Wondering what mileage you can claim for an electric car?

How much you can claim depends on something you probably haven’t thought about yet.

When you drive your car for business reasons like visiting clients, going to meetings, or picking up supplies, HMRC appreciate this costs you money. So they let you claim business mileage back, either as a business expense or through your tax return.

Think of it as the government saying: “We know using your car for business costs you fuel, wear and tear, insurance – so here’s some money back.”

Electric Car Mileage Rates 2025: The Key Question

Here’s where many new business owners get confused. The HMRC mileage rates 2025 you can claim depend entirely on one thing – who owns the car you’re driving.

Private Electric Car Mileage Claims

Own your electric car? Brilliant! You can claim Mileage Allowance Payments (MAPs) at 45p per mile for your first 10,000 business miles each year, then 25p per mile for anything over that threshold.

Yip – 45p per mile for electric cars, exactly the same rate whether your car runs on petrol, diesel, or electricity. HMRC doesn’t differentiate by fuel type when you’re using your own vehicle for business.

Company Electric Car Mileage Claims

If you’re driving a company car electric vehicle (even if it’s your own limited company), you can only claim the much smaller Advisory Fuel Rate (AFR). From September 2025, this is 8p per mile if you charge at home or 14p per mile if you use public charging points.

These latest electric vehicle mileage rates (links at bottom of page) reflect HMRC’s recognition that home charging is typically much cheaper than using public rapid chargers.

Why the Huge Difference in EV Mileage Rates?

The reason for this massive gap is simple. When you use your private car, the 45p per mile covers everything – electricity, insurance, wear and tear, depreciation, servicing costs. You’re paying for everything, so you get a generous allowance back.

With a company car, the 8p per mile only covers your electricity costs because the company already pays for insurance, servicing, depreciation, and all other running costs. You’re essentially just getting the ‘fuel’ element reimbursed.

Business Mileage Calculation Example

Let’s say you drive 12,000 business miles in your electric car during the year.

If it’s your private vehicle, you’d claim £4,500 for the first 10,000 miles plus £500 for the remaining 2,000 miles, giving you a total of £5,000.
If it’s a company electric car that you charge at home, you’d claim just £960 for all 12,000 miles.

That’s over £4,000 difference in electric car business expenses – quite significant for any business!

What Qualifies as Business Mileage?

You can claim business travel expenses when you drive to client meetings and site visits, attend networking events and conferences, make business supply runs, travel between different work locations, or visit the bank for business purposes.

Remember, you can’t claim for your regular commute to your main workplace or personal journeys, even if you take business calls whilst driving. The key test is whether the journey is wholly and exclusively for business purposes.

Business Mileage Record Keeping Requirements

Proper mileage records are absolutely essential, and HMRC can ask to see them at any time.

You need to record the date of each business journey, the business purpose such as client meeting or picking up supplies, your start and end locations, the mileage readings, and the total business miles for each trip.

Keep these records for at least five years after the end of the tax year they relate to. A mileage log app on your phone or a simple spreadsheet works perfectly – the format doesn’t matter as long as the information is complete and accurate.

Electric Vehicle Tax Benefits vs Mileage Claims

Wondering about company car vs private car for your electric vehicle? You should, because there are different benefits to consider with each approach.

With a company EV, you currently pay no Benefit-in-Kind tax on electric cars until April 2025, and the company covers all running costs including insurance, servicing, and repairs. However, you’re limited to the lower mileage claim rates of 8p or 14p per mile.

With a private EV, you get much higher mileage claim rates at 45p per mile, and you maintain complete control over all vehicle decisions including which model to buy and where to service it. The downside is that you cover all costs upfront and bear the risk of depreciation and unexpected repair bills.

Common New Business Owner Mileage Mistakes

Many new business owners make costly mistakes with their mileage claims. Some don’t claim anything at all, literally leaving money on the table that HMRC allows them to have. Others use the wrong rates, such as company car owners trying to claim 45p per mile when they should only claim 8p.

Poor record keeping is another major issue, with business owners failing to maintain proper mileage logs that HMRC requires. Some mix up business and personal travel, claiming for journeys that don’t qualify. Others forget about recent changes to electric car rate changes and continue using outdated rates from previous years.

How to Claim Business Mileage

If you’re employed, submit your expenses through your employer’s system using the correct electric vehicle mileage rates for your situation. Make sure you’re using 8p per mile for company car home charging or 14p for public charging.

If you’re self-employed, include your business car expenses in your Self Assessment return. You can choose between claiming actual costs like fuel, insurance, and repairs plus capital allowances, or using simplified mileage expenses with HMRC’s standard rates. For high-mileage users, the simplified approach often works out better.

Electric Car Mileage Claims: Getting Professional Help

Getting your business expense tracking right from day one saves you headaches later and ensures you’re claiming everything you’re entitled to. Many new business owners either miss out on legitimate claims or make mistakes that can cause problems with HMRC down the line.
Understanding business mileage allowances and maintaining compliant records doesn’t have to be overwhelming when you have proper guidance and systems in place.

Book a discovery call with our team and we’ll help you understand exactly what you can claim for your specific situation, set up simple tracking systems that work for your business, avoid the common HMRC compliance pitfalls that catch many new business owners, and maximise all your allowable business expenses from day one.

No jargon, no confusion – just practical help to get your business finances running smoothly from the start.

Your Next Steps

Don’t let confusion about mileage rates cost you money or cause compliance issues. Whether you’re driving your own electric car or a company vehicle, getting the rates right and keeping proper records is essential for any business.

The difference between 8p and 45p per mile might seem small, but over a year it can add up to thousands of pounds. Make sure you’re claiming what you’re entitled to whilst staying on the right side of HMRC’s requirements.

NOTE: Current rates mentioned apply from September 2025. Always check the latest HMRC guidance for current business mileage rates as these are reviewed quarterly.

For more detail refer to the below official HMRC Sources:

Advisory Fuel Rates for Company Cars
Mileage Allowance Payments for Private Cars
Business Expenses: Vehicles