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Claiming the cost of charging electric vehicles

10 January 2022
Issue: 4823 / Categories: News

HMRC is reviewing how VAT is claimed on the cost of charging electric vehicles.

It is considering the evidence required to allow an employer to claim the related VAT when they reimburse an employee for the actual cost of electricity used in charging an electric vehicle for business purposes as well as other simplification measures to reduce the administrative burdens of accounting for VAT on private use.

HMRC has also added a new section 8 to VAT Notice 700/64 Motoring expenses covering recovery of input tax incurred by businesses in relation to the charging of electric cars. This confirms that businesses can recover VAT incurred when charging electric vehicles on the business use of those vehicles when those vehicles are charged at work or at public charging premises. Sole traders and partners can also recover VAT for charging electric vehicles for...

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