Claiming for Charging a Company EV at Home

As more businesses switch to electric cars and vans, many employees are now charging a company car at home rather than relying entirely on public charging infrastructure.

The growth of salary sacrifice schemes, low Benefit in Kind BIK tax rates and improving EV technology has made the electric company car more attractive than ever before. However, one area that still causes confusion is understanding who pays for home charging and whether drivers can claim back electricity costs.

If you use a company car at home for both business and personal journeys, understanding the reimbursement rules is important for both employees and employers.

This guide explains how claiming for charging a company EV at home works, what HMRC guidance says, how reimbursement is typically handled and why electric vehicles like the Skywell BE11 are becoming increasingly popular as company cars.

Can You Claim for Charging a Company EV at Home?

Yes, in many cases, employees can claim reimbursement for charging a company EV at home, although the exact process depends on the employer’s policy, how the vehicle is used, whether the charging relates to business mileage and the reimbursement method being used.

Unlike petrol or diesel company cars, where reimbursement is often based on fuel receipts, EV charging costs are linked to electricity usage. This means employers and employees may need different systems to accurately track charging costs and business mileage. Many businesses now reimburse staff using HMRC advisory electricity rates, smart charger usage reports, direct electricity cost calculations, or company charging cards for public charging. As EV adoption continues to grow, reimbursement methods are evolving, so approaches can vary significantly from one employer to another.

How Does Charging a Company Car at Home Work?

When an employee charges a company car at home, the electricity used is simply added to their household electricity bill. Most drivers choose dedicated home charging systems rather than standard domestic sockets because they offer faster charging speeds, improved safety, better energy efficiency and more accurate usage monitoring. Home charging is generally the most convenient and cost effective way to run an electric vehicle, particularly for employees who regularly travel for work. For many company car drivers, charging soon becomes part of their daily routine, with the vehicle plugged in overnight and ready to go by the next morning. The Skywell BE11 supports AC charging up to 11kW, making it well suited to efficient overnight home charging and helping drivers start each day with a fully replenished battery.

HMRC Advisory Electricity Rate Explained

HMRC introduced the Advisory Electricity Rate (AER) to help simplify reimbursement for electric company car drivers.

This rate is designed to cover the cost of electricity used for business mileage when charging an electric vehicle.

Unlike petrol or diesel reimbursement rates, the electricity advisory rate specifically applies to fully electric vehicles.

The rate is reviewed and updated periodically by HMRC to reflect changing electricity prices.

Employers can reimburse employees for business travel using this advisory rate without creating an additional taxable benefit, provided the reimbursement relates specifically to business mileage.

Because electricity prices can fluctuate significantly, some employers choose to reimburse actual charging costs instead.

What Can Employers Reimburse?

There are several ways businesses may handle EV charging reimbursement.

Business Mileage Charging

Many employers reimburse charging costs based only on business mileage.

In this scenario:

• Employees track business journeys
• Reimbursement is calculated using HMRC advisory rates
• Personal mileage is excluded

This approach is often the simplest from a tax and payroll perspective.

Full Home Charging Costs

Some employers reimburse the full cost of electricity for charging a company EV at home.

This may involve:

• Smart charger reporting
• Meter readings
• Energy monitoring software
• Electricity tariff calculations

This approach can work particularly well when employees use dedicated smart home charging systems.

Public Charging Costs

Many businesses also reimburse public charging costs separately.

Drivers may use:

• Company charging cards
• Expense claims
• Fleet charging apps
• Public charging subscriptions

Public charging costs are often higher than home charging, especially when using rapid charging stations.

How to Calculate EV Charging Costs at Home

The cost of charging an electric vehicle depends on:

• Electricity tariff
• Battery size
• Charging efficiency
• Time of charging
• Type of charger used

The easiest way to estimate charging costs is:
Battery size x electricity cost per kWh

For example:

• 72kWh battery
• Electricity rate of £0.25 per kWh

Using an electricity price of 25p per kWh as an example, a full charge of a 72kWh battery would cost approximately £18 (72 x £0.25 = £18). The Skywell BE11 is available with either a 72kWh or 86kWh battery, giving drivers flexibility depending on their range requirements. It’s important to remember that actual charging costs will vary depending on electricity tariffs, charging times and energy prices. Drivers who take advantage of off peak electricity tariffs can often reduce charging costs significantly further, making home charging even more economical. For company car drivers covering high annual mileage, charging at home can deliver substantial savings compared to running a petrol or diesel vehicle, particularly as fuel costs continue to fluctuate.

Smart Chargers and Home Charging Reimbursement

Smart home charging systems are valuable for company EV drivers, offering a range of features that make charging more convenient and easier to manage. Modern chargers can provide detailed charging history reports, electricity usage monitoring, scheduled charging, cost tracking and even the ability to separate business and personal charging activity. This information can help simplify reimbursement calculations for both employees and employers, making it easier to accurately track charging costs associated with business use. Smart charging systems can also help reduce electricity bills by automatically scheduling charging sessions during cheaper off peak tariff periods. For businesses managing multiple electric company car drivers, access to smart charging data can improve reporting accuracy, streamline expense claims and reduce administrative complexity.

Salary Sacrifice and Electric Company Cars

Salary sacrifice schemes have played a major role in accelerating EV adoption across the UK by making electric company cars more affordable for employees. Under a salary sacrifice arrangement, employees agree to exchange a portion of their gross salary in return for the use of an electric company car, often benefiting from tax efficiencies and low Benefit in Kind (BIK) rates. Because electric vehicles currently attract favourable BIK taxation, many drivers can access higher value vehicles at a significantly lower monthly cost compared to traditional petrol or diesel alternatives. Vehicles such as the Skywell BE11 can be particularly attractive within salary sacrifice schemes thanks to their long electric range, lower running costs, premium SUV practicality, reduced emissions and competitive charging costs, helping employees enjoy the benefits of electric driving while potentially lowering their overall motoring expenses.

Is EV Charging Reimbursement Taxable?

In many situations, reimbursement for business electricity used to charge a company EV at home is not treated as a taxable benefit, provided the arrangement complies with current HMRC guidance. However, the tax treatment can vary depending on several factors, including whether the charging relates to business or personal use, how electricity costs are reimbursed, the structure of the employer’s payment process, and whether workplace charging facilities are available. To avoid potential issues, employers should ensure their reimbursement policies are clearly documented and aligned with the latest HMRC guidance. Employees may also find it helpful to discuss reimbursement arrangements with their payroll department or a qualified tax adviser to ensure they fully understand how any payments are treated for tax purposes.

Common Challenges with Charging a Company EV at Home

Although EV reimbursement systems are improving, some challenges still exist.

Tracking Business vs Personal Charging

Separating business and personal electricity usage can sometimes be difficult without smart charging systems.

Electricity Price Fluctuations

Rapidly changing electricity tariffs can complicate reimbursement calculations.

Public Charging Receipts

Drivers using multiple charging networks may need to keep detailed charging receipts for expense claims.

Employer Policy Differences

Not all employers currently have clear EV charging reimbursement policies.

Why Electric Vehicles Like the Skywell BE11 Make Sense for Company Car Drivers

Electric vehicles are becoming increasingly popular as company cars thanks to their low running costs, favourable Benefit in Kind (BIK) taxation and everyday practicality. The Skywell BE11 has been designed to support long distance electric driving while delivering the comfort, technology and space expected from a modern premium SUV. With up to 304 miles of WLTP range, 11kW AC charging, 80kW DC rapid charging, a spacious interior and advanced infotainment features, the BE11 is well suited to both business and personal use. For employees who regularly travel for work, it offers the range, charging flexibility and comfort needed for commuting, client visits and longer business journeys. Its impressive range can also help reduce the frequency of charging, making day to day ownership even more convenient and practical.

Tips for Claiming EV Charging Costs Successfully

If you charge a company car at home regularly, these simple tips can help make reimbursement easier:

• Keep accurate mileage records
• Understand your employer’s reimbursement policy
• Use smart charging systems where possible
• Save public charging receipts
• Monitor electricity tariffs
• Separate business and personal charging where practical
• Track home charging usage carefully

Clear records can help avoid confusion and ensure reimbursement claims remain compliant.