If your company owns an electric car, there are several costs the business can claim. It is also worth knowing upfront that having a company car available for private use does give rise to a personal tax charge. But for a zero-emission car this charge is low compared with petrol or diesel, and is one of the main reasons electric cars work well as company cars. Here is how the claimable costs work, what the personal tax position looks like, and what records you need to keep.
1. Charging at home
The electricity used to charge the car at home can be claimed from the business. The company reimburses you for the cost of each charge. Most home chargers come with an app that shows exactly what each charge costs, making it straightforward to work out the figure.
Keeping those records is essential. If the records are not adequate to show the actual additional cost of charging the company car, HMRC treat that reimbursement as a taxable benefit subject to income tax and National Insurance. Make sure you keep a clear log of every charge.
As an alternative to claiming the actual electricity cost, HMRC publish an advisory electric rate that can be used instead. From 1 September 2025 there are two rates, one for home charging and one for public charging.
One important advantage: electricity is not treated as a fuel for company car tax purposes. This means there is no separate fuel benefit charge, even if the company pays for all of your charging, including any private mileage.
2. Servicing and insurance
Because the car is a company asset, the business can pay for servicing and insurance directly. Once the company car benefit charge applies, which it does when the car is available for private use, no separate benefit charge arises for connected costs such as repairs and insurance, so these can flow through the company without additional tax consequences.
3. Home charge point installation
The cost of installing a charging point at your house for the car can be claimed by the business as a capital allowance, with the annual investment allowance (AIA) being the main route.
Installing a charge point at the director's or employee's home does not give rise to an additional personal tax charge on the individual.
Get the paperwork right
Two habits make these claims straightforward.
• Keep your charging records. Use your charger's app to log what each charge costs. Without adequate records, the company’s repayment to you is taxable and subject to National Insurance.
• Put invoices in the company's name. When you have a charge point installed, make sure the invoice is addressed to the company, not to you personally. The same goes for servicing and insurance, which should be paid by the business.
The company car benefit charge
Putting a car through your company does mean a personal tax charge, known as a benefit in kind. The charge is based on the car's list price and its emissions. For a zero-emission electric car, the rate used to work out that charge is 4% of the car's list price for the 2026/27 tax year, rising to 5% in 2027/28 and higher in later years. This is significantly lower than the rates that apply to petrol or diesel cars, and it is one of the key advantages of going electric.
The amount will depend on your particular car and personal tax position, so it is worth discussing this with your adviser before committing to putting a car through the company.
Need a hand?
If you are thinking about putting an electric car through your company, or you already have one and want to check you are claiming everything you can, get in touch with the EOACC team.
This article is for general information only and must not be relied on as tax or financial advice. Acting on any of the information is entirely at your own risk.