HMRC’s new advisory fuel rates (AFRs) and advisory electricity rates (AERs) come into force today, 1 September. The changes affect company car drivers claiming mileage reimbursement for petrol, diesel, LPG and electric vehicles.
Petrol AFRs remain unchanged from the last review in May. However, two diesel rates have increased. For engines up to 1,600cc, the rate rises from 11p to 12p per mile, while cars over 2,000cc increase from 17p to 18p. The 13p rate for diesel cars between 1,601 and 2,000cc is unchanged. LPG rates also remain steady at 11p (up to 1,400cc), 13p (1,401–2,000cc), and 21p (over 2,000cc).
The most significant update concerns electric vehicle reimbursement. For the first time, HMRC has introduced separate AERs for home and public charging. Employees can now claim 8p per mile when charging at home and 14p per mile when using public charge points. The public rate was initially announced at 12p but was corrected to 14p following an HMRC error.
These figures are based on electricity costs of 27.04p/kWh for home charging and 51p/kWh for public charging, with an assumed efficiency of 3.59 miles per kWh. The 51p cost reflects the average for slow and fast public chargers, not ultra-fast charging. HMRC has confirmed that higher rates can be applied where evidence shows actual costs exceed the advisory figures.
Hybrid vehicles continue to be treated under petrol or diesel AFRs.
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