HMRC has updated the advisory fuel rates for electric company cars and introduced separate rates for home and public charging. The guidance also explains how to split mileage when a journey involves charging at both locations.
From 1 September 2025, fully electric cars will have two advisory electric rates, replacing the previous single rate of 7 pence per mile:
- 8 pence per mile for home charging
- 14 pence per mile for public charging
Where a company car is charged at public and residential locations, employers may apportion business mileage in line with the share of energy taken at each place. HMRC expects the apportionment to be fair and reasonable. For example, if 60% of charging is at home and 40% in public, apply the home rate to 60% of business miles and the public rate to 40%.
Businesses can use rates higher than the advisory figures if they show that the actual cost per mile is greater. This is particularly relevant when public charging costs exceed the new public charging rate.
HMRC sets the non-residential rate using Zapmap’s monthly public charging price index for slow or fast chargers, which are defined as charging speeds under 50 kilowatts, and uprates it with the latest Office for National Statistics electricity price estimate. The rate does not reflect the cost of higher-speed public chargers being rolled out more widely.
Advisory fuel rates apply only when employers reimburse employees for business travel in company cars, or when employees repay the cost of fuel used for private travel. No dispensation is needed if these rates are used. Hybrid cars follow the petrol or diesel rates.
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