HM Revenue & Customs (HMRC) has reduced the Advisory Electric Rate (AER) for electric cars to 7p per mile, effective from 1 September 2024.
The AER for fully electric cars is being reduced from 8ppm, having previously been 10ppm last December. The AER is decreased or increased in line with energy prices and reviewed quarterly with the advisory fuel rates.
Members and their customers are advised to shop around when it comes to home charging and make sure they are getting the best energy tariff available to suit their circumstances. Helpful guidance can be found on EVA England’s Useful Resources web page.
On the HMRC guidance page, there is also information about how AERs and AFRs are calculated. The latest rates are:
Petrol cars with an engine size of:
1400cc or less: reduced to 13ppm
1401cc to 2000cc: reduced to 15ppm
over 2000cc: reduced to 24ppm.
LPG:
1400cc or less: stayed the same at 11ppm
1401cc to 2000cc: stayed the same at 13ppm
over 2000cc: stayed the same at 21ppm
Diesel:
1600cc or less: reduced to 13ppm
1601cc to 2000cc: stayed the same at 15ppm
over 2000cc: up to 24ppm
Hybrid cars are treated as either petrol or diesel cars for AFR purposes.
See the GOV.UK website for the Advisory fuel rates from 1 September including AER.
