HMRC Electric Car Mileage Allowance 2026/27: 55p Rate and AER Explained
By Major Accountancy Editorial Team · Reviewed by Shamayun Chowdhury · Last reviewed: October 2026 · Applies to the 2026/27 tax year
You drive an electric car for work and want to know what you can claim, but half the pages online still quote last year’s figures. This guide sets out the HMRC electric car mileage allowance for 2026/27, explains when the electricity rate applies instead, and shows the sums with real numbers.
If you use your own electric car for business, HMRC’s approved rate is 55p a mile for the first 10,000 business miles in 2026/27 and 25p after that. There is no separate EV rate. Company electric cars use the Advisory Electricity Rate instead: 7p a mile for home charging or 15p for public charging.
- The car rate rose from 45p to 55p a mile on 6 April 2026. The 25p rate above 10,000 miles did not change.
- Your own electric car gets the same rate as a petrol car, and that rate already covers charging.
- Company-owned electric cars use the Advisory Electricity Rate: 7p (home) or 15p (public) from 1 September 2026.
- Hybrid company cars use the petrol or diesel fuel rates, not the electric rate.
- If your employer pays less than the approved rate, you can claim tax relief on the gap.
What is the HMRC electric car mileage allowance for 2026/27?
The HMRC electric car mileage allowance for your own car is 55p per business mile for the first 10,000 miles in a tax year, then 25p per mile. These are the standard approved mileage allowance payment (AMAP) rates, and they apply to electric, petrol and diesel cars alike.
An employer can pay you up to these amounts tax-free. Anything above them counts as taxable pay. The rates are published in HMRC’s business mileage rules for employers.
The 55p change from 6 April 2026
For years the car rate sat at 45p. From 6 April 2026 it rose to 55p for the first 10,000 business miles. That gives a useful way to check any guide you read: if it still says 45p for 2026/27, it is out of date. Journeys made before 6 April 2026 still use 45p, so a claim covering both tax years needs two calculations.
Why there is no separate EV rate for your own car
The approved rate is meant to cover the full cost of running the car, not just fuel. GOV.UK confirms the mileage rate already includes fuel and electricity, road tax, MOTs and repairs. So the electric car mileage rates for a car you own are simply the standard car rates. You cannot add a separate charging claim on top.
Which rate applies to you?
The rate depends on who owns the car and how you work. Your own car uses 55p/25p. A company electric car uses the Advisory Electricity Rate. A hybrid company car uses the fuel rates. Sole traders can use the same 55p/25p through simplified expenses.
| Your situation | Rate for 2026/27 | What it covers |
|---|---|---|
| Employee using your own electric car | 55p (first 10,000 miles), then 25p | All running costs, including charging |
| Employee or director with a company electric car | 7p (home charging) or 15p (public charging) | Electricity used for business miles only |
| Hybrid company car | Petrol or diesel advisory fuel rate | Fuel for business miles |
| Sole trader using simplified expenses | 55p (first 10,000 miles), then 25p | All vehicle running costs |
| Director using your own car | 55p (first 10,000 miles), then 25p | All running costs, paid by the company |
Sources: Advisory fuel rates and simplified expenses for vehicles (GOV.UK), checked October 2026.
Using your own electric car for work
When you drive your own electric car on business, the HMRC electric car mileage allowance lets your employer pay up to 55p a mile for the first 10,000 business miles and 25p after that, free of tax and National Insurance. If they pay less, you can claim the difference from HMRC as Mileage Allowance Relief.
Business mileage means journeys you make for work, such as visiting a client or travelling to a temporary site. Your normal commute does not count. The mileage allowance for electric cars works exactly as it does for a petrol car, which surprises many drivers who expect a lower electric figure.
Amira is an employee who drives her own electric car 12,000 business miles in 2026/27. The HMRC electric car mileage allowance gives her a tax-free maximum of 10,000 × 55p = £5,500, plus 2,000 × 25p = £500. That is £6,000 in total.
What if your employer pays less? Mileage Allowance Relief
Amira’s employer pays a flat 40p a mile, so she receives 12,000 × 40p = £4,800. That leaves a gap of £1,200 below the approved amount. She can claim Mileage Allowance Relief on that £1,200, because the HMRC electric car mileage allowance sets the tax-free ceiling, not the amount an employer must pay. As a basic-rate taxpayer, the relief is worth 20% of £1,200, which is £240 off her tax.
According to GOV.UK’s guidance on vehicles you use for work, you can claim for the current tax year and the four years before it. You will need a log of each journey, including the reason and the start and end postcodes. If you file a Self Assessment return, claim there instead. The same log habit helps with other employee claims, such as the HMRC uniform laundry allowance.
What if they pay more? Tax and National Insurance on the excess
Anything paid above the approved rate is taxable. For National Insurance, HMRC uses 55p for every business mile, with no 25p tier. So the employer adds any excess over 55p a mile to pay and deducts Class 1 National Insurance through payroll. This is set out in HMRC’s mileage rules for National Insurance.
Company electric cars and the Advisory Electricity Rate
If your employer provides the electric car, the HMRC electric car mileage allowance at 55p does not apply. Instead, the Advisory Electricity Rate covers the electricity used for business miles. From 1 September 2026 it is 7p a mile when charged at home and 15p a mile when charged at a public charger.
These are the HMRC electric car mileage rates for company cars. They are reviewed every quarter, so check the current figures on HMRC’s advisory fuel rates page before each claim period. HMRC says the rates only apply to employees using a company car.
Home vs public charging
Many drivers charge in both places. HMRC allows the business miles to be split by where the car was charged, as long as the split is fair and reasonable.
Daniel drives a company electric car 3,000 business miles in a quarter. About 60% of his charging is at home and 40% at public chargers. His mileage claim for the electric car is 1,800 × 7p = £126, plus 1,200 × 15p = £180. That is £306 in total.
An employer can pay more than the advisory rate without a tax charge only if it can show the actual electricity cost per mile is higher.
Hybrid company cars use the fuel rates
Plug-in hybrids do not get the electric rate. HMRC treats hybrid company cars as petrol or diesel cars for advisory fuel rates, so use the rate for the engine size and fuel type.
How sole traders and directors use the HMRC electric car mileage allowance
Sole traders can claim the same 55p and 25p rates through simplified expenses instead of working out real running costs. Directors who use their own electric car can be paid the approved rate by their company. Directors with a company electric car use the Advisory Electricity Rate and pay Benefit in Kind tax on the car.
Sole traders: simplified expenses at 55p
If you are self-employed, the HMRC electric car mileage allowance works as a flat rate you deduct per business mile from your profits rather than adding up charging, insurance and servicing. For 2026/27 the rate for cars is 55p for the first 10,000 business miles and 25p after that, according to GOV.UK’s simplified expenses rules.
There are two conditions to watch:
- Once you use flat rates for a vehicle, you must keep using them for as long as that vehicle is used in your business.
- You cannot use flat rates for a car you have already claimed capital allowances on.
Parking and other travel costs, such as train fares, can still be claimed on top. If you are unsure whether flat rates or actual costs suit your electric car better, our accounts service for sole traders and micro-businesses can run both figures before you commit.
Limited company directors
A director is an employee of the company for these rules, so the HMRC electric car mileage allowance applies in the same way. When claiming mileage on electric cars you own personally, the company can pay you up to 55p and 25p tax-free and claim the cost as a business expense. Keep the same journey log an employee would.
A company-owned electric car is different. The company pays the Advisory Electricity Rate for business miles, and you are taxed on the car as a Benefit in Kind. For 2026/27 the appropriate percentage for a zero-emission car is 4%, up from 3% in 2025/26, according to HMRC’s Employment Income Manual. For help weighing a company car against a personal one, see our tax support for limited company directors.
Can you claim home charging costs?
For your own car, no. The 55p and 25p rates already include the cost of electricity, so a separate claim for home charging would count it twice. For a company car, the Advisory Electricity Rate covers business miles charged at home at 7p a mile.
This is where mileage allowances for electric cars most often go wrong. Some drivers claim the mileage rate and also send their employer a share of their home electricity bill. HMRC’s guidance on vehicles used for work states that the mileage rate covers fuel and electricity, so you cannot claim both.
Records HMRC expects
Keep a log of every business journey with the date, purpose, start and end postcodes and miles driven. For company electric cars, also note where the car was charged so the home and public split can be backed up.
| Date | Purpose | From / to (postcodes) | Business miles | Charged at (company car) |
|---|---|---|---|---|
| 14/10/2026 | Client meeting | LE5 → NG1 | 58 | Home |
| 16/10/2026 | Site visit | LE5 → CV1 | 64 | Public |
A spreadsheet or a mileage app is fine, as long as the entries are made at the time rather than rebuilt at year end.
Common mistakes with electric car mileage
| Mistake | What it costs | How to avoid it |
|---|---|---|
| Using 45p for 2026/27 journeys | You under-claim 10p a mile on the first 10,000 miles | Use 55p for journeys from 6 April 2026 |
| Counting the commute as business mileage | The payment becomes taxable pay | Log only journeys made for work |
| Claiming home charging on top of 55p | Electricity is paid for twice and the extra is taxable | For your own car, the mileage rate covers charging |
| Using the electric rate for a plug-in hybrid | The wrong rate on payroll | Hybrids use the petrol or diesel fuel rates |
| Rebuilding the mileage log at year end | The claim may be refused if HMRC asks for evidence | Record each trip on the day |
In practice, the costly error we see is employers still paying 45p after April 2026, below the HMRC electric car mileage allowance. The employee then has a shortfall they could claim back, and often doesn’t know it. If you are paid a fixed mileage rate, check it against 55p and keep your log, so a Mileage Allowance Relief claim is quick to make.
HMRC electric car mileage allowance FAQs
What are the mileage rates for electric cars in 2026/27?
For your own electric car, the rate is 55p a mile for the first 10,000 business miles and 25p after that. For a company electric car, it is the Advisory Electricity Rate: 7p a mile for home charging or 15p for public charging, from 1 September 2026.
Is there a separate HMRC electric car mileage allowance?
Not for cars you own. HMRC uses the same approved rate for electric, petrol and diesel cars. Only company cars have a separate electric rate.
Can I claim mileage and home charging for my own electric car?
No. The mileage rate already covers electricity, so claiming charging as well would count the same cost twice.
Do plug-in hybrids get the electric rate?
No. HMRC treats hybrid company cars as petrol or diesel cars, so the advisory fuel rate for the engine size applies.
How far back can I make a mileage claim for electric cars?
Employees can claim Mileage Allowance Relief for the current tax year and the four previous tax years, as long as they have records of the journeys.
What rate applies to journeys before 6 April 2026?
Journeys before 6 April 2026 use the old 45p rate for the first 10,000 business miles. Journeys from that date use 55p.
Final verdict: the HMRC electric car mileage allowance in one page
The HMRC electric car mileage allowance is simpler than it looks. Your own electric car gets 55p a mile for the first 10,000 business miles in 2026/27, then 25p, with charging included. A company electric car uses 7p or 15p depending on where it is charged. Keep a journey log and check your employer’s rate against 55p.
- Check whether your car is personal or company-owned, and use the matching rate above.
- Compare what you are paid with 55p a mile and keep a dated journey log.
- Need a director or sole trader mileage claim checked? See our director tax service, call 0116 4030595 or email info@majoraccountancy.com.
See our director tax service
or call 0116 4030595 · info@majoraccountancy.com
- Written by the Major Accountancy Editorial Team and reviewed by Shamayun Chowdhury, a chartered management accountant (ACMA, MAAT) with more than 15 years’ UK practice experience.
- Every rate checked against GOV.UK’s mileage, advisory fuel rate and simplified expenses guidance for 2026/27.
- Covers employees, company car drivers, sole traders and limited company directors.
- Last reviewed: October 2026.