Claiming for Charging a Company EV at Home
Charging is essential for owning an EV. With more employers offering EV salary sacrifice schemes, the purchase of company EV’s is increasing. This means more people require EV home charging points to charge their vehicles at home. However, charging your company EV at home increases energy costs, and those costs can be charged to you.
But driving a company EV shouldn’t put you out of pocket. In fact, there are ways you can get your money back if you’re charging your company EV at home. Pro EV explains the simplest and most effective ways to claim back your company’s charging costs.
Business Use VS Private Use
The first thing to understand as an employer or employee is the difference between EV private use and business use, as much of the reimbursement confusion begins here.
HMRC allows businesses to reimburse the cost of charging a company EV, but that does not mean every mile you drive can be claimed back.
Trips that are made for work, such as visiting clients or travelling to meetings, usually count as business mileage. However, commuting and personal journeys are treated as private mileage.
This is why having a clear company EV home charging policy matters. It can help employers calculate how employees are reimbursed. It also gives employees a straightforward way to submit EV charging claims.
Look below for some ways you can begin to claim back.
How can I claim back my EV costs?
You might ask, so how can I claim back? There are a few options for you to claim back your home charging costs, some simpler than others. Take a look below to find the best way for you:
This is arguably the simplest method for company car drivers and provides the current, up-to-date rates for all electric vehicles in the UK.
This is a fixed rate (set by HMRC and updated quarterly) that employers can use to reimburse their employees for business miles driven in their company EV. Instead of tracking your exact electricity costs, you just multiply your business miles by the AER.
It’s important to remember that if you’re charging your car for business reasons, then your reimbursed costs are tax and National Insurance-free.
From 1 March 2026, HMRC’s advisory rates for fully electric company cars are 7p per mile for home charging and 15p per mile for public charging.
Example
Take this example. If the AER is 10p per mile and you drive 100 business miles, you can claim back £10.
Some benefits of using HMRC’s AER are:
- Actual charging costs don’t need to be tracked
- Simple to use and admin-friendly
- Tax-efficient when used correctly
However, there are some important factors to consider:
- This only applies to fully electric company cars (not hybrids)
- It covers business mileage only, not personal use
2. Claiming Actual Charging Costs
If you prefer, or if AER doesn’t apply in your situation, you can claim the actual cost of the electricity you use when charging your company EV.
This works best when:
- You charge your business EV at home and can track usage
- You use a dedicated EV tariff or smart charger
- You have specific receipts from public chargers
What you’ll need:
- Charging receipts or invoices
- Mileage logs (to separate business vs personal use)
This method can be more accurate, but it does require more record-keeping.
3. Smart Charging Reimbursement
This one is useful if you have a smart charger. Some businesses install smart chargers that automatically track energy usage, making it much easier and more accurate to claim back your costs.
4. Public Charging Expenses
If you charge your EV at public charging points for business trips, you can usually claim these costs back as expenses.
How it works:
- Pay using an app, RFID card, or company account
- Submit receipts or invoices
- Claim through your employer’s expense system
If you’re a fleet driver, your company may use charging cards or platforms that put all costs into one monthly invoice.
Now that you’ve got more information, you can decide which choice is best for you to make your claim.
Do you need to worry about VAT when claiming EV charging costs?
Most of the time, VAT is not a factor employees need to consider when claiming back EV charging costs. The main thing is whether you are charging a company electric car for business mileage rather than private journeys.
If you charge your company EV at home, HMRC says the electricity supply is made to you as the employee, not to your employer. This means your employer will usually reimburse the cost under their normal process, but they generally cannot reclaim the VAT on your domestic electricity bill.
For employees, the takeaway is pretty simple. You usually do not need to work out VAT yourself. What matters more is keeping a clear record of your business mileage, charging activity, and any receipts or charger data your employer requests. Many employers use the Advisory Electricity Rate mentioned earlier in the blog to make EV home charging reimbursement easier.
Still have questions?
Frequently Asked Questions
Does commuting count as business mileage?
No. In most cases, commuting is treated as private use, not business use. That means your EV home charging reimbursement should normally relate to genuine business journeys, such as travelling to client meetings or temporary workplaces, rather than everyday travel to and from your normal place of work.
Can my employer reimburse my home electricity bill without it becoming a taxable benefit?
Yes, where the reimbursement is for the domestic electricity used to charge a company car or van, HMRC says it can fall within the section 239 exemption, so there is no separate benefit-in-kind charge on that reimbursement.
Can I claim for charging my own electric car if it is not a company car?
That is a different set of rules. The HMRC company-car home charging guidance applies specifically to company cars and vans. If you use your own EV for work, reimbursement is handled under different mileage allowance rules rather than the company-car exemption.
Do I need to work out VAT myself when claiming EV charging costs?
Usually not. For most employees, the main issue is whether the claim relates to business mileage in a company electric car. VAT is generally handled at employer level rather than by the employee making the claim. HMRC’s published guidance on EV charging reimbursement focuses mainly on the tax treatment of the reimbursement and the conditions for exemption.
