HMRC Introduces Split Mileage Rate for EV Charging

HMRC will introduce separate advisory electricity rates (AERs) for home and public charging from September 1, 2025, marking the first time the reimbursement has been split by charging source.

Company car drivers will now be able to claim 8 pence per mile (ppm) for home charging and 12ppm for public charging, up from the long-standing flat rate of 7ppm.

The change follows criticism that the previous AER failed to reflect the higher costs of public charging. Calculations are based on a weighted efficiency of 3.59 miles per kWh, with electricity priced at 27.04p/kWh for home charging and 51p/kWh for public networks.

Industry groups, including the BVRLA and AFP, have long campaigned for a public charging rate. While welcoming the move, BVRLA’s policy director Thomas McLennan noted that rapid charging costs remain higher than the new 12ppm allowance.

Alongside the AER update, HMRC has also published revised advisory fuel rates (AFRs) for company cars. From September, diesel reimbursement increases to 12ppm (up to 1,600cc) and 18ppm (over 2,000cc), while petrol and LPG rates remain unchanged.