The Advisory Electric Rate (AER) for business travel reimbursement has been split to acknowledge the cost gap between the public and private electric vehicle charging networks.
From 01 September, the AERs for fully electric cars will be:
- 8p per mile for home charging
- 14p per mile for public charging
The requirement for the rate to acknowledge the discrepancy between public and private charging costs has been something that the BVRLA has pushed for in conjunction with the Association of Fleet Professionals (AFP).
In response to the change, BVRLA Director of Policy & Public Affairs, Thomas McLennan, said: “It is encouraging to see that HMRC continues to listen to the sector. The BVRLA and AFP have collaborated on this topic since 2021. Since then we’ve seen a regular review of AER introduced, plus this news that public and private rates will be split. Both were core changes we have pushed for.
“Policy change is rarely rapid, but this is a great reminder that change does come when we work together. Focus now turns to a ‘rapid charging’ rate as the current rate is not reflective of what many drivers will be experiencing.”
The AER falls under the same review cycle as the Advisory Fuel Rates (AFR), which will see two small changes implemented from 01 September.
Diesel vehicles with engines 1600cc or less will increase by one pence to 12ppm. Those with engines over 2000cc will also increase by one pence, to 18ppm.
All other rates remain the same and can be found via the gov.uk resource.
