Search
HM Revenue & Customs (HMRC) has updated its Employment Taxes Manual to provide further clarification on the tax treatment of certain benefits associated with electric company cars.
The guidance provides clarity on public charging. Where an employer provides a charge card for employees with a taxable company car to access public charging points, this will continue to fall within the existing exemption and will not create an additional taxable benefit. The BVRLA has engaged with HMRC on this issue following questions raised by members, helping to secure clarification on the treatment of charge cards.
The update also confirms that where an employer pays for the installation of solar panels or a home battery at an employee's home, the cost will be treated as a separate taxable Benefit in Kind (BiK). HMRC has confirmed that these installations are not covered by the existing exemption for benefits connected with a taxable company car, as their link to the vehicle is considered too remote.
The updated guidance provides greater certainty for employers operating company car and salary sacrifice schemes, particularly those considering how best to support employees charging electric vehicles at home and on the public charging network.
Members with any questions can contact [email protected].
