Why the 15ppm Public Rate Demands Fleet Scrutiny

Published 04 September 2026

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A two-tier AER is a welcome step towards operational reality, but a flat 15ppm reimbursement does not reflect what high-mileage drivers or commercial van operators pay when forced onto ultra-rapid dynamic pricing. Fleet managers must remember: HMRC explicitly permits employers to reimburse at a higher rate than 15ppm, provided you can demonstrate the actual cost per mile incurred. Don't leave your field teams out of pocket—audit your charging data and use accurate telemetry.

John Curtis

Marketing and Operations

HMRC has published its updated Advisory Fuel Rates (AFRs) and Advisory Electric Rates (AERs), taking effect from 1 September 2026. While traditional combustion rates saw modest tweaks—diesel for engines over 1,600cc dropped slightly by 1p, while petrol over 2.0 litres jumped to 27ppm—the real focus remains on EV reimbursement.

The advisory electric rate remains split into two distinct tiers:

Home Charging: Maintained at 7ppm (based on an assumed domestic cost of 24.47p/kWh and a fleet efficiency of 3.59 miles/kWh).
Public Charging: Maintained at 15ppm (calculated against slow/fast public chargers under 50kW at around 54p/kWh).

The EV Café Take:

A two-tier AER is a welcome step towards operational reality, but a flat 15ppm reimbursement does not reflect what high-mileage drivers or commercial van operators pay when forced onto ultra-rapid dynamic pricing. Fleet managers must remember: HMRC explicitly permits employers to reimburse at a higher rate than 15ppm, provided you can demonstrate the actual cost per mile incurred. Don't leave your field teams out of pocket—audit your charging data and use accurate telemetry.

John raised the compliance and policing headache: mischievous drivers could easily claim the 15ppm public rate rather than the 7ppm home rate just to avoid being short-changed.

Sara branded the announcement "confused.com", stating outright that 15ppm is simply not enough for public charging.

Highlighted the perverse incentive: an employer can fully reimburse expensive train travel via expenses, but reimbursing an employee driving an EV leaves the driver out of pocket.
Highlighted the practical reality of public charging: getting VAT receipts at public chargers remains a slow, painful hassle.

Paul: Called out the government for creating unnecessary administrative friction, layers, and barriers that discourage electrification.

Warned that when HMRC systems become too complex and out of touch, people either give up, abandon company schemes, or seek alternative workarounds (like the 55p personal tax-free allowance), which slows down fleet transition.

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The advisory electric rate remains split into two distinct tiers:

Home Charging: Maintained at 7ppm (based on an assumed domestic cost of 24.47p/kWh and a fleet efficiency of 3.59 miles/kWh).
Public Charging: Maintained at 15ppm (calculated against slow/fast public chargers under 50kW at around 54p/kWh).

The EV Café Take:

John raised the compliance and policing headache: mischievous drivers could easily claim the 15ppm public rate rather than the 7ppm home rate just to avoid being short-changed.

Sara branded the announcement "confused.com", stating outright that 15ppm is simply not enough for public charging.

Highlighted the perverse incentive: an employer can fully reimburse expensive train travel via expenses, but reimbursing an employee driving an EV leaves the driver out of pocket.
Highlighted the practical reality of public charging: getting VAT receipts at public chargers remains a slow, painful hassle.

Paul: Called out the government for creating unnecessary administrative friction, layers, and barriers that discourage electrification.

Warned that when HMRC systems become too complex and out of touch, people either give up, abandon company schemes, or seek alternative workarounds (like the 55p personal tax-free allowance), which slows down fleet transition.