Cost declaration of your EV at home

Frequent asked questions

Is a charging station private or business?

An EV charger can be either a personal  or business asset, depending on who pays for it and how it's used. If the employer pays for the installation at the employee’s home and the car is used for business, the charge point may be treated as a business expense. However, if the employee pays for the installing themselves, it remains private property even if it's used to charge a company car.

How does business settlement work?

Business settlement (reimbursement) means compensating an employee for charging a company car at home. If the vehicle is used for business purposes, the employee can be reimbursed for electricity costs related to those miles. This is typically done based on mileage claims, using HMRC’s Advisory Electric Rate (AER), currently set at 9p per mile (as of 2024). The rate covers home charging costs without needing detailed energy bills.

How does automatic settlement of a charging station work?

Some smart chargers offer automated reimbursement tools. These systems track exactly how much electricity is used to charge a specific vehicle at home, normally this goed trough a MID certified KWH-meter. The data can be shared directly with the employer or leasing company, allowing for accurate, automated settlement based on real energy use. This is useful when charging multiple vehicles or when detailed reporting is needed for company expense claims.

Is a charge point business deductible?

Yes, a business can deduct the cost of installing a charge point as a capital expense if it’s used for business purposes, such as charging a company vehicle. Companies may also benefit from 100% first-year capital allowances, allowing the full cost of the charge point and installation to be written off against taxable profits. VAT may also be recoverable if the charger is used exclusively for business.

Does my employer pay the costs for a charging station at home?

Some employers do offer a contribution or reimbursement toward home charge point installation, especially if the employee has a company EV or hybrid. However, this is not mandatory and depends on the company’s EV policy. If the charger is used for both personal and business purposes, there may be benefit-in-kind (BIK) tax implications unless the use is strictly business.

How does a company car with private use work?

If an employee has a company car and is allowed to use it for private journeys, this is considered a benefit-in-kind and is taxable. The amount of tax depends on the vehicle’s CO₂ emissions and list price, with electric vehicles benefiting from low BIK rates (currently 2% in 2024-2025). The BIK is added to the employee’s taxable income and taxed through PAYE. Employers must report this via a P11D form unless processed through payroll.