Where an employer provides facilities for charging their employees’ all-electric or plug-in hybrid vehicles at the workplace, this is currently treated as a taxable benefit in kind subject to income tax for employees and employer Class 1A National Insurance contributions.

The government announced in Autumn Budget 2017 that it would introduce an exemption to remove any income tax or National Insurance contributions liability for charging electric vehicles at work with effect from 6 April 2018.

Draft guidance for employers was published on 12 April 2018 – this does not fully reflect the legislation being published and will be updated in the summer. This will support air quality initiatives by incentivising the purchase of all-electric and plug-in hybrid vehicles by individuals.

There is already an exemption for the provision of charging facilities which applies to taxable cars and vans.