BVRLA and AFP join forces to obtain AER increase

HM Revenue & Customs has increased the Advisory Electricity Rates (AERs) for electric vehicles (EVs) by 25% to five pence per mile, following intensive conversations with HMRC by the BVRLA and the Association of Fleet Professionals (AFP). 

Gerry Keaney, BVRLA Chief Executive, said: “The EV market is maturing and is no longer a niche. We need a mileage recompense rate that can adapt to energy prices and charging trends, so we are pleased to see HMRC respond so swiftly to the lobbying from AFP and BVRLA.  

“The AER for electric vehicles had not changed since 2018, this uplift is a positive move and shows that the Government is serious about providing a supportive environment for the push to zero emission motoring.”  

The previous AER specified was just 4ppm which, added Paul Hollick, AFP chair, failed to cover reimbursement of fuel costs when most individuals are now paying closer to an estimated 18 pence per kWh, even when charging at home. 

See the Advisory fuel rates guidance on the GOV.UK website

Read the press release, issued 24 November: AFP and BVRLA Claim Win for Fleets as AER Rates Increased by 25%