If an employee is running a pure electric company car but paying for the re-charging themselves they can charge per business mile driven.
HMRC have created an Advisory Electric Rate (AER) to go alongside the Advisory Fuel Rates (AFR), which are both reviewed quarterly. AER is lower than AFR to reflect the savings in running costs. Both the AER and AFR will be reviewed quarterly at the same time from December 2022.
From 1 December 2022, the advisory electric rate for fully electric cars rose from 5p to 8p per mile. Hybrid cars are treated as either petrol or diesel for this purpose. You can use the previous rates for up to 1 month from the date the new rates apply.
The AER is calculated using electric price data from the Department for Business, Energy & Industrial Strategy, the Office of National Statistics, and, electrical consumption rates from the Department for Transport.
Petrol, Diesel and LPG rates from 1 December 2022 are as follows;
|
Engine size |
Petrol - amount per mile |
LPG - amount per mile |
|
1400cc or less |
14p |
10p |
|
1401cc to 2000cc |
17p |
12p |
|
Over 2000cc |
26p |
18p |
|
Engine size |
Diesel - amount per mile |
|
1600cc or less |
14p |
|
1601cc to 2000cc |
17p |
|
Over 2000cc |
22p |









