Draft guidance on reform to workplace vehicle charging tax exemptions

13 April 2018

HMRC has published a technical consultation which seeks comments on the draft guidance for workplace charging tax exemptions for electric and plug-in hybrid vehicles.

From 6 April 2018, where an individual is provided with workplace charging facilities for their own car or van, no taxable benefit arises in respect of costs relating to the provision of electricity at those facilities if the qualifying conditions are met.

The exemption applies to charging facilities for all-electric and plug-in hybrid cars and vans and covers:

  • The cost of electricity
  • The cost to the employer of providing the charging facilities
  • Any connected services.

The consultation details draft updates to the Employment Income Manual for the expected changes to the Income Tax (Earnings and Pensions) Act (ITEPA) 2003 from Finance Bill 2018-19, which have retrospective effect from 6 April 2017.

The guidance will be finalised and published in the Employment Income Manual following Royal Assent of Finance Bill 2018-19.

This consultation closes at 11:45 pm on 5 July 2018.

CIPP comment - If you would like to respond to this consultation you can do so directly, however, the Policy team are more than happy to collate any comments and respond to HMRC on your behalf. Just drop us an email with your feedback.