Industry calls for review of Advisory Electricity Rate

The Association of Fleet Professionals and the BVRLA have joined forces to call upon Government to take steps to ensure that the Advisory Electricity Rate (AER) for electric vehicles is fit-for-purpose.

The industry bodies share concerns that the current 4 pence per mile rate, which remains unchanged since 2018, is no longer reflective of real-world conditions, and have written to HMRC to make the following recommendations:  

  • Review the current AER level  

  • Establish an ongoing review process for the AER   

  • Create a separate AER for vans  

  • Begin work on a hydrogen AFR.  

Advisory Rates are widely used by employers to determine reimbursement rates for employees claiming business mileage, with HMRC publishing updated AFRs quarterly for petrol, diesel, and hybrid vehicles.  

Read the press release issued 9 June 2021: Industry calls for review of the Advisory Electricity Rate for EVs.