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TaxRobin, Tax Consultant
Category: Tax
Satisfied Customers: 17218
Experience:  International tax
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We would like to provide our employees with electric points

Customer Question

we would like to provide our employees with electric points so that they can charge their cars. what are the tax implications for charging personal cars? is this seen as a taxable benefit? Or are there only tax implications for personal cars being used for business use?
Submitted: 2 years ago.
Category: Tax
Expert:  TaxRobin replied 2 years ago.
HelloAccording to EIM23900 - Car benefit: special cases HMRC sees this as a benefit (like fuel is considered a benefit) based on the ownership of the vehicle.Provision: Employer allows cars to be recharged from a vehicle charging point at work.Company car made available for private use: No taxable benefit - electricity does not sit within the meaning of fuel so the Fuel Benefit Charge does not apply. And there is no further benefit charge as s239(4) ITEPA 2003 specifically excludes a benefit connected with a taxable car.Employee’s car used for business : Taxable benefit based on cost to the employer. In relation to electric car charging stations, the provision by an employer of a charging station for an employee to charge a private electric car gives rise to a benefit-in-kind.In general terms, a benefit-in-kind is liable for tax and National Insurance contributions. If, however, the employer considers the benefit to be a ‘trivial benefit’, the employer can apply to HMRC for agreement to exclude the benefit from reporting grounds.The Government recognises that this is a developing area and keeps the tax rules under review to ensure that they remain effective in promoting take up of cleaner cars but also remain consistent with the Government’s wider deficit reduction plans. At this point, if the employer were to allow for topping up on personal vehicle, not used for business, there would not be a benefit.
Expert:  TaxRobin replied 2 years ago.
If my answer addressed your question please rate below or above (let me know if you have difficulty as I believe the system changed), if you need more information reply below.