Why your fleet’s TCO model is outdated

From September 2025, UK fleet economics changed. HMRC split Advisory Electricity Rates, Vehicle Excise Duty now applies to EVs, and the Electric Car Grant returned in new forms. At the same time, the Local EV Infrastructure (LEVI) programme is reshaping access to public charging.
If your Whole-Life Cost (WLC) model hasn’t been refreshed this quarter, you’re not alone — but it means your decisions may rest on assumptions that are already wrong.
That’s where EVDecisionCompass (EVDC) comes in.
The gaps in today’s fleet models
- Public charging costs: 20% VAT vs 5% at home, plus surcharges and idle fees. Few models capture the full reality.
- AER split: 8p/mile for home charging, 14p for public. Without evidence, you risk over- or under-reimbursing drivers.
- Incentives in flux: the Electric Car Grant is back, but eligibility changes month by month.
- VED supplement: EVs registered after 1 April 2025 and priced above £40k carry a recurring tax burden.
- Infrastructure roll-out: LEVI funding brings on-street charging, but unevenly across regions.
These are not small details — they can swing the economics of a fleet by thousands of pounds per vehicle.
Why an audit beats spreadsheets
EVDC’s Fleet Audit Express is designed to bridge exactly these gaps:
- Real-world usage data: we pull invoices and logs to reveal your true home/public split.
- Tariff & VAT mapping: every region, every rate, with idle/session charges included.
- Incentive eligibility check: are you missing out on a Band-1 ECG vehicle?
- Tax line accuracy: VED by reg date, list price, and supplement exposure.
- Fairness & compliance: reimbursement policies aligned to HMRC guidance and defensible to employees.
Delivered in 10 working days, priced at £1,000 (satisfaction guaranteed).
Example: LEVI in practice
In North East Lincolnshire, new LEVI funding is delivering on-street chargers targeted at households without driveways. That changes charging behaviour overnight.
Without an audit, your model may assume 70% home charging — but in reality, drivers are queueing at public sites with higher tariffs, adding both cost and frustration.
EVDC quantifies that gap, recalibrates your reimbursement model, and protects both budget and morale.
Why this matters now
This isn’t just about tidying up spreadsheets:
- Procurement: avoid overpaying for EVs not eligible for grants.
- People: stop the fairness gap between home- and public-charging drivers.
- Profitability: remove hidden VAT and VED leakage.
In a competitive market, fleets that manage cost precisely have the edge.
Next step
If your TCO hasn’t been audited since September, it’s outdated.
Book a Fleet Audit Express today with EVDecisionCompass.
👉 Book your audit now – £1,000, delivered in 10 days
Sources
- Energy Saving Trust — LEVI fund
- HMRC — Advisory Electricity Rates & VAT guidance
- The Guardian — VAT disparity on public charging
- House of Commons Library — VED for EVs
- GOV.UK — Electric Car Grant
Related reading
More fleet electrification analysis curated for this topic.
- Ofgem Price Cap Q4 2025: Impact on UK EV Fleets
02 Oct 2025
Ofgem’s October–December 2025 price cap is up 2%. For UK fleets, this small rise has real consequences when comparing per-kWh costs to HMRC’s per-mile rate.
Read more - Residual values & leasing risk
30 Sept 2025
Residual values, leasing risk and why many UK fleet TCO models are already out of date. Post-April policy changes hardwire new costs directly into lease pricing.
Read more - UK EV fleet grants & incentives 2025 — what you need to know
23 Sept 2025
UK EV Fleet Grants & Incentives Electrifying your fleet in 2025 can shave thousands of pounds off up front costs — if you capture every grant and tax break.
Read more - Fleet Audit Express
18 Sept 2025
Fleet Audit Express From 1 September 2025 , HMRC split the EV mileage rate: 8p/mile for home charging and 14p/mile for public charging.
Read more - Fair or Unfair?
16 Sept 2025
ir or Unfair? What we know so far? From 1 September 2025 , HMRC splits the Advisory Electricity Rate (AER) for fully electric company cars : 8p/mile for home ch
Read more