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More and more employers are having a charging station installed at the employee's home for the company car. This is convenient, but there are legal and tax considerations involved: who pays for the charging station and the electricity, how does the taxable benefit work, and what happens if the employment ends?
Why a home charging station?
With a charging station at home, the employee always has a charged company car, without being dependent on public charging points. That is convenient and efficient. However, the employer offering this must arrange a few things properly to avoid surprises.
Reimburse the electricity costs
The employee charges at home using their own electricity; you wish to reimburse these costs, as it is effectively 'refueling' the company car. Under certain conditions, this reimbursement can be tax-free, provided that consumption is reliably determined (for example, via a smart charging station that registers business charging). (Tax rules and amounts are changing; coordinate this with your payroll department.)
Ownership of the charging station and tax liability
Determine who owns the charging station and who pays for the installation. If you make the charging station available as part of the company car, this may affect the taxable benefit and the tax treatment. Document how this is processed and what the consequences are for the employee.
What happens at the end of employment?
The charging station is permanently located at the employee's home. Make agreements in advance regarding what happens if he leaves the company: will the charging station remain, will the employee purchase it, or will it be removed? Record this, along with the other agreements, in a policy or in the terms of employment to prevent any disputes later on.
Frequently Asked Questions
Am I allowed to reimburse the home electricity costs for the company car?
Tax-exempt under certain conditions, provided that business use is reliably established. Coordinate the tax application with your payroll administration.
Does a home charging station affect the taxable benefit?
That is possible, depending on how you make the charging station available. Document the processing and the consequences.
What happens to the charging station upon termination of employment?
You must agree on this in advance: leave it hanging, buy it, or remove it. Record this in an arrangement.
Arrange your charging station scheme properly?
Our legal experts record the agreements in your employee handbook or terms of employment. View our employment lawteam or schedule a free consultation.
