Reimburse
HMRC mileage rates for electric vehicles
What the rules actually say about reimbursing EV business mileage, and how to reimburse the real cost without creating a tax problem.
Advisory Electricity Rate
HMRC publishes a single pence per mile rate for fully electric company cars, reviewed quarterly. It is a safe harbour, not an obligation: you can reimburse the actual cost of electricity instead, provided you can evidence it.
Approved Mileage Allowance Payments
Where the employee owns the car, AMAP applies in the usual way at 45p for the first 10,000 business miles and 25p after that, regardless of fuel type.
Evidence is the deciding factor
Reimbursing actual cost is only tax free where the cost is supported. That means charging session records tied to business mileage, kept in a form you can produce on request.
Home charging counts
Electricity taken at an employee's home to power a company car is not a taxable benefit, so home sessions can be included in a properly evidenced reimbursement.
Rates and thresholds change. Always check the current figures published by HMRC before setting policy, and take your own tax advice on your specific arrangements.
Reimburse the real cost, with the evidence attached
Reimburse links every charging session to mileage, so payments are accurate and each one can be traced back to source data.