EV mileage reimbursement: what drivers and businesses need to know
EV mileage reimbursement by Kyle Davey – EV Specialist, Fleetmaxx Solutions Ipswich
Understanding EV mileage reimbursement
As more drivers make the switch to electric vehicles (EVs), the way we handle mileage reimbursement is changing too. Whether you’re behind the wheel of a company EV or using your personal electric car for business travel, it’s essential to get reimbursement right — for drivers and employers alike.
From how much you’re owed to what systems help track journeys, this guide will break down the key facts so you can charge forward with confidence.
Why EVs have changed the mileage conversation
With petrol and diesel vehicles, reimbursing mileage is fairly straightforward: litres used, price per litre, miles travelled. But with EVs, it’s not just about how far you’ve gone — it’s about how much electricity you’ve used, where you charged, and how much it cost.
That’s why businesses are now reviewing their policies to ensure they’re reimbursing EV drivers fairly, whether it’s a company EV or a privately owned vehicle used for work.
Reimbursing mileage for company EVs
What the rules say
If you’re driving a company-owned electric vehicle, your employer can reimburse you using the HMRC Advisory Electricity Rate (AER). As of June 2024, the AER is 8 pence per mile. This rate is updated quarterly and aims to reflect average electricity costs incurred while driving for work purposes.
While it’s not mandatory to use this rate, it provides a standard benchmark that simplifies admin for both employers and employees. It’s worth noting, though, that the AER might not fully reflect real-world costs — especially with rising domestic electricity prices and varying public charging tariffs.
Reimbursing mileage for privately owned EVs
If you use your own EV for work
For employees using a personal EV for business travel, the Approved Mileage Allowance Payments (AMAP) apply — the same as for petrol and diesel cars:
- 45p per mile for the first 10,000 business miles
- 25p per mile thereafter
These rates account for the running costs of your vehicle — including electricity, insurance, wear and tear, and more. While some argue EVs cost less to run, HMRC keeps things simple by applying the same flat rate to all fuel types for privately owned vehicles.
Best practices
- Track every trip: Keep clear records of dates, miles, and journey purpose.
- Use technology: Mileage tracking apps or connected telematics systems help avoid guesswork.
- Check your company’s policy: Some businesses may offer different rates or extra support for EV drivers.
What affects EV mileage calculations?
EVs don’t run on fuel — they run on kilowatt-hours (kWh) of electricity. That means calculating efficiency and cost is a bit different. Instead of miles per gallon, you’re looking at kWh per mile.
Key factors include:
- Vehicle efficiency (some EVs use less energy per mile than others)
- Driving style (aggressive acceleration burns more energy)
- Weather (cold temperatures reduce battery performance)
- Charger type (home charging is often cheaper than rapid charging)
If you’re reimbursing or being reimbursed, these factors can make a big difference in the real cost of business mileage.
Rightcharge home charging makes it even simpler
One of the biggest questions we get from drivers is this: “How do I get reimbursed for charging at home?”
That’s where Rightcharge, our trusted partner for home EV charging solutions, comes in.
With Rightcharge, Fleetmaxx customers can access:
- Smart home charging units that track exactly how much electricity is used
- Integrated billing and reporting for easy reimbursement
- Tariff optimisation, so drivers can charge when electricity is cheapest
- No more expense claims or guesswork on electricity costs
It takes all the stress out of home charging — and ensures drivers aren’t left out of pocket when using their EVs for business.
Final thoughts from Kyle
As an EV specialist here at Fleetmaxx Solutions, I know that making the transition from petrol to electric comes with a lot of new questions — especially around cost and reimbursement. But with the right systems, smart policies, and tools like Rightcharge, it really doesn’t have to be complicated.
Whether you’re managing a fleet or just starting your EV journey, we’re here to help make it simple, fair, and future-proof.
Take the stress out of switching. Visit our website or reach out to us at 01367 704 910 to find out how we can help.
