Key points at a glance
- Headline: HMRC splits the Advisory Electric Rate (AER) into 8p/mile for home charging and 14p/mile for public charging.
- Effective date: 1 September 2025 — check quarterly HMRC updates for any subsequent change.
- Scope: Applies to company cars. Private vehicles follow separate HMRC mileage rules.
What changed
HMRC introduced a split AER to reflect higher electricity costs on the public network. From 1 September 2025, the advisory reimbursement is 8p/mile when drivers charge at home and 14p/mile when charging on public infrastructure. Employers can reimburse above the advisory rate if they can evidence higher costs per mile (for example, specific public tariffs).
Who is affected
- Employers reimbursing business mileage for colleagues driving company EVs.
- Drivers documenting home vs public charging to ensure accurate expense claims.
- Finance, payroll and fleet teams updating mileage policies and audit templates.
Worked examples
- Home only: 500 miles × 8p = £40.00.
- Public only: 500 miles × 14p = £70.00.
- Blended: 300 miles home (300 × 8p = £24.00) + 200 miles public (200 × 14p = £28.00) →£52.00 total.
Related tools & guidance
- Estimate savings with Fleet-Savings v2 (uses UK-Preset-5).
- See also VED for EVs (2025) and our Glossary (AER, WLC/TCO, BiK, NIC, etc.).
Official sources
- HMRC — Advisory fuel rates (incl. electric): gov.uk/guidance/advisory-fuel-rates
Disclaimer: This page summarises HMRC guidance for information only and is not tax advice.