What are the company car mileage rates for electric vehicles?

Electric vehicles (EVs) are becoming increasingly common on UK roads.

Companies have been particularly keen on adopting the new technology due reduced running costs over time.

Businesses and employees are using EVs for work-related travel and as a result, mileage rates apply.

However, many drivers are unsure whether they’re able to claim mileage on a company electric car and, if so, what the current EV company car mileage rates are.

Can you still claim 45p per mile for an electric car?

Privately owned cars used for business purposes are able to claim EV company car mileage rates.

EVs, along with their petrol, diesel, and hybrid counterparts, are all covered by this scheme.

The His Majesty’s Revenue & Customs (HMRC) Approved Mileage Allowance Payment (AMAP) rate is currently 45p per mile for the first 10,000 miles travelled, and 25p per mile thereafter.

What is the mileage rate for EV company cars?

AMAP rates only apply to personally owned vehicles.

If you drive a company-owned and provided EV, you cannot claim AMAP rates.

Instead, businesses will need to use the advisory electric rate (AER) set by HMRC for reimbursing employees for business travel in a company-owned EV.

As of March 2025, the AER is set at 7p per mile.

This rate is substantially lower than the AMAP rate for petrol and diesel cars, and is calculated on the reduced running costs of EVs compared to internal combustion engine (ICE) vehicles.

Employers can claim this rate to reimburse their employees tax-free for business mileage.

If a business reimburses at a higher rate, any excess amount may be subject to tax and National Insurance.

How do EV mileage rates compare to ICE vehicle rates?

For comparison, here are the current HMRC Advisory Fuel Rates (AFRs) for petrol, diesel, and LPG company cars:

    • Petrol: from 12p to 23p per mile depending on engine size
    • Diesel: from 12p to 17p per mile depending on engine size
    • LPG: from 11p to 21p per mile depending on engine size
    • Fully electric: 7p per mile

As you can see, the EV company car mileage rates are significantly lower than those for ICE vehicles, reflecting the fact that charging an EV is typically much cheaper than refueling a petrol or diesel car.

As more company vehicles become fully electric, the cost to the taxpayer of providing company mileage rates is likely to reduce significantly.

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