- the cost of the electricity;
- the cost to the employer of providing the charging facilities; and any connected services.
The exemption only applies if the certain conditions are met:
- the charging facility is provided at or near the employee’s place of work;
- charging must be available to all the employees generally or those at the particular workplace should they wish to use the facilities.
- the vehicle which is charged is one in which the employee is the driver or a passenger.
Likewise, no tax charge arises if an employee uses a workplace charger to charge an electric company car. There would, in any event, be no tax charge in respect of electricity provided for business journeys.
Electricity is not treated as a ‘fuel’ for company car purposes, the use of a workplace charging facility does not trigger the fuel benefit charge if the charge provided powers private journeys.
The tax exemption does not apply to the reimbursement or payment of an employee’s personal expenditure in respect of charging a battery in a private vehicle away from the employer’s premises, for example, at a motorway service station.
If the vehicle is used for business journeys, mileage allowances can be paid tax-free up to the approved amount.
No tax charge arises in respect of the provision of electricity for a company car for private mileage as electricity is not treated as a fuel for the purposes of the fuel benefit charge.
A first-year capital allowance of 100% of the expenditure is available for expenditure on electric charge-point equipment.
The allowance is available for expenditure incurred before 1 April 2023. This is for corporation tax purposes and before 6 April 2023 for income tax purposes.
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