelled. Any amounts in excess of AMAP rates would be taxable. If less than AMAPs rates, employee may claim appropriate amount of tax relief under MAR for business miles. If a flat-rate amount is paid it is taxed as earnings.
Employee charges car at home or at a public charging point: their employer reimburses the electricity costs
Stage Action Outcome
Stage 1 Who owns the car?
If company car, go to stage 2. If employee’s car, go to stage 3
Stage 2 What is the car used for?
Business and private mileage. The exemption under s.239(2) ITEPA 2003 means there is no separate charge to tax under the benefits code when an employer reimburses an employee for the cost of electricity to charge their company car at home or at a public charging point. For the National Insurance Contributions position, see NIM06440. Employers will need to ensure that the reimbursement made towards the cost of the electricity is solely for the company car
Stage 3 What is the car used for?
If private use only, reimbursement is taxed as earnings. If business use only or mixed use, go to stage 3a
Stage 3a How is reimbursement calculated?
If by reference to mileage, AMAP rules apply for business miles travelled. Any amounts in excess of AMAP rates would be taxable. If less than AMAPs rates, employee may claim appropriate amount of tax relief under MAR for business miles. If a flat-rate amount is paid it is taxed as earnings.
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