HM Revenue & Customs (HMRC) has announced the Advisory Electric Rate (AER) and Advisory Fuel Rate (AFR), effective from 1 June 2025.
The AER for fully electric cars is staying the same at 7ppm (pence per mile). The AER is adjusted in line with energy prices and reviewed quarterly with the advisory fuel rates.
With a large portion of electric company cars being charged privately, members and their customers are advised to shop around when it comes to home charging and make sure they are getting the best energy tariff available to suit their circumstances. Helpful guidance can be found on EVA England’s Useful Resources web page.
On the HMRC guidance page, there is also information about how AERs and AFRs are calculated. The latest rates are:
Petrol cars with an engine size of:
1400cc or less: stayed the same at 12ppm
1401cc to 2000cc: reduced to 14ppm
over 2000cc: reduced to 22ppm.
LPG:
1400cc or less: stayed the same at 11ppm
1401cc to 2000cc: stayed the same at 13ppm
over 2000cc: stayed the same at 21ppm.
Diesel:
1600cc or less: reduced to 11ppm
1601cc to 2000cc: stayed the same at 13ppm
over 2000cc: stayed the same at 17ppm.
Hybrid cars are treated as either petrol or diesel cars for AFR purposes.
See the GOV.UK website for the Advisory fuel rates from 1 June including AER.
