HMRC has updated its fuel reimbursement advisory rates, now differentiating between home and public electric vehicle (EV) charging and updating diesel per-mile costs.
The new rates apply to businesses reimbursing employees for business travel in company cars, and employees repaying the cost of fuel used for private travel.
From September, HMRC’s advisory rate for EV charging will be 8p per mile for home charging and 14p per mile for public charging.
This is based on the Office for National Statistics’ (ONS) latest estimate of electricity prices and Zapmap’s public charging price index for chargers under 50kW.
Fleets can use higher than advised rates, but must prove that per-mile costs are higher.
Previously, fleets were advised by HMRC to reimburse their EV drivers 7p per mile, regardless of charging location.
HMRC classifies hybrid cars as petrol or diesel.
Diesel cars with engines under 1600cc have a per-mile rate of 12p, diesels under 2000cc are advised at 13p and diesels over 2000cc are advised at 18p per mile.
Petrol advisory rates have remained the same, but diesel rates have increased slightly to reflect the recent increase in fuel prices.
Petrol cars with engines under 1400cc have an advisory rate of 12p per mile. Petrol engines under 2000cc have a rate of 14p per mile and engines under 2000cc have an advisory rate of 22p per mile.
