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.
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)
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