If an employee charges a vehicle at a public charging point, the supply of electricity is made to the employer, who can then recover the VAT on the cost, just as where the employee charges the car at work. Sole proprietors and partners in a business partnership can also recover VAT when they charge vehicles at home. In all cases, only the VAT relating to business use of the vehicle can be claimed, calculated by reference to mileage records.
However if an employee charges a vehicle at home, the supply of electricity is made to the employee not the employer. The employer therefore cannot recover the VAT. HMRC is reviewing what evidence could be provided to allow employers to claim the VAT where an employee is reimbursed for the cost of charging vehicles at home for business purposes.
