How to claim for charging an electric company car

Although it’s often one of the biggest concerns for people considering an electric car, worries about charging tend to dissolve quickly once they’ve made the switch.

Ditching fuel station runs for topping up wherever you park – at home, at work, or on the road – can turn out to be a real perk once you get used to the change of routine. However, that mix of fuel sources means travel expenses get a little more complicated than claiming for a tank of petrol or diesel. Here’s what you need to know. 

What can you claim for charging at home?

Most electric vehicle drivers charge overnight at home. It’s the most convenient way to top up, but a little challenging from an expenses perspective. After all, it’s hard to separate the electricity used to charge your car from the rest of your household consumption, let alone split that usage into business and private journeys. 

Autocar’s company car tax calculator shows exactly what you’ll pay for every make and model

As far as HMRC is concerned, electricity isn’t a fuel, but it does have a per-mile rate for drivers to claim back the cost of business trips in an electric car. The Advisory Electric Rate (AER) is currently set at 5p per mile, which is roughly in line with what you might expect to spend charging a typical mid-size EV (like a Nissan Leaf) on a flat-rate home electricity tariff. So it should cover your costs. 

The alternative can be complicated. HMRC treats reimbursed domestic electricity as a taxable Benefit-in-Kind, but drivers can claim tax relief for business miles at the end of the financial year. The only exceptions are vehicles which are just for business use, or (bizarrely) if your employer pays for your home electricity bills up front. 

What can you claim for charging in public?

The AER doesn’t stack up quite so well if you’re using some of the faster public charging networks. According to the latest Government data, the average cost of a kilowatt-hour of electricity is 17.4p at home, which compares to 69p at one of Ionity’s ultra-fast chargepoints. HMRC allows employers to adjust the AER if they can prove it’s leaving drivers out of pocket, but any excess is open to being taxed as additional income. 

Suppliers have recognised that this is an issue. Several fuel card companies already let drivers pay for charging sessions and automatically invoice the costs back to their employer, just like a tank of petrol or diesel. Most charging providers will also provide VAT receipts or monthly statements showing how much you’ve spent, and some will automatically reimburse drivers as part of their wages. This can help take the hassle out of making a claim. 


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