HMRC has released its latest Advisory Fuel Rates (AFRs) and Advisory Electric Rates (AERs) for company car mileage claims, with changes applying from 1 December. Petrol, diesel and LPG rates remain unchanged — but the home-charging AER has been reduced.
For internal combustion engines, AFRs stay at:
Petrol: 12ppm (up to 1,400cc), 14ppm (1,401–2,000cc), 22ppm (over 2,000cc)
Diesel: 12ppm (up to 1,600cc), 13ppm (1,601–2,000cc), 18ppm (over 2,000cc)
LPG: 11ppm, 13ppm and 21ppm across the same bands
The headline change is on the EV side. HMRC’s split rate — introduced in September — has been updated with home charging now reimbursed at 7ppm, down from 8ppm. Public charging stays at 14ppm.
The 7ppm home rate reflects an electricity cost of 25.72p/kWh and an average EV efficiency of 3.59 miles/kWh. Public charging is calculated using a 52p/kWh cost based on Zapmap’s slow/fast charging index, uprated using latest ONS electricity data.
HMRC notes that employers can reimburse higher amounts for public charging if real-world costs exceed the advisory rate, particularly at ultra-rapid chargers.
Hybrid models continue to follow petrol or diesel AFR bands.