Charging a Company Car at Home UK: Tax & HMRC Rates

The current answer, checked 15 July 2026

For fully electric company cars, HMRC's advisory rates from 1 June 2026 are:

These are company-car rates. They are not the mileage rates for an employee's own car, and they do not require an employer to offer reimbursement. The employer's expenses policy decides what can be claimed.

Source: HMRC advisory fuel rates, last updated 22 May 2026. HMRC reviews the rates on 1 March, 1 June, 1 September and 1 December; the next routine review date is 1 September 2026.

Company car or your own car?

This distinction changes the calculation:

For an employee's own car, the 2026/27 National Insurance mileage rate is 55p for all business miles. These own-car figures apply to cars generally, not only EVs. Source: HMRC rates and thresholds for employers, 2026 to 2027.

How the company-car advisory rates work

HMRC says a payment no higher than the advisory rate for business travel creates no taxable profit and no Class 1A National Insurance liability. An employer can use a higher amount where it can show that the actual business-travel electricity cost per mile is higher. Without that evidence, unsupported excess has to be treated under the relevant tax and National Insurance rules.

Where the company car is charged at both home and public locations, HMRC says the mileage can be apportioned. The split must be fair and reasonable. A sensible record includes:

• business miles and journey purpose
• the charging location used for the relevant mileage
• charging receipts or session records where the employer requires them
• the employer's method for mixed home and public charging

HMRC's advisory page explicitly permits a higher evidenced rate when actual cost per mile is higher, including public charging above the benchmark. It does not support presenting the difference between a cheap tariff and the advisory rate as guaranteed income.

Reimbursement of the electricity itself

HMRC's Employment Income Manual EIM23900, updated 8 July 2026, says there is no separate charge under the benefits code when an employer reimburses electricity used to charge a company car at home or at a public charger, including where the car has business and private use. The employer must ensure the reimbursement is solely for that company car and should apply the correct National Insurance treatment.

That is broader than saying every payment labelled “charging” is automatically tax-free. Payroll still needs to know who owns the car, what is being reimbursed and how the amount was calculated.

Home and public charging records

For business-mile reimbursement, start with the employer's policy. Some employers use the advisory rates; others reimburse evidenced actual electricity cost. If home and public charging are mixed, agree the apportionment method before submitting claims.

The domestic electricity price also changes over time. Current reference points on this site are 26.11p/kWh for the representative standard-variable unit rate and 8p/kWh during the base Intelligent Go window. Those prices help explain actual cost, but they do not change HMRC's published mileage rates.

Benefit in Kind for the company car

For a zero-emission company car, the appropriate percentage for 2026/27 is 4%. The taxable car benefit starts with the car's appropriate list price and applies the relevant percentage; the employee's eventual tax depends on their circumstances.

Source: HMRC's 2026/27 company-car appropriate-percentage table. Do not reuse the 2025/26 percentage for a 2026/27 calculation.

Can the employer pay for the home chargepoint?

For a company car, HMRC's EIM23900 says an employer-paid chargepoint installed at the employee's home creates no taxable benefit because section 239(4) ITEPA 2003 applies. The same manual treats an installation for an employee-owned car as a taxable benefit based on cost.

Solar panels and a home battery do not inherit the company-car chargepoint exemption. HMRC says their connection with running the taxable car is too remote, so they are treated separately.

If the employee is choosing the charger, compare the final installed quote and the reporting evidence required by the employer. Current unit prices include:

• Ohme Home Pro: £539
• Tesla Wall Connector: £475
• Hypervolt Home 3 Pro: £625

Session history can be useful, but confirm the precise export or receipt format before buying. A feature described in an app is not automatically evidence accepted by an employer.

What to do next

1. Confirm whether the vehicle is a company car or your own car.
2. Read the employer's expenses policy and ask how mixed home/public charging is apportioned.
3. Keep business-mile and charging records in the format payroll requests.
4. Recheck HMRC's rate page after each quarterly review.
5. Ask payroll, an accountant or HMRC about circumstances that fall outside the published examples.

This article is general information, not personal tax advice. The EV tariff comparison, charger comparison and UK EV Charging Cost Index provide the supporting energy and hardware figures.