HMRC’s VAT on Electric Car Chargers

 VAT on Electric Car Chargers

Highlight the text in the article to activate the speech reader function.

Her Majesty’s Revenue and Customs (HMRC) has confirmed that the VAT on open electric vehicle (EV) charging will remain at 20% after demands for clearness from organizations around decreased rates. This form of power isn’t covered by the 5% reduced VAT rate that applies to fuel and energy for homegrown use, nor by HMRC’s ‘de minimis’ principles where supplies of specific small amounts of power and force are usually qualified for the 5% rate. 

HMRC says this is because the electricity is provided at various public places instead of a house or a structure, and isn’t generally a continuous stock to one individual/company where the rate of supply could be determined by the ordinary VAT rules for provisions of power. It is sensible to accept that input tax recovery would be applied to these provisions of power, all things considered to different supplies of fuel for engine vehicles. Be that as it may, there is a distinction in approach contingent upon whether you are a sole owner or, on the other hand, a worker. 

The public authority’s plans for the future is to have all vehicles to be electric, which implies that instead of paying 20% VAT on topping off at gas stations, most of the street fuel will be charged at 5% VAT on the power used to charge them from home. It is conceivable that HMRC’s prohibitive way of dealing with their VAT treatment expects this progressive loss of income from drivers. What’s more, it is most likely that this new strategy has been rushed out as a response to regular inquiries being asked on client helplines. 

HMRC says that a sole merchant might recuperate VAT paid on charging their vehicle at home for business purposes, by differentiating their electricity bill between business and private use. They can likewise recuperate VAT on charging an electric vehicle for business use at different spots, subject to the typical input tax rules.

Nevertheless, workers can’t recover VAT on charging an electric car at home for excursions for work because the stockpile of power is associated with the representative and not the business. Where representatives assess a business’ electric vehicle (that is utilized for both business and private purposes) at the business’ premises, just the VAT on the business component might be recovered. 

This is a chance with proprietors of conventional petroleum or diesel vehicles that claim mileage rates from their managers. They like this are qualified for input tax recovery on fuel provided to the worker for business use.

When representatives charge their vehicles at work, the business can recover VAT to the degree that it is utilized for business purposes; or recuperate the VAT in full and make a relating VAT tax to the worker for private utilization.

As indicated by HMRC, it is possible to recover VAT for the stock of power used to charge the EV. This incorporates the ability for private use. Nonetheless, you will be obligated to an output tax charge on the sum for personal help. It is because a ‘considered stockpile’ has been made. On the other hand, you can recuperate VAT on just the business component. The standard input tax rules apply.



(n.d.). Retrieved from

Electric vehicles and charge points. (n.d.). Retrieved from Transport for London:

EV charging company hikes UK prices after VAT rule clarification. (n.d.). Retrieved from

Osprey unveiled as Shell’s preferred partner for EV charging installs across UK franchised forecourts. (n.d.). Retrieved from

Leave a Reply

Leave a Comment

Your email address will not be published.

Similar Articles

Tax Raid on Pensions

Tax Raid on Pensions A Way Out of COVID-19?

A triplet of changes to pension contributions are being drawn up, including lessening the pensions lifetime allowance from just over £1m to around £800,000. Bringing down this limit has a significant impact, as pension savings are heavily taxed above this allowance

Read More »
Self-Employment Income Support Scheme

Self-Employment Income Support Scheme

The Self-Employment Income Support Scheme was initially introduced on March 26, 2020, and gave an underlying grant to independently employed people whose organizations were unfavorably influenced by the pandemic.

Read More »

Our Experts

Junaid Usman

Junaid Usman

Junaid has been instrumental in the achievement of our success across various regions and he specialises in business management, accounting and tax advisory services.

Faizan Rashid

Faizan Rashid

Faizan is good at providing well-thought-out strategies and solutions to complex problems in Business Development which makes him a proficient overseer of our clients.

Most Popular

Importance of Accounting for Your Ecommerce Business

Importance of Accounting for Your eCommerce Business 

Accounting has always been the lifeblood of many businesses. Here are things every eCommerce business should know about it, including its types, how it differs from bookkeeping, its purpose, the need for an accountant, what financial records to keep, and how long those records should be kept.

Read More »


The quickest way from A to B is usually a conversation. So, if you want to find out more about how Legend Financial can boost your business, get in touch. We’ll give straight answers so you can make a confident decision, fast.

Scroll to Top