Company Fleet Electric Vehicles HMRC / Tax

HMRC Splits Electric Mileage Rate in latest AFR update

Published 26th August 2025

HMRC has announced the latest Advisory Fuel Rates (AFRs), with a key change for electric vehicles: the Advisory Electricity Rate (AER) has now been split into two separate rates, depending on how the vehicle is charged.

From 1 September 2025, drivers using home charging can claim 8 pence per mile, while those using public charging can claim 14 pence per mile. The change replaces the previous flat rate of 8p per mile for all EV charging, and reflects the cost difference between charging at home and at more expensive public networks.

This is the first time HMRC has applied a dual-rate approach for EVs and follows growing calls from industry to acknowledge the widening gap in charging costs.

Rates for petrol, diesel and hybrid vehicles have also been updated in line with fuel price fluctuations. As ever, these figures are advisory, and employers can choose to pay different rates with supporting evidence.

These rates are only for company car drivers and can be used to claim business mileage or to repay private mileage where all fuel is paid for in order to avoid punitive Fuel Tax.

For hybrid cars, drivers should use the appropriate petrol or diesel rate.

You can view the previous AFR update from June here: https://www.gateway2lease.com/blog/company-fleets/advisory-fuel-rates-june-2025