HMRC has introduced separate Advisory Electricity Rates (AER) for electric vehicle charging, depending on whether the vehicle is charged at home or via public infrastructure.
Drivers using the public charging network will now receive a higher reimbursement rate.
From 1st September 2025, new Advisory Fuel Rates (AFRs) come into effect:
· 8 pence per mile (ppm) for home charging
· 14ppm for public charging
Initially, HMRC set the public charging rate at 12ppm but later corrected it to 14ppm after identifying a calculation error.
The AER had previously been fixed at 7ppm since September last year.
The new home charging rate of 8ppm is calculated using:
· an assumed electricity price of 27.04p per kWh
· an average vehicle efficiency of 3.59 miles per kWh, weighted by car sales.
For public charging, the same efficiency figure is applied, but with an assumed electricity cost of 51p per kWh. This figure is based on Zapmap’s public charging price index for slow and fast chargers (under 50kW), adjusted with the latest electricity price data from the Office for National Statistics (ONS).
Alongside these updates, HMRC has confirmed that rates for LPG vehicles will remain unchanged:
· 11ppm for engines up to 1,400cc
· 13ppm for engines between 1,401cc and 2,000cc
· 21ppm for engines over 2,000cc
For hybrid cars, the existing approach remains in place - they will continue to be treated as either petrol or diesel vehicles for AFR purposes.
Meanwhile, Arnold Clark is delighted to announce its UK-wide ultra-rapid EV charging network is now open to the public.
Last year, as part of a £30 million investment, Arnold Clark, the UK's largest independently owned, family-run car retailer, launched its own bookable ultra-rapid charging network, Arnold Clark Charge.
There are currently more than 50 Arnold Clark Charge hubs live across the UK, with work well under way to have more locations added by the end of the year. There will be up to eight rapid chargers, with the ability to charge up to 150kW, installed at Arnold Clark branches.