{"id":18339,"date":"2025-09-04T09:33:20","date_gmt":"2025-09-04T13:33:20","guid":{"rendered":"https:\/\/uk.holman.com\/uk\/?p=18339"},"modified":"2026-07-28T08:22:43","modified_gmt":"2026-07-28T12:22:43","slug":"new-ev-reimbursement-rates-explained","status":"publish","type":"post","link":"https:\/\/uk.holman.com\/uk\/resources\/new-ev-reimbursement-rates-explained\/","title":{"rendered":"New EV Reimbursement Rates Explained"},"content":{"rendered":"<span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> &lt; 1<\/span> <span class=\"rt-label rt-postfix\">minute<\/span><\/span> \n\n\n\t\t\t\n\t\n\t\t\t<div class='resource-header-container' style='position:relative;'>\n\t\t<div class=''><nav aria-label=\"breadcrumbs\" class=\"rank-math-breadcrumb\"><p><span class=\"last\">Home<\/span><\/p><\/nav><\/div>\n        <div id='blog-title'><h1>New EV Reimbursement Rates Explained<\/h1><\/div>\n            <img src='https:\/\/uk.holman.com\/uk\/wp-content\/uploads\/2025\/09\/Blog.png' alt='White electric vehicle charging on a public charger' id='blog-header-image' style='width:100%;object-fit:cover;object-position: center;'>                            \n\t\t\t<aside style='max-width:298px;margin-top:62px;' id='mobile-info'>\n\t\t\t\t<div class='blog-info-box'><p class='aside-header'>Posted<\/p>\n\t\t\t\t<p class='aside-info'>September 4, 2025<\/p><\/div>\n\t\t\t\t<div class='blog-info-box'><p class='aside-header'>Type<\/p>\n\t\t\t\t<p class='aside-info'>\n\t\t\t\t\tBlog\t\t\t\t<\/p><\/div>\n\t\t\t\t<div class='blog-info-box' id='social-icons'><p class='aside-header'>Share<\/p>\n\t\t\t\t\t\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.facebook.com\/sharer.php?u=https:\/\/uk.holman.com\/uk\/resources\/new-ev-reimbursement-rates-explained\/\" id=\"footer-mobile-facebook-link\" title=\"Facebook\" target=\"_blank\" class='aside-info'>\n\t\t\t\t\t\t\t\t<img decoding=\"async\" src=\"https:\/\/uk.holman.com\/uk\/wp-content\/themes\/holman\/assets\/images\/facebook-share.png\" alt=\"Facebook\" \/>\n\t\t\t\t\t\t\t<\/a> <!-- .item -->\n\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.linkedin.com\/sharing\/share-offsite\/?url=https:\/\/uk.holman.com\/uk\/resources\/new-ev-reimbursement-rates-explained\/\" id=\"footer-mobile-linked-link\" title=\"linkedin\" target=\"_blank\" class='aside-info'>\n\t\t\t\t\t\t\t\t<img decoding=\"async\" src=\"https:\/\/uk.holman.com\/uk\/wp-content\/themes\/holman\/assets\/images\/linkedin-share.png\" alt=\"LinkedIn\" \/>\n\t\t\t\t\t\t\t<\/a> <!-- .item -->\n\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\t\t\t<a href=\"mailto:?subject=New EV Reimbursement Rates Explained&#038;body=I wanted to share this content from Holman! 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24px;}\n\t\t.case-study-feature:first-of-type{width:100%;justify-content:flex-start;}\n\t\t#case-study-header-title{color:#2C9942;font-weight:500;font-size:14px;padding:0;margin:0;width:100%;}\n\t\t#case-study-header-description{color:#003057;font-weight:500;font-size:14px;padding:0;margin:0;width:100%;}\n\t\t.case-study-feature img{width:45px;min-width:45px;}\n\t\t#case-study-image{object-fit:cover;}\n\t\t.fullscreen{width:100%;height:100%;position:absolute;top:0;left:0;}\n\t\t#form-container-gated{width:101%;height:100%;margin:0 auto;z-index:99;top:0;position:absolute;background-color:rgba(0,0,0,0.8);display:flex;flex-direction:column;justify-content:center;}\n\t\t#form-container-gated #ebook-form{display:flex;flex-direction:column;justify-content:space-between;width:425px;margin:0 auto;border-top:0.5px solid rgba(0, 0, 0, 0.050);box-shadow: 1px 4px 4px 0px rgba(0, 0, 0, 0.50);text-align:center;padding:32px;z-index:9999;background-color:white;}\n\t\t#form-container-gated #ebook-form .wpcf7 label{text-align:left;font-size:10px;width:49%;font-weight:500;}\n\t\t#form-container-gated #ebook-form .wpcf7 label:nth-child(odd):last-child{width:100%;}\n\t\t#form-container-gated #ebook-form .wpcf7 input, #form-container-gated #ebook-form .wpcf7 input[type=url], #form-container-gated #ebook-form .wpcf7 input[type=email], #form-container-gated #ebook-form .wpcf7 input[type=tel], #form-container-gated #ebook-form .wpcf7 input[type=text], #form-container-gated #ebook-form .wpcf7 select, #form-container-gated #ebook-form .wpcf7 input[type=textarea][type=text]{height:32px;}\n\n\t\t#form-container-gated #ebook-form .wpcf7 .wpcf7-submit{margin:24px auto 0;}\n\t\tbody:has(.gated) a#footer-mobile-download-link{display:none;}\n\t\tbody:has(.ungated) a#footer-mobile-download-link{display:inline-block !important;}\n\t\t.ebook-overlay.gated{width:100%;height:100%;position:relative;}\n\t\t@media(max-width:900px){#form-container-gated #ebook-form{width:100%;}.ebook-overlay.gated{min-height:435px;}#form-container-gated #ebook-form .wpcf7 label{width:100%;}#icon-container{flex-direction:column;gap:24px 0;}#case-study-header-title,#case-study-header-description{font-size:12px;}.case-study-feature{width:100%;justify-content:flex-start;}#case-study-image{height:auto;}}\t\t\t\t\n\t\t<\/style>\n\n\n \n\n\n\t\t\t\n\t\n\t\t\t \n\t\t<section class='resource-wysiwyg'>\n\t\t\t        \t<div><p>HMRC has announced a major update to electric vehicle (EV) mileage reimbursement rates. As of 1st September 2025, mileage rates will now separate out\u00a0home and\u00a0public charging\u00a0for electric vehicles. It\u2019s a move that reflects the real-world complexity of EV charging costs, and it\u2019s going to require fleets to rethink how they manage expenses and support drivers.<\/p>\n<h2>Why This Matters<\/h2>\n<p>Until now, EV drivers were reimbursed using a single rate &#8211; 7p per mile &#8211; regardless of where they charged.<\/p>\n<p>This approach didn\u2019t reflect the significant cost differences between home and public charging.<\/p>\n<p>With HMRC\u2019s new rates now in effect &#8211; <strong>8p per mile for home charging and 14p per mile for public charging<\/strong> &#8211; the system better accounts for these variations:<\/p>\n<ul style=\"font-size: 14px;\">\n<li><strong><em>Public charging:<\/em><\/strong> Costs vary widely depending on speed, location, and operator. According to <a href=\"https:\/\/www.zap-map.com\/ev-stats\/charging-price-index\" target=\"_blank\" rel=\"noopener\">Zap-Map\u2019s Charging Price Index<\/a>, rapid chargers can exceed 80p per kWh, while slower options may be significantly cheaper.<\/li>\n<li><strong><em>Home charging:<\/em><\/strong> Often up to\u00a010x cheaper\u00a0than public charging. HMRC uses the Ofgem domestic electricity price cap (currently ~27p per kWh) as its benchmark. However, many EV drivers could benefit from\u00a0smart tariffs\u00a0offering rates as low as\u00a07p per kWh, depending on time-of-use deals.<\/li>\n<\/ul>\n<p>Despite these potential savings, <a href=\"https:\/\/www.cornwall-insight.com\/press-and-media\/press-release\/switching-to-an-ev-could-save-drivers-up-to-800-a-year-in-refuelling-costs\/\" target=\"_blank\" rel=\"noopener\">a recent survey<\/a> found that\u00a0only 18% of EV drivers\u00a0are on dedicated EV energy tariffs. Most rely on the standard domestic rate, making HMRC\u2019s benchmark a fairer starting point, but not the full picture.<\/p>\n<p>So what next? As Ross Palman explains, \u00a0we may see one of two approaches emerge:<\/p>\n<p><strong>Split mileage entries<\/strong>: Expense systems could allow drivers to log home and public charging separately, with rates applied accordingly. While this offers precision, it adds complexity for both drivers and administrators &#8211; and verifying claims may prove challenging.<\/p>\n<p><strong>Blended rate<\/strong>: Alternatively, fleets might simplify the process by adjusting the overall mileage rate to reflect a typical mix of charging methods, while maintaining a single-entry format.<\/p>\n<p>&nbsp;<\/p>\n<\/div>\n\t\t<\/section>\n\t\t\n\t\t\t\n<style>\n\tsection{margin:0;}\n\tp img{display:block !important;}\nsection.resource-wysiwyg{margin:20px 0 0;padding:0;}\nsection.resource-wysiwyg:first-of-type {margin:35px 0 0;padding:0;}\n.resource-wysiwyg p{margin-bottom:16px;}\n.resource-wysiwyg h3{margin-bottom:16px;color:#003057;font-weight:500;}\n.resource-wysiwyg p:last-of-type{margin-bottom:0px;}\n.resource-wysiwyg p img{display:block !important;}\n.resource-wysiwyg img{padding:16px 24px;max-width:40%;display:block;}\n.resource-wysiwyg img.alignright{float:right;padding-right:0px;}\n.resource-wysiwyg img.alignleft{float:left;padding-left:0px;}\n#form-container-gated #ebook-form h2, #form-container-gated #ebook-form h3, #form-container-gated #ebook-form h4{margin-top:0px;}\n@media(max-width:600px){section.resource-wysiwyg:first-of-type{margin:16px 0 0;}.resource-wysiwyg img{max-width:50%;height:auto;padding:8px 12px;}}\n<\/style>\n\n\n    <section class=\"holman-resources quote-testimonial\" id=\"\">\n        <div class=\"inner\">\n            <div class=\"quote-testimonial-quote\">\n                <div class=\"body-1\"><p>Ultimately, the approach taken will likely vary by fleet, depending on the complexity of their systems and how they currently manage employee customer reimbursements.<\/p>\n<\/div>\n                <div class=\"quote-testimonial-author\">\n                <div class=\"quote-testimonial-text\">\n                    <h6 class=\"headline-6\">Ross Palman<\/h6>\n                    <p style='font-weight:bold;margin-bottom:0px;'>Holman\u2019s EV Lead<\/p>\n                <\/div>\n            <\/div>\n            <\/div>\n            \n        <\/div>\n        <style>.holman-resources.quote-testimonial .quote-testimonial-text .headline-6{font-weight:bold !important;}.holman-resources.quote-testimonial .inner .quote-testimonial-author .quote-testimonial-text h6{font-weight:normal;}.holman-resources.quote-testimonial .inner .quote-testimonial-author{padding-left:0px !important;}.holman-resources.quote-testimonial .inner .quote-testimonial-quote{padding-left:18px;}.holman-resources.quote-testimonial .inner .quote-testimonial-quote p::before{border-left:0px solid !important;}.square img{border-radius:0% !important;}.holman-resources.quote-testimonial{background:white;}.holman-resources.quote-testimonial .inner .quote-testimonial-quote{max-width:100%;}.holman-resources.quote-testimonial .inner{flex-direction:column;}.holman-resources.quote-testimonial .inner .quote-testimonial-quote p::before{display:none;}.holman-resources.quote-testimonial .inner .quote-testimonial-quote{margin-bottom:0px !important;}.holman-resources.quote-testimonial .inner .quote-testimonial-quote p::before{border-top:0px !important;}.holman-resources.quote-testimonial{margin:40px 0 !important;padding:0;} .holman-resources.quote-testimonial .inner{padding:0px 0 !important;}\n        @media (max-width: 1300px){.holman-resources.quote-testimonial{margin:20px 0 !important;}.quote-testimonial-text{flex-grow:1 !important;}}\n        @media(max-width:690px){.quot-testimonial .inner{padding:0px !important;}.holman-resources.quote-testimonial .inner .quote-testimonial-author .quote-testimonial-text h6{font-size:12px;}}\n        <\/style>\n    <\/section>\n\n\n \n\n\n\t\t\t\n\t\n\t\t\t \n\t\t<section class='resource-wysiwyg'>\n\t\t\t        \t<div><h2>Efficiency Isn\u2019t Equal<\/h2>\n<p>Whilst HMRC\u2019s EV reimbursement model assumes an average EV efficiency of 3.59 miles per kWh, for larger, less efficient EVs like the Audi Q6 e-tron (3.0 mi\/kWh) or Kia EV9 (3.3 mi\/kWh) may benefit from these changes<\/p>\n<p>But more efficient models, like the Mercedes-Benz CLA Electric (5.1 mi\/kWh) or Tesla Model 3 (5.0 mi\/kWh), can travel much further on the same charge and therefore potentially suffer.<\/p>\n<p>This may result in reimbursement being either too generous or too lean, and should be monitored closely.<\/p>\n<h2>What Fleets Need to Do Now<\/h2>\n<p>With the new rates now in effect, here are the top three actions to help navigate these changes:<\/p>\n<p><strong>1. Update EV reimbursement policies<\/strong>\u00a0to clearly reflect the split between public and home EV charging.<\/p>\n<p><strong>2. Review your expense systems<\/strong>\u00a0to ensure they support more detailed reporting, especially for drivers who use both charging methods.<\/p>\n<p><strong>3. Decide on your EV reimbursement approach<\/strong>: stick with HMRC\u2019s standard rates or opt for actual cost reimbursement using receipts and tariff details for greater accuracy and fairness.<\/p>\n<p>This is also a great opportunity to\u00a0educate drivers on EV energy tariffs, helping them make smarter, more cost-effective charging decisions.<\/p>\n<h2>Looking Ahead<\/h2>\n<p>HMRC\u2019s update is a crucial step in recognising the true cost of EV charging. But it\u2019s also a reminder that fleets must keep evolving, ensuring systems and policies are fit for purpose and ready to meet new requirements.<\/p>\n<p>Our experts stay ahead of regulatory changes and work closely with our customers to get the most from their electrified fleets. Wherever you are on your sustainability journey, <a href=\"https:\/\/uk.holman.com\/uk\/contact\/\">we\u2019re here to support<\/a> you.<\/p>\n<\/div>\n\t\t<\/section>\n\t\t\n\t\t\t\n<style>\n\tsection{margin:0;}\n\tp img{display:block !important;}\nsection.resource-wysiwyg{margin:20px 0 0;padding:0;}\nsection.resource-wysiwyg:first-of-type {margin:35px 0 0;padding:0;}\n.resource-wysiwyg p{margin-bottom:16px;}\n.resource-wysiwyg h3{margin-bottom:16px;color:#003057;font-weight:500;}\n.resource-wysiwyg p:last-of-type{margin-bottom:0px;}\n.resource-wysiwyg p img{display:block !important;}\n.resource-wysiwyg img{padding:16px 24px;max-width:40%;display:block;}\n.resource-wysiwyg img.alignright{float:right;padding-right:0px;}\n.resource-wysiwyg img.alignleft{float:left;padding-left:0px;}\n#form-container-gated #ebook-form h2, #form-container-gated #ebook-form h3, #form-container-gated #ebook-form h4{margin-top:0px;}\n@media(max-width:600px){section.resource-wysiwyg:first-of-type{margin:16px 0 0;}.resource-wysiwyg img{max-width:50%;height:auto;padding:8px 12px;}}\n<\/style>\n","protected":false},"excerpt":{"rendered":"<span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> &lt; 1<\/span> <span class=\"rt-label rt-postfix\">minute<\/span><\/span>","protected":false},"author":37,"featured_media":18341,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[137,131,130],"tags":[102,116,143,157,117],"blog-type":[91],"featured":[90],"legacy":[],"topic":[],"class_list":["post-18339","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-electric-vehicles","category-fleet-management","category-news","tag-blogs","tag-electrification","tag-fleet-management","tag-news","tag-vehicle-management","blog-type-blog","featured-no"],"acf":[],"permalink_manager":null,"_links":{"self":[{"href":"https:\/\/uk.holman.com\/uk\/wp-json\/wp\/v2\/posts\/18339","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/uk.holman.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/uk.holman.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/uk.holman.com\/uk\/wp-json\/wp\/v2\/users\/37"}],"replies":[{"embeddable":true,"href":"https:\/\/uk.holman.com\/uk\/wp-json\/wp\/v2\/comments?post=18339"}],"version-history":[{"count":27,"href":"https:\/\/uk.holman.com\/uk\/wp-json\/wp\/v2\/posts\/18339\/revisions"}],"predecessor-version":[{"id":18467,"href":"https:\/\/uk.holman.com\/uk\/wp-json\/wp\/v2\/posts\/18339\/revisions\/18467"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/uk.holman.com\/uk\/wp-json\/wp\/v2\/media\/18341"}],"wp:attachment":[{"href":"https:\/\/uk.holman.com\/uk\/wp-json\/wp\/v2\/media?parent=18339"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/uk.holman.com\/uk\/wp-json\/wp\/v2\/categories?post=18339"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/uk.holman.com\/uk\/wp-json\/wp\/v2\/tags?post=18339"},{"taxonomy":"blog-type","embeddable":true,"href":"https:\/\/uk.holman.com\/uk\/wp-json\/wp\/v2\/blog-type?post=18339"},{"taxonomy":"featured","embeddable":true,"href":"https:\/\/uk.holman.com\/uk\/wp-json\/wp\/v2\/featured?post=18339"},{"taxonomy":"legacy","embeddable":true,"href":"https:\/\/uk.holman.com\/uk\/wp-json\/wp\/v2\/legacy?post=18339"},{"taxonomy":"topic","embeddable":true,"href":"https:\/\/uk.holman.com\/uk\/wp-json\/wp\/v2\/topic?post=18339"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}