Q9: Do I have to pay benefit in kind taxation (BIK) on a home charger or energy paid for at work or on the road by my employer?
Where your employer pays for your home charger to be installed alongside giving you a company car, you will not be liable for any benefit in kind taxation.
The HMRC mileage allowance for reclaiming any electricity used to charge your company car at home was increased to five pence per mile in November 2021. Your place of work may have a different reimbursement rate in place.
If you plan to use your own electric car and your employer pays for your home charger, it is classed as a benefit that you will need to pay tax and national insurance on.
The mileage allowance for reclaiming any electricity you use to charge your own car is the same standard rate as for petrol and diesel cars – forty-five pence per mile for the first ten thousand miles and then twenty-five pence per mile.
If your company has installed electric chargers at work, or nearby to where you work, there’s an HMRC exemption in place which means you won’t be charged BIK on any energy you use to charge your vehicle – whether it’s for business or private mileage.
If you’ve just bought an electric car yourself that you’ll be travelling to work in, any energy you use to charge your vehicle, regardless of its use, will also be exempt from benefit in kind taxation. This is as long as the workplace chargers are available for all employees to use.
Where your employer pays for public charging, for example with a charge card, in association with your company car, you will not be liable for any BIK.
If your employer pays for your public charging card for business and/or personal use when you use your own electric car – this will be subject to benefit in kind taxation.