HMRC has cut the Advisory Electric Rate (AER) mileage reimbursement rate for home charging as it also publishes Advisory Fuel Rates (AFRs) for the new quarter.

The new rate is effective from 1 December and drops the AER for home charging to 7p per mile (ppm), compared to 8p for the last quarter. The rate for public charging remains at 14ppm. The change follows Septembers introduction of split-level Advisory Electric Rates (AERs) for fleets to use, which has left electric car fleet operators in limbo, according to the Association of Fleet Professionals (AFP). 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 you 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).

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	25.72 pence	7.16 pence	7 pence
Public charger	3.59	52.00 pence	14.47 pence	14 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. These are held over from the previous figures. 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 AA 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 (12p)
1601cc to 2000cc	13 pence (13p)
Over 2000cc	18 pence (18p)

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