HMRC is increasing the Advisory Electricity Rate (AER) by one pence per mile. The quarterly-revised rate, used by businesses for reimbursing drivers of electric company cars, will rise from 8p to 9p on 1 March.
The increase — announced alongside a drop in Advisory Fuel Rates (AFRs) for petrol, diesel and LPG cars — follows concerns that EV drivers, charging company vehicles at home, were being left out of pocket because of rising energy costs.
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HMRC had already increased the rate from 5p per mile to 8p per mile from 1 December 2022 in line with AFRs. While the AER has gone up, AFRs for petrol, diesel and LPG-engined vehicles have fallen, reflecting a decrease in pump prices.
The new rates per mile are:
PETROL
1,400cc or less: 13p (down by 1p)
1,401cc to 2,000cc: 15p (down by 2p)
Over 2,000cc: 23p (down by 3p)
DIESEL
1,600cc or less: 13p (down by 1p)
1,601cc to 2,000cc: 15p (down by 2p)
Over 2,000cc: 20p (down by 2p)
LPG
1,400cc or less: 10p (unchanged)
1,401cc to 2,000cc: 11p (down by 1p)
Over 2,000cc: 17p (down by 1p)