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What is the Advisory Electricity Rate from December 2021?
Advisory Fuel Rates (AFRs) are rates issued by HMRC and apply to employees using a company car. The rates are used when employers need to reimburse employees for business travel in their company cars OR when an employer needs to repay an employee for the cost of fuel used for private travel.
The Advisory Electricity Rate (AER) is the EV equivalent of Advisory Fuel Rates for petrol or diesel cars. Because electric cars do not have an engine size, there is a single AER for all fully electric vehicles.
The AER for electric vehicles has been increased to five pence per mile (ppm), up from 4ppm.
This new rate of 5ppm is the first rise since 2018 and applies from 1st December 2021.
You can read more on AER and AFRs here.