HMRC clarifies apportionment calculations for electric car mileage

7 Oct 2025

HMRC has updated the advisory fuel rates to reflect the decision to create different electric fuel rates for home and public charging, and how to split costs

The new guidance describes how to apportion the mileage for electric cars between public and residential locations.

For journeys where a company car is charged at both public and residential locations, companies can apportion the mileage based on how much charging happens at each place.

‘The apportionment calculation should be fair and reasonable,’ HMRC stressed.

From 1 September 2025 the advisory electric rates for fully electric cars were split into two bands, creating a new higher non-residential rate as follows, which replaced the previous standard rate of 7 pence per mile.

The new electric rates are: