Businesses can recover VAT incurred on charging electric vehicles for business use, whether charged at work or at public charging premises. Sole proprietors or partners in a partnership business can also recover VAT if they charge their EV for business purposes at home. Mileage records must be kept to calculate the cost of charging for business and private use. If an employee charges an EV at a public charging point, the business can recover VAT on the cost of charging. However, if an employee charges an EV at home, the employer cannot recover the VAT. HMRC is reviewing the reimbursement of actual electricity costs for business purposes and considering simplification measures for VAT accounting on private use. The VAT rate for public charging is 20%, but there may be a legal challenge to this as it should be 5% for all forms of EV charging. Hybrid cars are treated as petrol or diesel cars for VAT purposes.
Source Marcus Ward
