HMRC has split fuel advisory rates for electric cars depending on where drivers
charge their company cars due to the price discrepancy between home and public
chargers.
From 1 September 2025, the single rate for fully electric cars will be abolished
and replaced with two different rates reflecting whether a car is charged at
home or on a public charger.
The rate will be 8 pence per mile for home charging and 14 pence per mile for
public charging. This will replace the current universal rate of 7 pence per
mile.
These rates will be reviewed quarterly in line with petrol and diesel advisory
fuel rates.
HMRC said:
'The 'Domestic electricity cost per kilowatt-hour' is the Department for
Energy Security and Net Zero annually published figure, uprated with the
latest estimate of electricity prices from the Office for National
Statistics.
'The 'slow or fast public charge cost per kilowatt-hour' is the Zapmap public
charging price index monthly published figure for slow or fast chargers
(charging speed less than 50 kilowatts), uprated with the latest estimate of
electricity prices from the Office for National Statistics.
'A higher amount than the advisory rates can be used as long as you can show
that the fuel cost per mile is higher. Therefore, if the public charger used
is higher in cost per mile than the new advisory rate introduced for public
charging, a higher rate can be used as long as you can show the cost per
mile is higher.'
Internet link: GOV.UK