Electric vehicles have become increasingly popular with company directors and business owners. With attractive company car tax rates and lower running costs, many businesses are making the switch from petrol and diesel vehicles to electric alternatives.
But once you’ve ordered the car, another question often follows:
“Can my limited company pay for an electric vehicle charger at my home?”
The answer is yes, in many cases, but the tax treatment depends on who owns the charger, who is paying for the installation, whether the vehicle is a company car and how the charger is used.
Many directors assume the charger is treated in exactly the same way as the car. In reality, there are several factors that need to be considered before the company pays for the equipment.
Understanding the rules before installation can help ensure the costs are dealt with correctly.
The short answer
Yes, your limited company can often pay for an electric vehicle charger installed at your home.
However, the tax treatment depends on several factors, including:
- Whether the vehicle is owned or leased by the company.
- Whether the charger is provided by the company.
- Who owns the property where it is installed.
- Whether the charger is available for business purposes.
- How the installation is structured.
Every situation should be considered individually.
Why are home chargers becoming so popular?
Most electric vehicle owners charge at home because it is:
- More convenient.
- Usually cheaper than public charging.
- Easier to charge overnight.
- Better for long-term battery management.
- More practical for everyday commuting.
For company directors who drive electric company cars, installing a home charger can make business travel much simpler.
Can the company pay for the charger?
In many cases, yes.
The company may choose to pay for:
- The charging unit.
- Installation costs.
- Electrical testing where required.
- Professional installation.
- Associated business equipment.
However, the way these costs are treated for tax purposes depends on the overall arrangement.
Does it matter who owns the house?
Yes.
A charger installed at your own home raises different considerations from one installed at business premises.
The company should consider:
- Who owns the property.
- Whether the property is rented.
- Whether landlord permission is required.
- What happens if you move house.
- Whether the charger remains with the property.
These practical issues are often overlooked.
What if I have a company electric car?
Many directors install chargers specifically because they have a company electric vehicle.
Where the charger is provided in connection with a company vehicle, the overall tax position may differ from someone installing a charger for their own privately owned electric car.
This is why it’s important to look at the complete arrangement rather than considering the charger in isolation.
Can I use the charger for my own vehicle?
Some households own multiple electric vehicles.
If a company-funded charger is also used for privately owned vehicles, the wider tax implications should be reviewed before installation.
Keeping clear records of the intended business purpose is good practice.
Can the company pay for the electricity?
Charging costs are separate from the charger itself.
Electricity used to charge a company vehicle may be treated differently depending on:
- Where the vehicle is charged.
- Who pays the electricity bill.
- Whether mileage is reimbursed.
- Whether charging takes place at home or at work.
The charger and the electricity costs should not automatically be treated in the same way.
Grants and incentives
From time to time, government grants and incentives may be available to support electric vehicle charging infrastructure.
Eligibility, funding levels and application rules can change, so it’s worth checking the latest guidance before arranging an installation.
What records should I keep?
If your company pays for a home charger, keep:
- Purchase invoices.
- Installation invoices.
- Electrical certificates.
- Payment records.
- Manufacturer documentation.
- Warranty information.
- Any grant documentation.
- Company approvals.
Good record keeping makes year-end accounting much easier.
Common mistakes
Business owners often:
- Assume the charger automatically receives the same tax treatment as the car.
- Ignore who owns the property.
- Forget installation costs.
- Lose invoices.
- Mix business and personal charging arrangements.
- Fail to keep records of the installation.
These mistakes are generally easy to avoid with proper planning.
Frequently Asked Questions
Can my limited company buy a home EV charger?
Yes, in many situations it can.
Does the company have to own the house?
Not necessarily, but ownership of the property may affect the overall arrangement.
Can I use the charger for personal charging?
Potentially, but the tax implications should be considered first.
Can the company pay the installation costs?
Yes, depending on how the installation is arranged.
Should I keep all invoices?
Absolutely. Installation certificates and purchase invoices should always be retained.
Final thoughts
Installing a home electric vehicle charger can make owning a company electric car far more convenient, but it’s important to understand how the charger, installation costs and ongoing charging expenses fit into the wider tax picture.
Before asking your company to fund the installation, it’s worth reviewing the ownership of the vehicle, the property and the intended use of the charger to ensure the arrangement is structured correctly.
At Merranti Accounting, we help company directors understand the tax implications of electric vehicles, charging equipment and employee benefits, ensuring business purchases are recorded correctly and tax-efficiently.
Written by Steve Watts
