Home Charging vs Public Charging

What’s Changing for Electric Vehicle Mileage Reimbursement from September 2025

Starting 1 September 2025, HMRC is introducing a significant shift in how company car users are reimbursed for electric vehicle mileage. For the first time, drivers will use two different mileage rates based on where they plug in-home charging or public charging, instead of the flat rate previously used.

Home Charging Vs Public Charging – The Cost

EV charging costs can vary dramatically. Home electricity is generally much cheaper, while public chargers, especially fast or ultra-fast ones, can be considerably more expensive. A one-size-fits-all rate simply didn’t add up.

Breakdown of the New Rates

Charging Location	New Rate (pence per mile)
Home charging	8 p
Public charging	14 p

These replace the old flat rate of 7 p per mile that’s been in place since September 2024.

Home Charging vs Public Charging

• Home charging rate is based on average domestic electricity costs (around 27 p/kWh), matched with typical EV efficiency (about 3.59 miles per kWh), leading to an approximate cost of 7.5 p per mile, rounded up to 8 p.

• Public charging rate uses data from Zapmap’s public charging index (about 51 p/kWh for slow or fast chargers under 50 kW) paired with that same vehicle efficiency figure-working out to roughly 12.4 p per mile, rounded to 14 p.

The Government’s websites states that:

The advisory electric rate for fully electric cars is calculated using electrical price data from:

• Department for Energy Security and Net Zero

• Office for National Statistics (ONS)

• car electrical consumption rates from the Department for Transport (DfT)

• annual car sales volumes to businesses (Fleet Audits average for the last 3 years)

• The public charging advisory electric rate for fully electric cars is calculated using additional public charging price data from the Zapmap Price Index.

Charging location	Electrical efficiency miles per kilowatt-hour (weighted by car sales)	Electricity cost per kilowatt-hour (pence)	Rate per mile (pence)	Advisory electric rate
Home charger	3.59	27.04 pence	7.52 pence	8 pence
Public charger	3.59	51.00 pence	14.19 pence	14 pence

• The ‘Domestic electricity cost per kilowatt-hour’ is the Department for Energy Security and Net Zero annually published figure, uprated with the latest estimate of electricity prices from the Office for National Statistics.

• The ‘slow or fast public charge cost per kilowatt-hour’ is the Zapmap public charging price index monthly published figure for slow or fast chargers (charging speed less than 50 kilowatts), uprated with the latest estimate of electricity prices from the Office for National Statistics.

• A higher amount than the advisory rates can be used as long as you can show that the fuel cost per mile is higher. Therefore, if the public charger used is higher in cost per mile than the new advisory rate introduced for public charging, a higher rate can be used as long as you can show the cost per mile is higher.

• Hybrid cars are treated as either petrol or diesel cars for advisory fuel rates.

What It Means for Drivers and Employers

• Drivers charging more often in public will get fairly compensated

• Employers should track whether charging happens at home or publicly, as this matters now more than ever. The guidance does allow for higher reimbursement rates if drivers can show they’ve paid more (e.g., using ultra-fast charging), but that must be backed up with proof.

  
  

Source: Advisory fuel rates - GOV.UK