HMRC Mileage Rate for Electric Cars: 55p AMAP Still Applies

AMAP is fuel-type neutral

HMRC's AMAP rates, published under EIM31200 of the Employment Income Manual, apply to the personal car category regardless of how the vehicle is powered. The 55p/25p rate applies to any car: petrol, diesel, hybrid, plug-in hybrid, or battery electric.

The rate held at 45p/25p from 6 April 2011 until it rose to 55p/25p on 6 April 2026. HMRC has not introduced a separate lower EV AMAP rate, despite the lower per-mile fuel cost of electric vehicles. The 55p figure is intended to cover all operating costs (fuel or electricity, insurance, depreciation), not just fuel.

Personal EV vs company EV: two different sets of rules

The rules differ based on who owns the car.

Personal EV (you own it, you use it for business): AMAP 55p/25p applies. You can claim this rate from your employer or, if self-employed, use it as the simplified mileage rate on Self Assessment.

Company EV (your employer owns or leases it, you drive it for business): AMAP does not apply. Company-car EV drivers are reimbursed using HMRC's Advisory Electricity Rate (AER), published quarterly at gov.uk/guidance/advisory-electricity-rate-for-fully-electric-vehicles. The AER covers only the electricity running cost, because the company already bears depreciation, insurance, and maintenance.

Confusing these is a common mistake. If the car belongs to your employer, do not claim AMAP. If you own the car and drive it for business, AMAP applies.

VAT reclaim: EV drivers use the AER, not AMAP

VAT-registered businesses can reclaim a portion of the VAT on the electricity used for business mileage. For electric cars, this uses HMRC's Advisory Electricity Rate, not the AMAP figure.

The AER is substantially lower than petrol Advisory Fuel Rates. HMRC has set the AER at around 7 to 9 pence per mile in recent quarters (check gov.uk for the current quarterly figure before calculating). The VAT reclaim is: business miles x AER, then divide that total by 6 to extract the 20 percent VAT included in the electricity cost.

Example: 10,000 business miles in the tax year, AER of 9p per mile. Deemed electricity cost: 10,000 x 0.09 = 900 pounds. VAT inside that figure: 900 / 6 = 150 pounds reclaimable. The driver's personal AMAP claim (55p x 10,000 miles = 5,500 pounds) is separate from the business's VAT reclaim.

Passenger payments apply equally to EVs

HMRC allows an additional 5 pence per mile per passenger when an employee carries a fellow employee on a business journey in their personal car. This passenger payment applies to electric cars the same as petrol cars and does not count toward the 10,000-mile AMAP tier.