Workplace Charging for All-electric
and Plug-in Hybrid Vehicles
Background
As reported in the news this morning the Government continues to promote the move to electric cars with their proposals that all new build properties should be required to install charging points as standard.
This comes on the back of confirmation on Friday that employees charging their vehicles at work will no longer be subject to a benefit in kind. Previously this had been considered a taxable benefit for employees with Class 1A payable by the employer.
Details
The change in the law will ensure that no benefit in kind will arise in respect of the provision, at or near an employee’s workplace, for the charging of all-electric and plug-in hybrid vehicles. For the exemption to apply however, the recharging facilities must be made available to all employees at that workplace, and not just a select number of individuals. In addition, the exemption does cover vehicles where the employee is only a passenger. The exemption does not cover the reimbursement by the employer for charging elsewhere paid for by the employee.
It is important to note that the Government also confirmed on Friday that this exemption would take retrospective effect from 6 April 2018. This new ruling does not affect all electric company cars and vans as the provision of electricity recharging facilities at the workplace for these vehicles is already exempt.
The above is only an outline of the changes that have come into effect and if you would like further information on the other tax reliefs available for electric cars and charging points then please contact our Tax Director, Jenny Marks.
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