How to Document an EV Company-Car Reimbursement Policy

From 1 September 2026, HMRC publishes two Advisory Electricity Rates for fully electric company cars:

7p per mile for home charging
15p per mile for public charging
The rates are unchanged from the preceding quarter. HMRC updated the source guidance on 21 August 2026.
These rates apply only to employees using fully electric company cars. They do not cover employee-owned vehicles, vans or hybrids. They are advisory rates, not approval of an employer's policy.

Start with the rate decision

An employer can use the advisory rates or its own rate where it can demonstrate the underlying fuel cost per mile. If a company car is charged at both residential and public locations, HMRC allows a fair and reasonable apportionment.

The policy should record:

the vehicles and journeys in scope
the advisory rate or alternative rate selected
the evidence supporting an alternative rate
the method used for mixed charging
the approval owner and review date
how exceptions are recorded before payment

Keep scope explicit

The Advisory Fuel Rates guidance is for company car users. A clear policy separates:

fully electric company cars from hybrids
company cars from employee-owned vehicles
cars from vans
business mileage from private travel
Those categories can have different tax and reimbursement treatment, so they should not be folded into one rule without specialist review.

Build a reviewable control trail

A practical claim record can include the journey date, business purpose, business miles, vehicle category, rate applied, charging basis and any approved exception. The exact fields depend on the method the employer chooses.

The process should also name an owner for HMRC's quarterly rate review dates: 1 March, 1 June, 1 September and 1 December.

Current source

HMRC's Advisory Fuel Rates guidance was updated on 21 August 2026. It publishes 7p per mile for home charging and 15p per mile for public charging from 1 September 2026.

Company EV Reimbursement Pack

The Company EV Reimbursement Pack covers one UK entity, one payroll or expenses process and fully electric company cars. It provides policy wording, rate logic, a controls matrix and driver communication within three UK business days after complete inputs.

Price: £990 ex VAT. Employee-owned vehicles, vans, hybrids and tax or legal advice are outside this scope.

Review the Company EV Reimbursement Pack

Sources

HMRC — Advisory Fuel Rates