The latest Advisory Fuel Rates (AFRs) from HMRC, effective 1 September 2025, introduce a key change for electric vehicle users: the single Advisory Electricity Rate (AER) has now been split into two separate rates depending on how a vehicle is charged.
Drivers charging at home can claim 8 pence per mile, while those using public charging networks can now claim 14 pence per mile. This is the first time HMRC has set dual reimbursement rates for electric vehicles, reflecting the higher costs associated with public charging.
HMRC says that a higher amount than the advisory electric rates can be used. It says that if the public charger used is higher in cost per mile than the new public charging advisory rate, a rate above 14 pence can be used as long as the business can clearly demonstrate the increased cost.
Rates for petrol and diesel, which includes hybrid vehicles, have also been adjusted in line with fuel market changes. As with previous updates – see last quarter AFRs here – these rates are advisory and can be adjusted by employers if backed by evidence.
Latest HMRC Advisory Fuel Rates (as of 1 September 2025)
| Petrol (inc. hybrid): engine size (cc) | Advisory fuel rate |
| 1400 cc or less | 12 pence (no change) |
| 1401cc to 2000cc | 14 pence (no change) |
| Over 2000cc | 22 pence (no change) |
| Diesel (inc. hybrid): engine size (cc) | Advisory fuel rate |
| 1600 cc or less | 12 pence (+1p) |
| 1601cc to 2000cc | 13 pence (no change) |
| Over 2000cc | 18 pence (+1p) |
| Fully Electric | Advisory fuel rate |
| All cars | 8 pence (+1p home) / 14p (new public rate) |
