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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Spring Statement 2026 - An Overview
With the Government having restricted itself to one fiscal event a year in the form of the Autumn Budget, the Spring Statement is perhaps not the dramatic moment it used to be. It is more a chance for the Government to respond to events and economic forecasts than to set policy for the future.
Charity of the Month: Sue Lambert Trust
Leathes Prior is delighted to be supporting the Sue Lambert Trust as our Charity of the Month for February 2026. Sue Lambert Trust is a leading charity in Norfolk offering free therapeutic counselling and support services to survivors of sexual violence and abuse.
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The Value of Planning Ahead: LPAs & Court of Protection
Putting LPAs in place allows you to choose trusted people to make decisions for you if you lose capacity in the future. This avoids the need for loved ones to make a costly and time-consuming deputyship application to the Court of Protection. With more people likely to experience conditions affecting capacity, more families may need to turn to the Court for support where no LPAs are in place.
Spring Statement 2026 - An Overview
With the Government having restricted itself to one fiscal event a year in the form of the Autumn Budget, the Spring Statement is perhaps not the dramatic moment it used to be. It is more a chance for the Government to respond to events and economic forecasts than to set policy for the future.
Charity of the Month: Sue Lambert Trust
Leathes Prior is delighted to be supporting the Sue Lambert Trust as our Charity of the Month for February 2026. Sue Lambert Trust is a leading charity in Norfolk offering free therapeutic counselling and support services to survivors of sexual violence and abuse.
Supreme Court ruling set to impact NHS - Children injured by NHS can claim damages for lifetime lost earnings
In February 2026, the Supreme Court passed a ruling which is set to significantly increase the amount of damages the NHS may have to pay for claims brought in respect of children injured at birth, as a result of medical negligence.
The Value of Planning Ahead: LPAs & Court of Protection
Putting LPAs in place allows you to choose trusted people to make decisions for you if you lose capacity in the future. This avoids the need for loved ones to make a costly and time-consuming deputyship application to the Court of Protection. With more people likely to experience conditions affecting capacity, more families may need to turn to the Court for support where no LPAs are in place.
The case of the fake cases: another judgment on AI-hallucinations in litigation
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Autumn Budget 2025: Agricultural Property Relief & Business Property Relief Changes
It was announced in the 2025 Budget that from 6 April 2026, changes will be made to agricultural property relief and business property relief. These changes bring APR and BPR in line with the nil-rate band rules, meaning unused allowances can be transferred to a surviving spouse or civil partner. This is a significant step towards making estate planning easier for families who own farms or businesses.
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The Employment Rights Act 2025 is expected to come into force tomorrow (18 December 2025)
After an extended period of back-and-forth amendments between Parliament and the House of Lords, on 16 December 2025, the ERB finally received approval from the House of Lords, with the formality of Royal Assent due to take place tomorrow (18 December 2025). Head of LP Employment, Dan Chapman, explains...
Charity of the Month: The Matthew Project
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Leathes Prior’s Milan Pandit appointed President of the Norfolk & Norwich Law Society
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Commercial Lease Renewals: A guide for Landlords & Tenants
Commercial lease renewals are a topic that every commercial landlord and business that rents commercial premises should have at the forefront of their minds. It is essential for good succession planning, though it is often neglected until the expiry of an existing lease term is looming or once the existing term has come to an end and the tenant is holding over. In this article, our newly qualified solicitor, Maggie Berry explores the process that landlords and tenants can expect when navigating this complex area of law.
Our Guidance, Your Legacy: What is a Will, and why should I make one?
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Lease extensions: The essentials to getting started
Extending your lease can seem complex, but taking the right steps early can make the process much smoother. Jake Mowatt, Associate and Harry Smith, Trainee Solicitor in our Residential Property Team outlines the key essentials every leaseholder should understand prior to extending their lease.
