Staff mileage claims: What you should be reimbursing staff driving electric vehicles (EVs)
As of 1 September 2025, you might be overpaying mileage for staff driving electric vehicles. James Conley discusses the change in mileage rates for electric vehicles and how this will affect staff mileage claims.
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It is well known that the government have been pushing hard to increase electric vehicle (EV) uptake, either through subsidies, tax benefits, and other incentives. The Net Zero by 2050 initiative has vastly increased the number of all-electric vehicles on our roads year on year. As a result, more and more employers are opting for EV’s as their company work vehicles – and who can blame them when some of the subsidies are as tempting as they are.
But here’s the catch: many businesses are still reimbursing staff their mileage at petrol or diesel rates (the traditional 45p per mile) even when staff are driving electric company cars.
What is changing?
From 1 September 2025, HMRC have determined the mileage rates for EVs will be:
- When charging at a home car charger: 8p per mile
- When using a public car charger 14p per mile
Clearly, that difference is going to be significant for a business. For every 10,000 miles claimed, there's a potential saving of up to £3,700 per vehicle. If your business relies on a high number of mobile staff in company cars who then claim their mileage, this could make a huge difference.
If your business hasn't updated its company car and expenses policies, you could be missing a major cost-saving opportunity and potentially paying a lot more than you should.
What can/should businesses do now?
- Review your expenses and mileage reimbursement policies.
- Make sure that they are aligned with the current HMRC-approved rates for company EVs.
- Communicate any changes clearly to employees.
For those that are unsure whether your policies are up to date, please do get in touch with our Employment Team who would be more than happy to review them for you. You can contact us by email at info@leathesprior.co.uk or by telephone on 01603 610911.


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