HMRC has split mileage reimbursement rates between public and home charging for electric company cars as it also publishes latest Advisory Fuel Rates for the coming quarter.

From 1 September 2025, there will be two different Advisory Electric Rates (AERs) for fleets to use, covering the increased costs for drivers charging at public stations.

For home charging, the rate stands at 8 pence per mile. This rises to 12 pence per mile for public charging. For the current quarter, the sole AER rate is 7ppm.

HMRC has split the rates following years of concerns from the fleet sector that the AER doesn’t cover drivers’ charging costs.

Fleets can use a higher amount than the advisory rates but need to show that the fuel cost per mile is higher. If the cost per mile using public chargers works out higher than the new advisory rate, a higher rate can be used as long as fleets can show the cost per mile is higher.

The figures are based on an EV efficiency rate of 3.59mpkWh, weighted by car sales, along with electricity cost per kWh figures for domestic energy and public charging at slow or fast chargers (less than 50kW).

Thomas McLennan, BVRLA director of policy and public affairs, said: “It is encouraging to see that HMRC continues to listen to the sector. The BVRLA and AFP have collaborated on this topic since 2021. Since then we’ve seen a regular review of AER introduced, plus today’s news that public and private rates will be split. Both were core changes we have pushed for.

“Policy change is rarely rapid, but this is a great reminder that change does come when we work together. Focus now turns to a ‘rapid charging’ as the current 12p is not reflective of what many drivers will be experiencing.”

Charging location	Electrical efficiency miles per kilowatt-hour (weighted by car sales)	Electricity cost per kilowatt-hour (pence)	Rate per mile (pence)	Advisory electric rate
Home charger	3.59	27.04 pence	7.52 pence	8 pence
Public charger	3.59	51.00 pence	12.37 pence	12 pence

 

The home charging rate is based on the ‘Domestic electricity cost per kilowatt-hour’ taken from the Department for Energy Security and Net Zero’s annually published figure, uprated with the latest estimate of electricity prices from the Office for National Statistics.

The public charging rate uses a ‘slow or fast public charge cost per kilowatt-hour’ figure taken from the Zapmap public charging price index monthly published figure for slow or fast chargers (charging speed less than 50kW), uprated with the latest estimate of electricity prices from the Office for National Statistics.HMRC has also published latest Advisory Fuel Rates (AFRs) for the new quarter. Petrol rates have been carried over from the third quarter but there are some changes for diesel company cars. The rate for smaller-engined diesels (1600cc or less) rises from 11 to 12ppm while the rate for larger engines (over 2000cc) also rises a penny, going from 17 to 18ppm.

The rise comes after diesel pump prices jumped nearly 2p a litre in July, according to RAC data.

HMRC’s AFR figures are based on latest petrol and diesel prices taken from the Department for Energy Security and Net Zero (DESNZ) and the LPG (UK average) is from the Automobile Association website.

The previous rates can be used for up to one month from the date the new rates apply.

The new AFR tables are as follows (old rates in brackets):

Engine size	Petrol – amount per mile	LPG – amount per mile
1400cc or less	12 pence (12p)	11 pence (11p)
1401cc to 2000cc	14 pence (14p)	13 pence (13p)
Over 2000cc	22 pence (22p)	21 pence (21p)

Engine size	Diesel – amount per mile
1600cc or less	12 pence (11p)
1601cc to 2000cc	13 pence (13p)
Over 2000cc	18 pence (17p)

The full list of rates can be viewed here, along with the tables for calculating them.