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UK Sets New EV Reimbursement Rate as Ministers Weigh Road‑Charging Overhaul

HMRC cuts the advisory home‑charging rate to 7p per mile from 1 December to reflect real‑world electricity costs.

Overview

  • From 1 December, HMRC sets 7p per mile for home charging and keeps 14p per mile for public charging in advisory fuel rates for company EVs.
  • Multiple outlets report the Autumn Budget will inject about £1.3bn into EV purchase grants, trimming upfront prices by up to £3,750.
  • Transport Secretary Heidi Alexander said a fair vehicle tax system is needed for all motorists, after earlier Commons remarks on pay‑per‑mile were later described as a misspeak.
  • Unconfirmed reports suggest a potential ~3p‑per‑mile charge for EVs from 2028, estimated at about £267 a year for an average driver and roughly £375m across the current EV fleet.
  • HMRC guidance now requires apportioning home versus public charging with evidence for reimbursements, and fleets warn of administrative strain, while DfT proposals would ease cheaper home‑style charging access for households without driveways.