As businesses adapt to the latest electric car mileage rates 2026 UK updates, it is essential to understand how HMRC mileage rules apply. The amount you can claim, or reimburse, depends on whether the car is your own vehicle or a company-provided car
That distinction matters. If you use your own electric car for work, HMRC’s approved mileage rates apply in the same way as they do for petrol or diesel cars. If you use a company electric car, HMRC uses advisory electricity rates instead. As of April 26, HMRC guidance on 13 April 2026, those rules are not the same.
What is the HMRC mileage rate for electric cars?
If you use your own electric car for business journeys, HMRC’s approved mileage allowance applies. The current rate is:
- 45p per mile for the first 10,000 business miles in the tax year
- 25p per mile for each business mile over 10,000
These rates apply to cars and vans generally, including electric vehicles. They are intended to cover the cost of owning and running the vehicle, so you cannot also claim separately for items such as electricity, vehicle tax, MOTs or repairs.
If you use a company-owned electric car, HMRC’s advisory for electricity rates may be used for business travel reimbursement. From 1 March 2026, the rates are:
- 7p per mile for home charging
- 15p per mile for public charging
Where a journey involves a mix of home and public charging, HMRC says the mileage can be apportioned on a fair and reasonable basis. HMRC also allows a higher rate where the actual electricity cost per mile is higher, and that cost can be evidenced.
What are the HMRC business mileage rates?
For employees using their own vehicle for business, the current approved mileage rates are:
- Cars and vans: 45p per mile for the first 10,000 business miles, then 25p per mile
- Motorcycles: 24p per mile
- Bicycles: 20p per mile
These approved rates have remained in place from the 2011/12 tax year onwards.
For company cars, HMRC uses advisory rates instead. From 1 March 2026, the rates are:
- Petrol cars
- 1400cc or less: 12p per mile
- 1401cc to 2000cc: 14p per mile
- Over 2000cc: 22p per mile
- Diesel cars
- 1600cc or less: 12p per mile
- 1601cc to 2000cc: 13p per mile
- Over 2000cc: 18p per mile
- Fully electric cars
- Home charging: 7p per mile
- Public charging: 15p per mile
Hybrid cars are treated as either petrol or diesel cars for advisory fuel rate purposes. HMRC also allows employers to continue using the previous advisory rates for up to one month after new rates take effect.
How are mileage rates calculated?
HMRC reviews advisory fuel and electricity rates quarterly, with changes normally taking effect on:
- 1 March
- 1 June
- 1 September
- 1 December
That means company car reimbursement rates can change during the year, so it is worth checking the date of travel as well as the type of vehicle.
For electric cars, HMRC says the advisory electricity rate is based on data including electricity prices from the Department for Energy Security and Net Zero, the Office for National Statistics, vehicle electricity consumption data from the Department for Transport, and fleet sales data. The public charging rate also uses public charging price data from the Zapmap Price Index.
By contrast, the approved mileage rates for employees using their own cars are much more stable. HMRC’s 45p and 25p rates are fixed approved amounts rather than short-term electricity price trackers.
Can you still claim 45p per mile for an electric car?
Yes, if the electric car is your own vehicle.
HMRC does not reduce the approved mileage rate simply because the car is electric. If you use your own electric car for business travel, the same approved rates apply as they do for other cars: 45p per mile for the first 10,000 business miles and 25p per mile after that.
However, that is different from using a company electric car. In that case, employers may use HMRC’s advisory electricity rates, and employees who personally incur business electricity costs in a company car may claim tax relief based on the actual cost if they are not fully reimbursed. HMRC’s guidance is clear that company car claims are handled differently from claims for an employee’s own vehicle.
If an employer pays less than the approved amount for business mileage in an employee’s own vehicle, the employee may be able to claim Mileage Allowance Relief on the shortfall.
Why this matters for businesses
As more businesses move towards electric vehicles, mileage policies need to keep pace. In practice, that means making sure your team knows:
- whether the vehicle is personally owned or a company car
- which HMRC rate applies
- whether charging took place at home, in public, or both
- what records need to be kept to support the claim
For employers, clear mileage processes can help reduce errors, avoid overpayments and make reimbursement fairer. For employees, good records are essential if they want to claim tax relief where they have not been fully reimbursed. HMRC says mileage logs should include the reason for each journey and the start and end postcodes.
Conclusion
Electric car mileage claims are still straightforward once the basic rule is clear: your own electric car uses HMRC’s approved mileage rates, while a company electric car uses HMRC’s advisory electricity rates or actual evidenced costs.
As of 13 April 2026, the key figures are:
- Own electric car: 45p per mile for the first 10,000 business miles, then 25p
- Company electric car: 7p per mile for home charging and 15p per mile for public charging, from 1 March 2026
Because HMRC reviews advisory rates regularly, it is worth checking the latest guidance before processing mileage claims, especially for company cars.
