Electric car mileage rates 2026: 55p, 7p or 15p, and which one applies

There is no single “electric car mileage rate”. An electric car driven for work earns 55p a mile if it belongs to the employee and 7p or 15p if it belongs to the employer, and the difference is not about electricity — it is about who is paying for the car. This page sets out which rate applies when, how HMRC arrives at 7p and 15p, and the two rules that keep charging out of tax, from GOV.UK and the Income Tax (Earnings and Pensions) Act as read on 24 October 2026.

Which rate applies

The rule underneath is that the approved mileage rate pays for a whole car and the advisory rate pays only for fuel. GOV.UK on the approved rate: “This covers the cost of owning and running your vehicle.” On the advisory rates, HMRC is equally firm that they are for company cars only: “You must not use these rates in any other circumstances.”

Your own electric car: 55p a mile

The approved mileage rates are set in section 230 of ITEPA 2003 and do not distinguish fuel types. GOV.UK’s table for employees: “Cars and goods vehicles first 10,000 miles 55p 45p Cars and goods vehicles after 10,000 miles 25p 25p” (2026–27 rate first, then the rate before 6 April 2026). An employee paid less can claim the difference, but cannot add electricity on top: “You cannot claim separately for things like: fuel electricity vehicle tax MOTs repairs”

The full approved-rate rules — the 10,000-mile band, passengers and what happens when an employer pays more — are on HMRC mileage rates. Claiming the shortfall is covered on form P87.

A company electric car: the advisory electric rate

Paying at or below that rate is safe: “If the mileage rate you pay is no higher than the advisory fuel rates for the engine size and fuel type of the company car, there will be no taxable profit and no Class 1A National Insurance to pay.” The same page allows a higher rate with evidence — “A higher amount than the advisory rates can be used as long as you can show that the fuel cost per mile is higher.” The public rate is built on prices for “slow or fast chargers (charging speed less than 50 kilowatts)”. A driver who mostly charges above that speed is outside the data behind 15p, and the evidence route is the one to use if their cost per mile is higher.

Home and public charging on the same car

“For journeys where a company car is charged at both public and residential locations, you can apportion the mileage based on how much charging happens at each place.” “The apportionment calculation should be fair and reasonable.” A driver who charges half at home and half on the road can be paid the two rates in proportion.

How HMRC works out 7p and 15p

“The advisory electric rate for fully electric cars is calculated using electrical price data from” DESNZ, the ONS and the DfT. “Based on company car sales data across the last 3 years, a weighted average value of the electrical costs per mile for a fully electric car is then calculated.” The published calculation for September 2026, laid out as GOV.UK gives it (efficiency in miles per kWh, price per kWh, cost per mile, rate):

The two rates use the same efficiency figure, so the whole difference between 7p and 15p is the price of a kilowatt-hour: public charging costs more than twice as much per unit as home electricity in HMRC’s figures.

The rate, quarter by quarter

GOV.UK: “HMRC reviews rates quarterly on: 1 March 1 June 1 September 1 December”. And “You can use the previous rates for up to 1 month from the date any new rates apply.” Petrol, diesel and LPG rates for the same quarters are on advisory fuel rates.

Worked figures for 6,000 business miles

Charging: the two rules that keep it out of tax

• Company cars: no fuel benefit on electricity. ITEPA s.149(4): “References in this section to fuel do not include any facility or means for supplying electrical energy”. An employer that pays for a company electric car’s charging, including private miles, does not trigger the car fuel benefit that applies to petrol and diesel. The car itself is still taxed on its list price: company car tax.
• Charging at work: exempt if open to all. s.237A(1): “No liability to income tax arises in respect of the provision, at or near an employee's workplace, of facilities for charging a battery of a vehicle used by the employee (including a vehicle used by the employee as a passenger).” With the condition in s.237A(2): “Subsection (1) applies only if the facilities are made available generally to the employer's employees at that workplace.” The section covers vehicles “which is neither a taxable car nor a taxable van” — company cars are dealt with by s.149(4) instead.

Reclaiming VAT on electric mileage uses the same advisory rates and is set out on VAT on mileage claims.

For a travel or expenses policy

• State which rate applies by ownership, not fuel: own car 55p; company electric car 7p home, 15p public.
• Say how home and public charging are apportioned, and what evidence supports a higher rate.
• Put plug-in hybrids on the petrol or diesel rate.
• Diary the quarterly change dates: 1 December, 1 March, 1 June, 1 September.
• If you offer workplace charging, make it available to staff generally.

Policy wording is on the expenses policy template. This page quotes GOV.UK, ITEPA 2003 and the NHS handbook as read on 24 October 2026; the advisory electric rate is checked against the advisory fuel rates data every time this site is built.

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