Table of Contents
With many businesses hopping on the electric vehicle trend, companies are now offering more incentives for their employees in the form of Benefits in Kind (BIKs) than ever before. Businesses that promote sustainability and have an EV charging infrastructure can encourage employees to use company resources to charge their company vehicles from the comfort of their home.
If your company is compliant with His Majesty’s Revenue and Customs (HMRC), then the company pays for the home chargers and the EV expenses that come with them. Read on to find out all about company-sponsored home chargers, how you can use BIKs to charge your EV at home, and the dos and don’ts that dictate how much – and exactly what you can use:
There are three ways that electric car owners can charge their cars:
Electric car charging points at the business premises are an important facility for employees and visitors. They provide a convenient and free way for them to charge their cars while they’re parked at the premises.
However, there is another benefit that comes from HMRC’s policies: company-paid home chargers. If your company is enrolled in the Workplace Charging Scheme (WCS) or has invested in an EV charging infrastructure, then it may be able to extend the benefits to its employees as well.
EV charging points are the petrol station equivalent for EVs, except that they can be installed anywhere with the right permissions and tools.
Most EV owners have charging points installed in their homes, as it is the most convenient way to charge their cars. However, if your company has provided you with an EV as part of your package, then you may be eligible for a free EV charging point installation via the company.
The reason for this is simple. The company is pursuing sustainability initiatives in the form of electric cars and electric vehicle charging stations. Most modern businesses are moving towards extending these benefits to their employees to increase their brand image and help their employees adopt a sustainability mindset.
So, if your company provides you with an EV to use for business purposes, you will be eligible for an installation at the company’s expense – but what about the tax aspect of all of this?
The good news is that, as per the latest HMRC guidelines, if an employer reimburses the electricity cost for charging a company car at home, HMRC treats it as tax-free. This exemption applies even if the employer pays for a charge card used at public charging points. This is conditional, though, because it requires the reimbursement to be strictly for charging the company vehicle. This specific exemption falls under section 239(4) of ITEPA 2003.
You will need to coordinate and speak to the HR and accounting departments of your company to learn more about the specifics of this BIK. However, in most cases, this is a highly accessible and beneficial perk for employees who can enjoy the EV lifestyle without having to pay for it.
This benefits the company in two ways. First, it allows employees to use EVs and therefore push the sustainability initiatives of the company, making the brand more appealing in the job market and with customers.
Second, it provides the company’s employees with a convenient way to charge their vehicles from the comfort of their home. Once the employees are used to the EV ecosystem, there is a high probability of them investing in their own electric car and charging system in the future as well.
Electricity reimbursement was initially not covered in HMRC rules for EVs. However, a recent change in the policies indicates that HMRC now considers these BIKs to be tax-free so long as the EV infrastructure is used for company cars.
The HMRC uses the Advisory Electricity Rate or AER as a measure for determining the permitted reimbursement of electricity for these chargers. Before Sept 1, 2025, HMRC permitted the reimbursement using an Advisory Electricity Rate of 7p per mile. However, from 1 September 2025, this policy has been updated, and the AER has now been split:
HMRC applied these new rates for business mileage in company cars to help reflect actual charging costs more accurately. Therefore, the employer and employee can easily track their usage and electricity cost via the home charger.
In the context of tax exemption, the home EV charger installation and electricity reimbursement apply strictly to company cars, and not to personal-use EVs.
It is important to note that if your employer pays for a home charger or reimburses charging costs for a personal-use vehicle, then it is treated as a taxable benefit or earnings, respectively, and is subject to standard income tax rules.
For maximum benefit and to save EV expenses, you must prove that the vehicle in your possession is provided by your company for business use. This way, you will not only be eligible for the full BIK but will also get maximum tax relief as per the HMRC.
You might already know about the several benefits of having EV chargers at the workplace. These chargers are your best bet if you own an EV and regularly commute to your workplace on weekdays. While most people who own an EV will invest in a home charger, some people may not have the space required for the chargers – and this is where workplace chargers come in handy.
They are convenient and let you enjoy the perks of owning an EV without worrying about the hassle of finding the right charger or spending time at the charging station. Just plug in your car and go to work. By the time you come back by the end of the business day, you will have a fully charged vehicle.
However, if you have the space and opt for a company-funded EV charger for your company car, then there is a whole range of specific benefits. Let’s look at some of the most important ones:
Range anxiety is a big issue and has haunted the EV industry from the start. It is the phenomenon of knowing that you have a limited range on your car, coupled with a limited charging network to get you to your destination.
Although charging stations have become a norm in the modern world, the charging time and speed of chargers are still subject to the laws of physics, which means that charging your EV will take some time compared to petroleum-powered vehicles, and you will have to plan ahead if you wish to charge your vehicle.
Workplace charging points minimise range anxiety since employees can simply plug in their car and have it fully charged by the end of the day. However, by having an EV charger at home, you can further reduce stress by simply charging your car overnight. This can come in handy where there are limited chargers at the workplace, and if you have a tough time finding a spot for your car during busy hours.
EVs provided by your employer are an excellent way to get a taste of the EV lifestyle without having to bear EV expenses. This is especially important for people who own petroleum-powered vehicles and are sceptical of the use of EVs. Once you start using EVs and develop a system for charging at home and at the workplace, you will quickly realise the benefits of owning an EV.
Furthermore, the fast development of new EV chargers in different regions will further support your decision to switch to EVs. EV charging stations were once a novelty, but after decades of support, they have become a part of life and are easily accessible.
It wouldn’t be far off to assume that employees who use company-provided EV cars and benefits will likely come to appreciate this technology and adopt it themselves or become ambassadors of EVs for their friends and family.
Our world has finite resources, and whatever we use as fossil fuel ends up in the ecosystem as harmful byproducts. These byproducts cause several problems, ranging from health issues to environmental degradation.
EVs are an excellent way to not only help make a difference and promote an eco-friendly environment, but they are also a great way to help reduce your personal carbon footprint.
By switching to EVs, the world is likely to see a steady decline in greenhouse gas emissions and carbon loads. This can potentially help halt global warming and promote a better tomorrow for future generations.
As discussed above, an important aspect of adopting the EV lifestyle has to do with EV expenses. Most people believe EVs to be expense-heavy, from owning a car to then investing in an EV charging infrastructure. However, the key here is to realise that these EV expenses are only initial. In other words, you are likely to end up saving more in the future compared to conventional vehicles.
Electricity is much cheaper than petrol and diesel, and since electric cars don’t run on oil, they don’t require oil changes. EVs also have significantly fewer moving parts than fuel-powered vehicles and are typically easier on the brakes and don’t wear off as quickly, leading to fewer brake replacements.
Add to this the fact that you can eliminate your EV expenses if you opt for company-paid chargers, and you have an excellent case for completely shifting to EVs for the long term.
If you are a business owner looking to invest in an EV charging infrastructure to benefit employees and boost your company’s brand image, then it is important that you keep in mind all the expenses that go into installing, maintaining, and using an EV charger.
Let’s break down the costs according to what you can expect from a typical installation.
The installation cost for commercial charging points depends on factors such as the charger model, charging level, the number of chargers installed, EV supply equipment, location of the charger, and the installation (including labour) itself.
On average, these chargers will cost between £1,000 and £1,500 +VAT. However, as mentioned above, there are also funding options for businesses where they can qualify for a £350 grant under the Office for Zero Emission Vehicles (OZEV) Workplace Charging Scheme (WCS) to support them with the initial cost of purchasing and installing new charging stations.
This grant has an eligibility criterion that highlights a few conditions. First, the business owners must declare a need for the charge points on the application. This can include promoting pro-electric BIKs, such as encouraging staff members and employees to switch to electric cars. Business owners can also highlight their need to charge a new or existing fleet of EVs or provide a charging solution for visitors at the business premises.
As per the regulations highlighted under the WCS, charging ports must provide at least 3kW of power, with the supply not being affected by charging multiple cars simultaneously. They must also have off-street parking used by the business’s staff and visitors, and have the EV charging points installed by an accredited OZEV-approved installer.
Under this scheme, if the business receives a £350 grant from the government and the net installed cost of the charging points amounts to £1150 + VAT, the charger can easily pay for itself with up to £250 gross profit per year. So, in 3 to 6 years, you can expect a full return on your initial investment.
While EVs don’t have maintenance charges, you will need to maintain the charging point for maximum efficiency. The annual running costs depend on the chargers and management model you practice, with the average cost not likely to exceed £50 per charger per year.
If you account for this cost and subtract it from the typical annual gross profit of £250, you’ll be left with a £200 annual net profit from a single charging point. In other words, during the weekdays, with one user per day, the payback time for the charger can be 6 years. With several users per day, the payback time can be twice as quick, covering the total costs in 3 years only.
Owners should realise that a Return on Investment (ROI) of 3 to 6 years is an incredibly reasonable payback time for the charging points, considering the numerous benefits that they provide the employees, employers, and the business as a whole.
At Calder Electrical, we can install EV chargers for domestic and commercial premises in line with the current regulations and can offer a government incentive to reduce the installation costs.
We are authorised and registered OZEV installers, and our charge points come with a 3-year warranty. We offer all kinds of different options to choose from, such as wall-mounted to freestanding pedestal units, and with different types of chargers and charging speeds.
Contact us right away for our expert opinion and professional services, and for more information on whether a company can pay for an employee’s home EV charger and what the HMRC does and doesn’t allow.
Photo by Andersen EV on Unsplash
