Revenue and Customs Brief 1 (2022): reviewing how to claim VAT when charging electric vehicles for business purposes
Published 6 January 2022
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1. Who should read this brief
Businesses who use their own electric vehicles for business purposes or where their employees charge their electric vehicles for business purposes.
2. Background
Following the publication of Revenue and Customs Brief 7 (2021), HMRC and HM Treasury received a number of representations from businesses and business representatives about the limited options for reclaiming VAT on the cost of charging electric vehicles.
We are now reviewing the situation and this brief explains the scope of the review and sets out the next steps.
We have also updated our guidance Motoring expenses (VAT Notice 700/64) to provide further information about who can reclaim VAT on the cost of charging electric vehicles for business purposes.
3. HMRC review
HMRC is considering the situation where an employee is reimbursed by the employer for the actual cost of electricity used in charging an electric vehicle for business purposes.
This is to determine what evidence can be provided, to allow the employer to claim the related VAT, subject to the normal rules.
We are also considering other simplification measures that may reduce administrative burdens in terms of accounting for VAT on private use.
Once our review is completed, we will publish guidance to confirm our policy and provide information to businesses.
4. Guidance
Find more information about VAT input tax.
5. More information
If you have any questions about this, find out how to contact us.