Why this matters
Since 1 September 2025, HMRC has split the Advisory Electricity Rate (AER) for electric vehicles into:
- 8 p/mile — home charging
- 14 p/mile — public charging
Most companies still apply a single rate, creating non-compliance and unnecessary cost. Fleet News, the AFP, and HMRC’s October 2025 Employer Bulletin have all highlighted this issue.
Example: if 70% of charging occurs at home, the fair weighted rate is 9.8 p/mile. Across 800,000 miles a year, that represents roughly £33,600 in savings while staying compliant.