Legislation is to be introduced to exempt from income tax and National Insurance Contributions, any liability arising from the provision of charging facilities (including electricity) to employees recharging all-electric or plug-in hybrid vehicles at or near the workplace, where facilities are made available generally to the employer’s employees.
It does not cover reimbursements for charging elsewhere paid for by the employee. This proposal will not apply to taxable cars and vans (chargeable under the car or van benefit charge respectively). These are taxable as benefits in kind, and the provision of charging facilities and electricity are treated as connected costs already subject to a separate exemption.
Employers should note that, if enacted, this measure will apply retrospectively from 6 April 2018. If you have any concerns about this please call us on 01803 500500 and speak to one of our friendly team.