Electric car mileage rates: own car or company car
It depends who owns the car. In your own electric car, HMRC’s approved rate is the same as for any car: 55p a mile for the first 10,000 business miles in 2026/27, then 25p. In a company electric car, the advisory electricity rate applies instead: 7p a mile if you charge at home and 15p on a public charger, from 1 September 2026.
Updated 31 October 2026 · By Odomint
Your own electric car: 55p a mile
HMRC sets one approved mileage rate for cars and vans, whatever they run on. For a car you own and use for work, that is 55p a mile for the first 10,000 business miles in the tax year and 25p a mile after that. It rose from 45p on 6 April 2026, so a claim for 2025/26 or earlier still uses 45p.
If your employer pays you less than that, you can claim tax relief on the difference, which is called Mileage Allowance Relief. If they pay more, the extra is taxable. Self-employed people using simplified expenses claim at the same flat rate for 2026/27.
For the self-employed, GOV.UK says the flat rate is used instead of the actual costs of buying and running the vehicle, such as insurance, repairs, servicing and fuel. So you cannot add charging costs on top. For employees, GOV.UK says the approved rate covers the cost of owning and running the vehicle, and that fuel and electricity cannot be claimed separately.
A company electric car: 7p or 15p a mile
When the car belongs to your employer, the employer is already paying for everything except the electricity or fuel. So HMRC’s advisory rates cover only that. From 1 September 2026, the advisory electricity rate for a fully electric company car is 7p a mile charged at home and 15p a mile charged in public.
Your employer can use these rates to pay you back for business miles in a company car, or to work out what you owe them for electricity used on private journeys. They can pay more if they can show the real cost per mile is higher. Otherwise, anything above the advisory rate is taxable and counts as earnings for National Insurance.
Hybrids
There is no separate rate for hybrids. A company hybrid is treated as a petrol or diesel car under the advisory fuel rates. A hybrid you own uses the same 55p and 25p as any other car.
Advisory fuel rates for petrol, diesel and LPG company cars
From 1 September 2026: petrol cars of 1,400cc or less, 14p a mile; 1,401cc to 2,000cc, 17p; over 2,000cc, 27p.
Diesel cars of 1,600cc or less, 15p a mile; 1,601cc to 2,000cc, 16p; over 2,000cc, 22p.
LPG cars of 1,400cc or less, 11p a mile; 1,401cc to 2,000cc, 13p; over 2,000cc, 20p.
HMRC reviews the rates every quarter, on 1 March, 1 June, 1 September and 1 December. You can carry on using the previous rates for up to a month after new ones start.
Why the two rates are so far apart
The approved rate pays for owning a car: the electricity or fuel, but also insurance, servicing, tyres and the value it loses as it ages. The advisory rate pays only for the electricity or fuel, because the company covers the rest. That is why the same mile in the same car can be worth 55p or 7p depending on whose name is on the logbook.
Keeping the records
Either way, the claim rests on a record of each business journey: the date, where you went, why, and how far. With Premium, Odomint records drives automatically and works out the claim at 55p and 25p. You can also set your own rate per mile for the current tax year, such as the advisory rate your employer pays for a company car.
Common questions
Can I claim 55p a mile in an electric car?
Yes, if it is your own car. HMRC’s approved rate is the same for every car: 55p a mile for the first 10,000 business miles in 2026/27 and 25p after.
What is the HMRC mileage rate for a company electric car?
From 1 September 2026, 7p a mile if you charge at home and 15p a mile on a public charger. These are HMRC’s advisory electricity rates.
Can I claim for home charging as well as 55p a mile?
No. If you are self-employed, the flat rate is used instead of the actual running costs, fuel included. If you are employed, GOV.UK says the approved rate covers fuel and electricity, so they cannot be claimed separately.
How often do the advisory fuel rates change?
Every quarter, on 1 March, 1 June, 1 September and 1 December. The previous rates can still be used for a month after a change.
Is there a mileage rate for hybrid cars?
Not a separate one. Company hybrids use the petrol or diesel advisory fuel rates, and a hybrid you own uses 55p and 25p.
Work out your mileage claim
Put in your business miles and what your employer pays, and see the claim and the tax you can get back. With Premium, Odomint records every drive by itself and adds the claim up at HMRC’s rate or your own, ready to export for an accountant.
Sources
Every figure on this page was checked against these on 31 October 2026.
- HMRC: Advisory fuel rates
- GOV.UK: Expenses and benefits, business travel mileage
- HMRC: Travel, mileage and fuel rates and allowances
- GOV.UK: Simplified expenses for vehicles
- GOV.UK: Claim tax relief for vehicles you use for work