The example in the calculator
You charge your electric company car at home and drive 10,000 business miles a year.
- Advisory electricity rate (home charging): 7p a mile.
- Tax-free reimbursement: 10,000 × 7p = £700.
If you mainly used public chargers, the rate would be 15p: £1,500 for the same miles.
Advisory fuel rates from 1 September 2026
| Car | Rate per mile |
|---|---|
| Electric – home charging | 7p |
| Electric – public charging | 15p |
| Petrol 1,400cc or less | 14p |
| Petrol 1,401–2,000cc | 17p |
| Petrol over 2,000cc | 27p |
| Diesel 1,600cc or less | 15p |
| Diesel 1,601–2,000cc | 16p |
| Diesel over 2,000cc | 22p |
Hybrids use the petrol or diesel rate. LPG: 11p, 13p, 20p. HMRC reviews the rates every quarter; the next review is 1 December 2026.
Business miles at a glance
| Business miles | Home charging (7p) | Public charging (15p) |
|---|---|---|
| 2,000 | £140 | £300 |
| 5,000 | £350 | £750 |
| 10,000 | £700 | £1,500 |
| 15,000 | £1,050 | £2,250 |
| 20,000 | £1,400 | £3,000 |
Which rate should I use?
Use the public rate only when you actually paid public charging prices. Many employers ask for a split — 7p for miles charged at home, 15p for miles charged on the road with receipts. Your employer can also pay more than the advisory rate if you can show the real cost per mile is higher.
Your own electric car?
These 7p and 15p rates are only for company cars. If you drive your own electric car for work, you get the normal approved mileage rate: 55p a mile for the first 10,000 miles, then 25p. Switch the calculator to “Own vehicle” to see it.
Other friendly points
- Charging at a workplace charger is a tax-free benefit for employees.
- There is no fuel benefit charge on electricity, so free home charging paid by your employer does not trigger the £29,200 charge.
- Keep a log of business miles, just as with any company car.
What about plug-in hybrids?
A plug-in hybrid company car is treated as petrol or diesel for the advisory rates, so a 1,987cc petrol plug-in hybrid uses the 1,401–2,000cc petrol rate of 17p a mile. On 10,000 business miles that would be £1,700. Choose the model in the “Company car” part of the calculator to see it — the preset fills in fuel and engine size for you.
If your employer pays less than the advisory rate, there is no tax relief to claim for a company car — Mileage Allowance Relief is only for your own vehicle.
FAQ
What is the mileage rate for an electric company car?
7p a mile for home charging and 15p for public charging, from 1 September 2026. 10,000 business miles at 7p is £700 tax-free.
How much for 10,000 miles on public chargers?
10,000 × 15p = £1,500.
Do these rates apply to my own electric car?
No. In your own car you can be paid 55p a mile for the first 10,000 business miles and 25p after that, tax-free.
Sources: GOV.UK “Travel – mileage and fuel rates and allowances” (55p rate, updated 21 May 2026); ATT news 21 May 2026 (written statement HCWS62, backdated to 6 April 2026); GOV.UK “Advisory fuel rates” (rates from 1 September 2026, updated 21 August 2026); Ross Martin Tax Consultancy. Checked 5 November 2026.