HMRC has updated its draft guidance for employers providing electric charging points for employee use.
The exemption for workplace charging is published in the Finance Bill 2018 to 2019 and has effect from 6 April 2018. The exemption covers: the cost of electricity, the cost to the employer of providing the charging facilities, and any connected services.
The draft guidance sets out four qualifying conditions under which the tax exemption applies, namely: the location of charging facilities; facilities must be provided to employees generally; and the employee must be the driver or passenger in the vehicle that was charged at the workplace.
The benefit will remain taxable if it is offered in conjunction with an optional remuneration arrangement.
