Drivers charging plug-in vehicles at work will no longer be subject to a Benefit-in-Kind charge as of next April, under measures announced during the 2017 Budget.

Electricity for drivers charging at work will no longer class as a Benefit-in-Kind.

The current system classes electricity used to charge privately-owned vehicles at the workplace as a Benefit-in-Kind, subject to tax based on the cost to the employer. This does not apply to company-owned vehicles.

With the aim of encouraging greener vehicles, Chancellor Philip Hammond said the Government would “clarify the law” to ensure those topping up at work don’t face a Benefit-in-Kind charge from next year.

There was no indication of how this relates to home charging. Reimbursed or company-provided electricity for charging electric vehicles at home is classed as a Benefit-in-Kind under the current system. For mixed or business use, the employee is entitled to a deduction for the cost of business miles covered.

“The tax system can play an important role in protecting our environment,” said the Chancellor. “We owe it to our children that the air they breathe is clean.”