Reclaiming VAT on Electric Car Charging
Posted on 8th February 2023 by Joanne Stoneman
Where your business pays for the electricity, e.g. from a charging point at your premises, you still need your employee to tell you how much of the charge related to business and how much to private journeys.
Reclaiming VAT on electric car charging - Business pays for charging of an employee’s car
Where your business pays for the electricity, e.g. from a charging point at your premises, you still need your employee to tell you how much of the charge related to business and how much to private journeys.
To do this you must first identify how much of your firm’s electricity bill relates to car charging, then how much relates to charging each employee’s car and finally adjust that amount to reflect the amount of VAT relating to business mileage only. As you will know it is impossible to identify VAT on business-related charging costs accurately. HMRC understands this and will accept any fair or reasonable calculation.
Unless your firm’s car charging costs are significant there’s a good argument for not bothering to reclaim any of the related VAT just to avoid the hassle.
You can’t reclaim VAT paid on employee home charging costs even where some or all of it relates to business journeys.