We know that reimbursement is a key issue for many companies, so our team can provide you with guidance about how to handle it.
The official HMRC Advisory Electricity Rate (AER) rate is 4p per mile. There is no car fuel benefit tax implication for using these figures, since HMRC does not consider electricity a fuel. These rates apply to fully electric cars – not Plug-in Hybrid Electric Vehicles (PHEVs).
If you drive a PHEV or hybrid company car, then the business mileage rates reflect the appropriate petrol or diesel AFRs depending on whether you have a petrol or a diesel hybrid.
This means a driver is unable to reclaim back the cost of electricity from any home charging units as it is considered to be covered under AERs. For further info go to:
Currently, the cost of charging a vehicle using a home charge point cannot be split by your electricity provider, so in practice it’s very complex to track and report. As a result, employers prefer to use the official HMRC AER rates.
We would recommend a driver moves to an off-peak overnight tariff to minimise the cost of charging sessions. Some great analysis found through the Energy Savings Trust to illustrate this.
To help drivers manage mileage capture and the split between private/personal, there are a number of Government approved applications on the market, which can help drivers capture their mileage in a very simple way.