Employees driving company-owned electric vehicles can claim reimbursement for business mileage through the Government’s set Advisory Electricity Rate (AER).
Just like the AMAP for personal vehicles, the AER is advisory. However, the AER is a flat rate and there is a belief in the market this isn’t fit for purpose. The variation in employee home energy tariffs is too broad for one pence-per-mile rate to cover, leaving some employees charging their company-owned EVs at home out of pocket.
The AER is set quarterly and as of the 1st March 2024, the pence per mile rate remains at 9p.
