CIS deductions, van and tool expenses, mileage, PPE, the VAT reverse charge and MTD explained for self-employed UK EV charge point installers.
The tax position of a self-employed EV charge point installer is shaped by one thing above all: you are a construction subcontractor. Wiring a wall-mounted charger onto someone's house, running an armoured cable to a driveway, fitting a commercial bank of chargers in a car park: in HMRC's eyes that is construction work, and the Construction Industry Scheme (CIS) governs how you get paid. If you work through another contractor, 20% comes off your labour before the money even reaches your account.
That single fact changes everything about how you should manage your tax. It is the reason most installers are owed a refund rather than facing a bill, the reason your record-keeping has to be watertight, and the reason your van and tool receipts are worth real money back in your pocket. This guide walks through how your profit is taxed, the deductions specific to charge point work, CIS, NIC, VAT and the MTD timetable.
As a sole trader you pay Income Tax on your profit, which is your total income minus allowable expenses, not on your turnover. For 2025/26 the personal allowance covers the first GBP 12,570, then you pay 20% up to GBP 50,270, 40% to GBP 125,140 and 45% above, with the personal allowance tapering away between GBP 100,000 and GBP 125,140 to create an effective 60% band. Class 4 National Insurance is 6% on profit between GBP 12,570 and GBP 50,270 and 2% above, while Class 2 NIC is settled through Self Assessment.
Scottish installers pay Scottish Income Tax through six bands (19%, 20%, 21%, 42%, 45% and a 48% top rate) and carry an S-prefixed tax code; National Insurance stays UK-wide. Welsh installers have a C-coded tax code at rates currently matching the rest of the UK. If you also have a PAYE job, or you switched from employed to self-employed mid-year, your code can end up wrong: run it through the tax code checker so you are not over- or under-taxed on the side income.
The Construction Industry Scheme is the defining feature of your tax life. Installing a fixed EV charger is "construction operations", so when you subcontract to another contractor, the law requires them to deduct tax from the labour element of your invoice before they pay you.
The deduction is 20% if you are registered with HMRC for CIS, and 30% if you are not. That deduction is not a final tax; it is an advance payment against your Income Tax and Class 4 NIC for the year. Crucially, it only ever applies to the labour element. The cost of the charge unit and materials you supply is excluded, so always split your invoices into labour and materials so the contractor deducts CIS only on the labour.
Because that 20% is skimmed off before your GBP 12,570 personal allowance and before any of your van, tool and material costs reduce your profit, the tax taken across the year is almost always more than the tax actually due. The difference comes back as a refund. Full detail on registering, gross payment status and reclaiming sits in our guide to CIS for subcontractors, and you can model the numbers with the CIS tax calculator.
An expense is allowable when it is incurred wholly and exclusively for the business. For an installer the list is dominated by the van, tools, test gear and the units and cabling you buy in, which is very different from a desk-based trade.
| Expense | What qualifies | Notes |
|---|---|---|
| Van running costs | Fuel, insurance, road tax, servicing, repairs, tyres, breakdown cover | Or claim simplified mileage instead, not both |
| Mileage (simplified) | 45p per business mile to 10,000 miles, then 25p | Easiest method; needs a mileage log, not fuel receipts |
| Charge units and cabling | EV chargers, tethered and untethered units, SWA cable | Materials you buy in to fit; excluded from CIS deductions |
| Consumables | Conduit, glands, cable, fixings, RCBOs, isolators, sealant | Fully deductible job materials |
| Tools and power tools | Drills, SDS, crimpers, strippers, cable rods, ladders | Often claimed in full via the Annual Investment Allowance |
| Test equipment | Multifunction tester, EVSE adaptor, clamp meter, calibration | Calibration is an ongoing allowable cost |
| PPE and workwear | Hi-vis, safety boots, gloves, arc-rated clothing, knee pads | Branded/protective only; everyday clothes are not allowable |
| Scheme and certification | NICEIC, NAPIT or other competent-person scheme fees | Plus certification software and notification fees |
| Insurance | Public liability, tools-in-transit, professional indemnity | Core cover for on-site work |
| Training and CPD | EV/EVSE courses, 18th Edition updates, qualification renewals | Must update existing skills, not start a new trade |
| Phone, admin, home office | Business mobile, accountancy, a fair share of home admin costs | Apportion private use out |
For most installers the van is the single largest deduction, and you have a choice. The simplified mileage method lets you claim a flat 45p per business mile for the first 10,000 miles in the year and 25p after that, covering fuel, insurance, servicing and wear in one figure; you just keep a log of business journeys. The actual cost method claims the business proportion of every running cost plus capital allowances on the van itself, which often wins if you have a thirsty van, high mileage or bought the van outright this year. Pick one method per vehicle and stick with it: a full-time installer covering serious miles between domestic and commercial jobs frequently does better on actual costs once the van's capital allowance is in play. Either way, your commute between home and a fixed base is not allowable; travel between jobs and to varied customer sites is.
The private share of your van, phone and broadband must be excluded. Everyday clothing is never allowable even if you only wear it for work; only genuine PPE and protective gear counts. Parking fines and speeding tickets are never deductible. And the cost of buying a charger purely for your own home is private, not a business expense.
Take an installer subcontracting to a regional charge point contractor, with GBP 55,000 of income for the year (GBP 40,000 labour, GBP 15,000 materials recharged to clients).
Income: GBP 55,000 turnover
CIS deducted by contractors: 20% of the GBP 40,000 labour = GBP 8,000 already paid to HMRC
Allowable expenses:
Taxable profit: GBP 55,000 minus GBP 24,000 = GBP 31,000
Income Tax: GBP 31,000 minus GBP 12,570 = GBP 18,430 at 20% = GBP 3,686
Class 4 NIC: GBP 18,430 at 6% = GBP 1,106
Total tax and NIC due: GBP 4,792. But GBP 8,000 was already deducted under CIS, so this installer is due a refund of roughly GBP 3,208. That is the classic CIS pattern, and it is exactly why filing promptly after 6 April pays. Run your own figures through the sole trader tax calculator to estimate where you will land.
For a CIS installer, the refund is real money sitting with HMRC. File early, keep every deduction statement, and claim every van mile and tool, and you turn a year of deductions back into cash.
Installers work fast and across many sites, so records slip easily. Keep a simple system: photograph every materials receipt and parking ticket at the point of purchase, log business mileage as you go (date, job, postcode, miles), and file every CIS deduction statement the month it arrives. Split each invoice into labour and materials so CIS is only deducted on labour. If you are VAT-registered, store invoices to support the reverse charge. Done continuously, the year-end becomes a tidy summary rather than a shoebox panic, which matters even more once MTD makes quarterly reporting compulsory.
You must register for VAT once your taxable turnover exceeds GBP 90,000 in any rolling 12-month period. A busy installer recharging materials can reach that faster than expected, so watch your rolling total.
Once registered, the domestic reverse charge for construction usually applies when you work as a CIS subcontractor for another VAT-registered contractor. In plain terms: you do not add VAT to that invoice, you state that the reverse charge applies, and your contractor customer accounts for the VAT instead. This stopped a long-running fraud and is now standard across construction. It does not apply when you invoice a domestic end-user (an ordinary homeowner) directly, where you charge VAT normally; note that some domestic energy-saving installation work has qualified for reduced or zero VAT rates, so confirm the current rate before invoicing a homeowner.
Making Tax Digital for Income Tax replaces the annual return with quarterly digital submissions plus a year-end finalisation. The thresholds are based on gross income, not profit:
The trap for installers is that the test is on gross turnover before CIS deductions and before expenses. A subcontractor invoicing GBP 60,000 of labour and materials is over the GBP 50,000 line and into MTD from April 2026, even though CIS already took a chunk and materials swallow much of the rest. If that is you, get digital record-keeping in place now rather than scrambling later. Our guide to MTD for sole traders explains the quarterly rhythm in practice.
Not registering for CIS. Stay unregistered and contractors deduct 30% instead of 20%, tying up more of your cash with HMRC all year for no benefit.
Letting CIS deducted on materials slip through. Always split labour and materials on your invoice so the contractor only deducts on labour, not on the units and cable you supplied.
Losing deduction statements. Without them you cannot easily prove the tax already paid, and you risk under-claiming your refund.
Mixing private and business van use. Claiming 100% of a van you also use privately, or running both mileage and actual costs, invites an enquiry. Pick one method and apportion private use.
Forgetting the reverse charge. A VAT-registered installer who keeps charging VAT to a contractor customer creates a mess for both sides; the reverse charge means you state it, not charge it.
Tax guide for Vinted sellers in the UK: trading vs selling personal items, the GBP 1,000 trading allowance, allowable expenses, the platform data HMRC now receives, VAT and MTD.
UK Airbnb tax guide: the GBP 7,500 Rent a Room scheme, the GBP 1,000 property allowance, the abolition of furnished holiday lettings, allowable expenses, VAT and MTD for landlords.
The complete UK tax guide for Uber drivers: gross fares, mileage claims, Uber service fees, VAT, and what MTD for Income Tax means for you.
UK eBay seller tax guide: selling personal items vs trading, the GBP 1,000 trading allowance, eBay fees, the platform reporting rules, VAT and MTD.
Tax guide for self-employed hairdressers: chair rent, allowable expenses, mileage, VAT and MTD for Income Tax explained in plain English.
Everything self-employed taxi and private-hire drivers need to know about tax, mileage vs actual costs, VAT, and Making Tax Digital in 2025/26.
TapTax connects to your bank, categorises expenses automatically, and submits quarterly updates to HMRC. Free plan, no card required.
