From 1 September 2025, the single rate for fully electric cars will be abolished and replaced with two different rates reflecting whether a car is charged at home or on a public charger.
The rate will be 8 pence per mile for home charging and 14 pence per mile for public charging. This will replace the current universal rate of 7 pence per mile.
These rates will be reviewed quarterly in line with petrol and diesel advisory fuel rates.
HMRC said:
"The ‘Domestic electricity cost per kilowatt-hour’ is the Department for Energy Security and Net Zero annually published figure, uprated with the latest estimate of electricity prices from the Office for National Statistics.
The ‘slow or fast public charge cost per kilowatt-hour’ is the Zapmap public charging price index monthly published figure for slow or fast chargers (charging speed less than 50 kilowatts), uprated with the latest estimate of electricity prices from the Office for National Statistics.
A higher amount than the advisory rates can be used as long as you can show that the fuel cost per mile is higher. Therefore, if the public charger used is higher in cost per mile than the new advisory rate introduced for public charging, a higher rate can be used as long as you can show the cost per mile is higher."
READ MORE
09/09/2025
View all >
27/10/2025
Expert Panel to advise on R&D tax relief
HMRC has appointed six independent industry specialists to a new Research and Development (R&D) Expert Advisory Panel.
Employers named for wage breaches
The government has named and shamed nearly 500 employers who failed to pay the National Minimum Wage (NMW).
Latest guidance for employers
HMRC has published the latest issue of the Employer Bulletin.
Sign up to keep in touch to receive our latest news and industry updates.
* *
Yes, I would like to receive email updates providing me with the latest finance news, advice guides and details of future events.