HMRC publishes advisory electricity rates for electric cars so an employer can reimburse business mileage at a simple pence-per-mile figure. The rate is reviewed and it changes. It is a mileage method. It is not a refund of your standing charge, and it is not automatically the same as your night-time unit rate multiplied by the kWh the car drank. Use the rate that applied to the period you are claiming, from HMRC, not from a blog that copied last year's number.
Write hMRC advisory electricity rates and home charging into the quote
Ask payroll which method they accept and which months the current rate covers.
HMRC advisory electricity rates and home charging
If your policy pays actual home electricity instead, do not also claim the advisory rate for the same miles. Pick the method in the policy.
- It is pence per mile, not a charger voucher
- Rates change, so use the current table
- Do not double count with a kWh refund
- Logs are the evidence
Check hMRC advisory electricity rates and home charging before you accept a price
Keep a mileage log if you use the advisory rate. Keep charger session records if you use measured kWh. A wallbox photo proves neither.
The price effect of hMRC advisory electricity rates and home charging
Under-claiming is common when people use a 5 pence guess. Over-claiming is what happens when someone uses a public rapid price for home energy. Neither is required if you follow the published method.
A miss that shows up later: hMRC advisory electricity rates and home charging
The mistake is treating the advisory rate as a grant towards the charger installation. It is a running-cost tool for business miles.
Frequently asked questions
Does it cover commuting?
Ordinary commuting rules are a tax question of their own. Ask payroll before you assume the advisory rate pays the drive to your usual workplace.
What if electricity gets dearer mid-year?
The advisory rate is HMRC's simplified figure, not your tariff. It is updated on their timetable.
Can the self-employed use it?
Different rules can apply. Ask your accountant rather than copying an employer's expense form.
Does a plug-in hybrid use the same rate?
Hybrid rates are not the same as battery-electric rates. Use the figure for the car you drive.
Core buying guides
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Related guides
Sources and further reading
How this guide was prepared
This guide was written by the Local EV Installers Editorial Team. We compare official guidance, legislation and established consumer information, separate general information from project-specific advice, and show publication dates and sources. We do not accept installer accreditation claims at face value.