TMC EV Rates are a viable alternative to the HMRC AER, which is currently at 8p per mile, as they are a real-world cost per mile rate for each EV individually.
Our data team calculate the cost per mile for each electric car available in the UK when charged at home. These are updated every quarter and this rate can be used to reimburse your drivers.
The calculations are based on the manufacturer’s published WLTP figures and use an average home charging kW/h rate (currently 29p). There is an adjustment to account for real world driving.
Our analysis shows that the government’s Advisory Electric Rate (AER) of 8p per mile is not accurate for a number of electric vehicles, with many cars leaving drivers under-paid and some leaving drivers over-paid.
The research for Q3 of 2024 showed that only 266/965 electric car derivatives were covered by HMRC’s reimbursement rate of 8p per mile, with an average for all cars coming to 10.5p. The more the charging rate increases the higher the cost per mile for electric vehicles and the more unsuitable the AER becomes.
We also calculate the cost per mile for electric vans. The Q3 2024 research showed that one of the 416 electric van derivatives are able to be fairly covered by HMRC’s advisory electric rate, meaning based on our home charging tariff, almost all electric van drivers would be left out of pocket if reimbursed by the AER per mile. The average for all vans came to 17.9p.
The van figures are also calculated using an average home charging kW/h rate (currently 29p) and based on the manufacturer’s published WLTP figures, with an adjustment to account for real world driving.
We are on a mission to make business mileage reimbursement simple for businesses and electric vehicle drivers. To find out more on how we can help you reimburse your electric vehicle drivers for business mileage, visit our TMC-e webpage.
