HMRC has announced a split in the advisory electricity rate (AER) for electric vehicles (EVs) in September. HMRC will now be distinguishing between home and public charging, the Labour Party government has confirmed.

The tax authority says its shake-up, which took hold on September 1 earlier this week, aims to more accurately reflect the costs incurred by company car drivers when charging their EVs.

Company car drivers will now be reimbursed at a rate of eight pence per mile (ppm) for electricity consumed during home charging. For public charging, the reimbursement rate has been set at 12ppm. The new rates will apply from 1 September, but the old rates can still be used for up to one month from that date.

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