What Are The Current HMRC Advisory Fuel Rates For EVs In 2026?
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From 1 September 2026, HMRC's advisory fuel rates for electric vehicles are 7p per mile for home charging and 15p per mile for public charging. Employers can use them to reimburse business mileage in a company electric car without creating a tax charge for the driver. HMRC reviews all advisory rates quarterly.
As the shift towards electric vehicles continues to gain momentum, recent updates from HMRC regarding the Advisory Fuel Rates (AFRs) bring both opportunities and challenges for businesses and employees alike. This guide sets out the current rates, how the electric rates are calculated, what changed in 2025 and what it means for employers and drivers. The Electric Car Scheme has written it for HR Directors, Fleet Managers and company car drivers who need to reimburse or claim business mileage correctly, including those with an electric car salary sacrifice scheme.
What Are Advisory Fuel Rates?
Advisory Fuel Rates (AFRs) are mileage reimbursement rates set by HMRC for company car drivers in the UK. These rates cover fuel costs when employees use a company car for business travel. HMRC updates AFRs quarterly based on average fuel prices and engine type. A salary sacrifice electric car is taxed as a company car, so the same rates apply to its business mileage.
While petrol and diesel rates have traditionally dominated this framework, the inclusion of electric vehicle rates highlights the growing importance of sustainable transport solutions. HMRC publishes every current rate on their website, and employers can reimburse business mileage at or below those rates without a tax charge for the driver.
What are the HMRC advisory fuel rates for electric vehicles from 1 September 2026?
HMRC now sets two separate advisory electric rates, one for home charging and one for public charging.
What Is the Home Charging Rate?
The advisory electric rate for home charging is 7p per mile from 1 September 2026, unchanged from the 1 June to 31 August 2026 period. It applies when a driver charges a company electric car at home and claims business mileage.
What Is the Public Charging Rate?
The advisory electric rate for public charging is 15p per mile from 1 September 2026. It applies when a driver charges at a public charge point during business travel, and it's set higher than the home rate because public electricity costs more.
How Are the Advisory Electric Rates Calculated?
HMRC multiplies an electricity price per kWh by an efficiency figure in miles per kWh, then rounds to the nearest whole penny. The home rate uses the Department for Energy Security and Net Zero domestic electricity price, uprated quarterly with Office for National Statistics data. The public rate uses the Zapmap price index for slow and fast chargers (under 50kW), uprated in the same way.
| Charging location | Electrical efficiency (miles per kWh, weighted by car sales) | Electricity cost per kWh | Rate per mile | Advisory electric rate |
|---|---|---|---|---|
| Home charger | 3.59 | 24.47 pence | 6.81 pence | 7 pence |
| Public charger | 3.59 | 54.00 pence | 15.02 pence | 15 pence |
From 1 September 2026, the advisory electric rates for fully electric cars are 7p per mile for home charging and 15p per mile for public charging. The table below shows how HMRC reached each figure.
What Changed For Advisory Fuel Rates in 2025?
Until 31 August 2025, HMRC published one flat advisory electric rate of 7p per mile, which fleet bodies criticised because it didn't reflect the higher cost of public charging. From 1 September 2025, HMRC split the rate into 8p per mile for home charging and 14p per mile for public charging. The home rate fell to 7p from 1 December 2025, and the public rate rose to 15p from 1 March 2026. The split provides clarity and consistency for businesses operating electric fleets or offering EVs as company electric cars.
| Period | Home charging (per mile) | Public charging (per mile) |
|---|---|---|
| Until 31 August 2025 | 7p (single flat rate) | 7p (single flat rate) |
| 1 September to 30 November 2025 | 8p | 14p |
| 1 December 2025 to 28 February 2026 | 7p | 14p |
| 1 March to 31 May 2026 | 7p | 15p |
| 1 June to 31 August 2026 | 7p | 15p |
| From 1 September 2026 | 7p | 15p |
What Is The AFR For Petrol and Diesel Cars?
From 1 September 2026, the Advisory Fuel Rates (AFRs) for petrol and diesel vehicles are shown below, alongside LPG and electric, with the previous quarter for comparison:
| Fuel type | Engine size or charging type | 1 June to 31 August 2026 | From 1 September 2026 |
|---|---|---|---|
| Petrol | 1400cc or less | 14p | 14p |
| Petrol | 1401cc to 2000cc | 17p | 17p |
| Petrol | Over 2000cc | 26p | 27p |
| Diesel | 1600cc or less | 15p | 15p |
| Diesel | 1601cc to 2000cc | 17p | 16p |
| Diesel | Over 2000cc | 23p | 22p |
| LPG | 1400cc or less | 11p | 11p |
| LPG | 1401cc to 2000cc | 13p | 13p |
| LPG | Over 2000cc | 21p | 20p |
| Electric | Home charging | 7p | 7p |
| Electric | Public charging | 15p | 15p |
These rates will continue to apply for businesses reimbursing employees who use petrol and diesel vehicles for business travel until HMRC's next quarterly review, scheduled for 1 December 2026. Petrol over 2000cc is the only band to rise this quarter, while diesel 1601cc to 2000cc and over 2000cc, and LPG over 2000cc, fall. The electric rates are unchanged.
Why Does AFR Matter for Businesses and Employees?
With the government pushing for a greener future, the updated AFRs serve as a financial incentive for companies to consider transitioning to electric fleets. By adopting EVs, businesses not only contribute to reducing their carbon footprint but can also benefit from lower running costs in the long run. The split rates matter for drivers as well as employers. For employees using electric company cars, the split advisory electric rates ensure that they are compensated fairly for their mileage. With the increasing number of employees opting for EVs, they must be supported in their choice to drive sustainably.
Separate home and public rates can help businesses and employees better understand their financial responsibilities as they transition to greener vehicles. Companies can use this information to budget more effectively for their fleet and ensure they are compliant with HMRC guidelines.
Industry bodies backed the split. The Association of Fleet Professionals (AFP) and the British Vehicle Renting and Leasing Association (BVRLA) had campaigned for separate home and public rates since 2021. Responding to HMRC's new public charging rate, AFP chair Paul Hollick told Fleet News: "This is very good news for fleets. We've been working alongside the BVRLA for some time to promote the idea of split public and private charging AER rates and, while it has been a long, long process, we're delighted that HMRC has listened."
Do the Advisory Electric Rates Cover Every Charging Scenario?
No, the rates don’t cover every charging scenario. The rates cover most home charging and slow or fast public charging, but rapid charging can cost considerably more per kWh. Zapmap's price index for September 2026 shows an average of 54p per kWh for slow and fast chargers (under 50kW) and 79p per kWh for rapid chargers (50kW and above), around 46% higher. HMRC's own public rate is built on the slow and fast figure (54.00p per kWh in the September 2026 calculation).
Employers can reimburse above the advisory rates if a driver can evidence higher actual costs, but any excess is subject to tax and National Insurance contributions. A driver on an electric car salary sacrifice scheme who charges mainly at home will typically stay within the advisory rates. At the current rates, employers can reimburse up to:
£70 for 1,000 business miles charged at home (7p per mile), without a tax charge for the driver
£150 for 1,000 business miles charged publicly (15p per mile), without a tax charge for the driver
How Often Does HMRC Update Its Advisory Fuel Rates For Electric Vehicles?
HMRC reviews the advisory fuel rates four times a year, so employers should check GOV.UK before each claim period. HMRC updates advisory fuel rates four times each year on:
1 March
1 June
1 September
1 December
Petrol and Diesel Calculations
The fuel efficiency figures come from manufacturer data, weighted by actual business vehicle sales over the past three years. For LPG vehicles, efficiency is calculated as 20% lower than equivalent petrol models due to the fuel's lower energy density.
Rate Rounding
Calculated rates are initially shown to one decimal place, then rounded to the nearest penny for the final advisory rates. Rates ending in exactly 0.5p are rounded down if the underlying calculation is below 0.5 (e.g., 48.7p becomes 48p) or rounded up if above 0.5 (e.g., 51.3p becomes 51p). For example, the 1 September 2026 home rate of 6.81p per mile becomes 7p, and the public rate of 15.02p becomes 15p.
HMRC takes its petrol and diesel prices from the Department for Energy Security and Net Zero (DESNZ) and its LPG price from the AA website. For electric cars, it starts with the DESNZ domestic electricity price and updates it each quarter using Office for National Statistics (ONS) electricity price data. It then combines that price with each car's electricity consumption, supplied by the Department for Transport, weighted by the average of the last three years of business sales. Public charging rates use the Zapmap price index for slow and fast chargers in place of the domestic price.
How Can Employers Prepare for Further Changes to the Advisory Rates?
While the advisory rates may not fully cover the charging costs for all EVs, they give employers a clear, HMRC-backed baseline. As the electric vehicle market continues to mature, further adjustments to the AFRs may be necessary to reflect actual running costs more accurately. Employers can prepare by reviewing their reimbursement policy at each quarterly update and by asking drivers to record whether business miles were charged at home or in public.
For those looking to make the switch to electric, consider the benefits that come with choosing an EV through salary sacrifice schemes, like The Electric Car Scheme. These green car schemes can significantly reduce the upfront costs associated with purchasing an electric car while also offering substantial savings on Income Tax and National Insurance contributions. Employees typically save 20 to 50% compared with a personal lease, and the Benefit in Kind rate for zero-emission cars is 4% in 2026/27, rising to 5% in 2027/28 and 9% in 2029/30.
Offering EV salary sacrifice as an employee benefit can help make your employees feel valued and retain top talent, all whilst hitting your environmental, social and governance goals. At The Electric Car Scheme, employers are protected through our Complete Employer Protection offering, and there's no net cost to the business to run the scheme.
Drivers who charge away from home can also use The Charge Scheme, which lets employees salary-sacrifice charging costs at home, at work and on the go from pre-tax salary. Employees can typically save 20 to 50% on charging costs, and the scheme works alongside mileage reimbursement because it changes how charging is paid for, not the price of electricity.
Frequently Asked Questions
What Are the Current HMRC Advisory Fuel Rates for Electric Cars?
From 1 September 2026, the advisory electric rates are 7p per mile for home charging and 15p per mile for public charging. HMRC publishes them on GOV.UK and reviews them quarterly. Employers can reimburse business mileage at these rates without a tax charge for the driver.
Do the Advisory Electric Rates Apply to Salary Sacrifice Cars?
Yes, they apply. A salary sacrifice electric car is taxed as a company car, so employers can reimburse business mileage at the home or public rate depending on where the driver charges. Where a car is charged in both places, HMRC allows the mileage to be split on a fair and reasonable basis.
How Often Does HMRC Update the Advisory Fuel Rates?
HMRC updates the advisory fuel rates four times a year, on 1 March, 1 June, 1 September and 1 December. Each update can change the petrol, diesel, LPG and electric rates. Employers should check the government website before each claim period.
Can an Employer Pay More Than the Advisory Electric Rate?
Yes, an employer can pay more if the driver can evidence higher actual charging costs. Any amount above the advisory rate is subject to tax and National Insurance contributions.
Will the Advisory Electric Rates Change Again?
Yes, they can change at any quarterly review. HMRC reviews the advisory rates on 1 March, 1 June, 1 September and 1 December, and the next scheduled review is 1 December 2026. Employers should check the government website before each claim period rather than relying on a fixed figure.
Do the Advisory Rates Cover Rapid Charging?
Not always. Zapmap's September 2026 index shows rapid chargers (50kW and above) averaging 79p per kWh, around 46% above the 54p average for slow and fast chargers, so drivers who rely on rapid charging may spend more than the 15p public rate reimburses.
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Last updated: 15/10/2026
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