Businesses can reimburse employees for electricity used to charge company vehicles, but the method and tax treatment need to follow current rules and the facts of the arrangement.
Separate business and private mileage
A clear mileage record makes reimbursement easier to justify and helps distinguish business travel from private charging.
Use an agreed method
Businesses may use an approved mileage rate where applicable or another evidence-based method. Check current HMRC guidance before setting policy.
Do not forget the charger itself
The cost of installing and maintaining a home charger is separate from the electricity used. Decide whether the company contributes and what conditions apply.
Put the policy in writing
Drivers should know what can be claimed, what evidence is needed and when payments are made. A short written policy avoids repeated queries.
Keep the decision practical. Use your own mileage, vehicle use, costs and business needs. Tax, finance and insurance terms vary, so check current information before committing.