Claiming mileage can be confusing, and the rules are different for electric and non-electric vehicles.

With HMRC recently updating their mileage rates, we’ve had a few questions on how to claim mileage when charging a company electric vehicle so we’ve summarised the details here in this guide.

There are two ways to claim: using your actual mileage, or by claiming the cost of charging.

Mileage log

You can keep a mileage log, which must include the location of the charge, and claim the HMRC-approved electric car mileage rate for business miles only.

From 1 June 2026 the advisory electric rates for fully electric cars are:

• 7 pence per mile for home charging
• 15 pence per mile for public charging

HMRC reviews these rates quarterly, and they may change regularly, so businesses should always check the latest HMRC guidance before processing mileage claims.

Actual electricity cost

When charging at home, you can contact your electricity provider to check whether they can separate the vehicle charging usage on your bill. If this is possible, you can submit the actual EV charging costs for reimbursement.

When charging at a public charging station, the cost can be claimed in full.

Won’t there be a Benefit in Kind?

A Benefit in Kind, on a company car, is the amount that HMRC treats as taxable because the employee has the personal use of that car as well as business use. HMRC views the perk as another form of income that doesn’t go through wages, so employees need pay tax on it.

However, where a company reimburses an employee for the cost of charging a company electric vehicle, regardless of whether employees use it for business or personal journeys, it is tax free! 

This is because reimbursing an employee for charging their electric vehicle is exempt from tax and therefore does not trigger a Benefit in Kind charge. Meaning there will be no extra unexpected tax bills for your employees at the end of the year.

The important point to remember is that a company can only reimburse employees for private miles when the actual electricity cost reimbursement method is used. When using the mileage log method, employees can only reclaim business miles. 

HMRC hopes this will be an incentive for more business owners to switch to using electric company cars instead of petrol or diesel.

Action for business owners

We suggest making sure you have processes and expense policies in place which make it clear how employees should claim mileage and which rates apply.

Tidy mileage procedures are one of the easiest ways to stay compliant, save tax, and avoid avoidable friction with HMRC.

If you’d like us to review your current expense policy or set up a mileage process that works with Dext, just get in touch. We’re happy to help.