{"id":68547,"date":"2025-08-22T16:18:06","date_gmt":"2025-08-22T20:18:06","guid":{"rendered":"https:\/\/www.globalvillagespace.com\/tech\/new-hmrc-rules-boost-company-ev-drivers-mileage-claims-for-public-charging\/"},"modified":"2025-08-22T16:18:06","modified_gmt":"2025-08-22T20:18:06","slug":"new-hmrc-rules-boost-company-ev-drivers-mileage-claims-for-public-charging","status":"publish","type":"post","link":"https:\/\/www.globalvillagespace.com\/tech\/new-hmrc-rules-boost-company-ev-drivers-mileage-claims-for-public-charging\/","title":{"rendered":"New HMRC Rules Boost Company EV Drivers\u2019 Mileage Claims for Public Charging"},"content":{"rendered":"

What\u2019s Changed for Company EV Drivers Claiming Charging Costs?<\/p>\n

If you drive a company electric vehicle (EV) in the UK, you\u2019ve probably felt the pinch when it comes to claiming back charging expenses. For years, the system was simple\u2014but not always fair. HMRC\u2019s single-tier Advisory Electric Rate (AER) didn\u2019t reflect the real-world costs, especially for those relying on public chargers. That\u2019s finally changing.<\/p>\n

Why Did HMRC Introduce Separate Rates for Home and Public Charging?<\/p>\n

Let\u2019s be honest: charging at home and charging on the road are two very different beasts. Home electricity rates are generally lower and more predictable, while public charging\u2014especially on rapid networks\u2014can be pricey and varies widely. Until now, company EV drivers could only claim a flat rate, regardless of where they plugged in. The result? Many were left out of pocket, particularly those without access to home charging.<\/p>\n

After mounting criticism from drivers and industry groups, HMRC has introduced a two-tier system. Starting 1 September, you can claim 8p per mile for home charging and 12p per mile when using public chargers. It\u2019s a small change with big implications, especially for those who spend a lot of time on the road.<\/p>\n

How Are These New Rates Calculated?<\/p>\n

You might wonder how HMRC landed on these numbers. The answer is a blend of real-world data and a bit of math. Every quarter, the rates will be updated based on:<\/p>\n

– The average efficiency of electric company cars over the past three years (currently 3.6 miles per kWh)
\n– Domestic energy prices, as reported by the Office for National Statistics (currently 27p per kWh)
\n– The Zapmap Price Index for public chargers at 50kW or less (currently 51p per kWh)<\/p>\n

This approach aims to keep the rates in line with actual costs, rather than lagging behind as energy prices fluctuate. It\u2019s a step toward fairness, though not without its quirks.<\/p>\n

Does This System Reflect Real-World EV Efficiency?<\/p>\n

Here\u2019s where things get interesting. Not all EVs are created equal when it comes to efficiency. For example, the Mercedes-Benz CLA\u2014one of the most efficient EVs in the UK\u2014gets about 5.0 miles per kWh. On a public charger, that works out to roughly 10p per mile. Compare that to the Mercedes EQS SUV, which manages just 2.8 miles per kWh, costing 18p per mile on the same charger.<\/p>\n

So, while the new AER rates are more generous than before, they still don\u2019t perfectly match every scenario. If you\u2019re driving a less efficient EV or regularly using pricier chargers, you might still find yourself paying out of pocket.<\/p>\n

What About Ultra-Rapid Charging and Higher Costs?<\/p>\n

One big gap in the new system is ultra-rapid charging. These chargers\u2014often found at motorway service stations\u2014can cost a lot more than standard public chargers. According to the latest Zapmap data, the average price for ultra-rapid charging is 76p per kWh, nearly 50% higher than the rate used for the AER calculation. For an efficient EV like the CLA, that\u2019s about 15p per mile\u2014well above the 12p per mile you can claim.<\/p>\n

This means that if you rely on ultra-rapid chargers for long journeys, the new rates still won\u2019t fully cover your expenses. It\u2019s a reminder that while the system is improving, it\u2019s not perfect.<\/p>\n

Can Fleets Pay More Than the Advisory Rates?<\/p>\n

Absolutely. If your company or fleet can prove that the actual cost of charging is higher than the AER, they\u2019re allowed to reimburse you at a higher rate. But there\u2019s a catch: you\u2019ll need to provide evidence to HMRC that the higher rate reflects your real expenses. If not, any excess payment could be taxed as additional income. It\u2019s a bit of extra admin, but for those regularly using expensive charging options, it might be worth the effort.<\/p>\n

How Does This Compare to Fuel Rates for Petrol and Diesel Cars?<\/p>\n

It\u2019s worth noting that the system for petrol, diesel, and LPG vehicles is far more granular. Advisory Fuel Rates (AFRs) vary by fuel type and engine size, and even apply to hybrids. This level of detail has been missing for EVs, despite the fact that their efficiency can vary just as much as traditional cars. The new split rates are a step in the right direction, but there\u2019s still room for improvement.<\/p>\n

What Are Industry Experts Saying?<\/p>\n

The reaction from fleet professionals has been overwhelmingly positive. Paul Hollick, chair of the Association of Fleet Professionals, called the change \u201cvery good news for fleets.\u201d He highlighted the long-standing efforts by industry groups to push for a fairer system that recognizes the real costs of public charging. The British Vehicle Rental and Leasing Association (BVRLA) has also been instrumental in advocating for these changes.<\/p>\n

What Should Company EV Drivers Do Now?<\/p>\n

If you drive a company EV, it\u2019s time to check in with your fleet manager or HR department. Make sure they\u2019re aware of the new rates and understand how to claim them. Keep detailed records of your charging habits\u2014where, when, and how much you\u2019re paying\u2014especially if you use public or ultra-rapid chargers frequently. If your actual costs are higher than the advisory rates, talk to your employer about the possibility of claiming more (with proper documentation, of course).<\/p>\n

The Bottom Line: A Step Forward, But Not the Finish Line<\/p>\n

The new HMRC rates for company EV drivers are a welcome improvement, especially for those who rely on public charging. They reflect a growing recognition that one-size-fits-all doesn\u2019t work in a world where EVs and charging options are so varied. Still, there are gaps\u2014particularly for drivers using ultra-rapid chargers or less efficient vehicles.<\/p>\n

As the EV landscape continues to evolve, expect these rates and policies to keep changing. For now, though, company EV drivers can breathe a little easier knowing that their expenses are finally getting a fairer shake. And if you\u2019re ever unsure, don\u2019t hesitate to ask questions or push for what\u2019s fair\u2014after all, the system only gets better when real drivers speak up.<\/p>\n","protected":false},"excerpt":{"rendered":"

\"mercedes<\/a><\/p>\n

Additional rates, especially for public chargers, aims to avoid drivers being left out of pocket<\/p>\n

\n

His Majesty’s\u00a0Revenue and Customs (HMRC) has introduced a new rate for claiming back the cost of using public chargers for drivers who use company-owned EVs.<\/p>\n

It follows\u00a0criticisms that the single-tier system wasn\u2019t matching what they were spending.<\/p>\n

From 1 September, drivers will be able to claim 8p per mile for journeys where they\u00a0charged at home\u00a0or a higher rate of 12p for using public networks.\u00a0It\u2019s the first time the Advisory Electric Rate (AER) has differentiated between those two costs.<\/p>\n

Both rates will be adjusted every quarter, using the weighted average efficiency for electric company cars over the last three years (currently 3.6mpkWh), domestic energy prices from the Office for National Statistics (27p per kWh) and the Zapmap Price Index for public chargers at 50kW or less (51p per kWh).<\/p>\n

The AER\u2019s simplistic approach to charging expenses has been controversial since it was introduced in 2018. HMRC\u2019s single 4p-per-mile rate didn\u2019t change until December 2021, when energy prices began to rise, and only introduced quarterly adjustments in December 2022.\u00a0<\/p>\n

This compares to the much more granular system of Advisory Fuel Rates (AFRs), which are different for petrol, diesel and liquefied petroleum gas (LPG) vehicles, and each fuel has three rates based on engine size. Those rates also apply to hybrids, including plug-in hybrids.<\/p>\n

However, EVs\u2019 efficiency can be just as variable as their combustion-engined\u00a0counterparts.\u00a0<\/p>\n

For example, the new Mercedes-Benz CLA<\/a> \u2013 one of the most efficient EVs available in the UK, at 5.0mpkWh \u2013 would cost 10p per mile on a public charger, based on the same Zapmap data used by HMRC,\u00a0compared\u00a0with 18p per mile for the least efficient version of its stablemate, the EQS SUV (2.8mpkWh).<\/p>\n

The public charging AER also doesn\u2019t account for the higher price for using \u2018ultra-rapid\u2019 chargers (with an output of more than 50kW), which are now increasingly common at motorway service areas.\u00a0<\/p>\n

Zapmap\u2019s latest Price Index suggests an average cost of 76p per kWh for using ultra-rapid chargers. That\u2019s almost 50% higher than the AER and equates to 15p per mile for an efficient EV like the CLA\u00a0so wouldn\u2019t cover the driver\u2019s costs.<\/p>\n

Fleets can pay higher mileage rates, adjusted to match what they\u2019re really spending on fuel and charging, but must be able to prove it\u2019s accurate to HMRC. Otherwise\u00a0the excess can be taxed as additional income.\u00a0<\/p>\n

Paul Hollick, chair of the Association of Fleet Professionals (AFP), welcomed the announcement, saying:\u00a0\u201cThis is very good news for fleets.<\/p>\n

“We\u2019ve been working alongside the BVRLA [British Vehicle Rental and Leasing Association]\u00a0for some time to promote the idea of split public and private charging AER rates and, while it has been a long, long process, we\u2019re delighted that HMRC has listened.\u201d<\/p>\n<\/div>\n","protected":false},"author":1,"featured_media":68548,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"Default","format":"standard","meta":{"footnotes":""},"categories":[2,137],"tags":[],"class_list":["post-68547","post","type-post","status-publish","format-standard","has-post-thumbnail","category-featured","category-news"],"_links":{"self":[{"href":"https:\/\/www.globalvillagespace.com\/tech\/wp-json\/wp\/v2\/posts\/68547","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.globalvillagespace.com\/tech\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.globalvillagespace.com\/tech\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.globalvillagespace.com\/tech\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.globalvillagespace.com\/tech\/wp-json\/wp\/v2\/comments?post=68547"}],"version-history":[{"count":0,"href":"https:\/\/www.globalvillagespace.com\/tech\/wp-json\/wp\/v2\/posts\/68547\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.globalvillagespace.com\/tech\/wp-json\/wp\/v2\/media\/68548"}],"wp:attachment":[{"href":"https:\/\/www.globalvillagespace.com\/tech\/wp-json\/wp\/v2\/media?parent=68547"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.globalvillagespace.com\/tech\/wp-json\/wp\/v2\/categories?post=68547"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.globalvillagespace.com\/tech\/wp-json\/wp\/v2\/tags?post=68547"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}