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.
Proposals for reform of cohabitation rights on the death of a cohabitating partner
Georgia Sartin, a Solicitor in our Property and Contentious Probate Team explores the government’s recent open consultation ‘a fairer end to relationships’ published on 5 June 2026, , in respect of the proposals for reform for cohabitants in the intestacy framework and 1975 Act claims.
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Who is accountable for maternity safety? The case for a maternity commissioner following the birth trauma inquiry.
The safety of maternity services in England has been under intense scrutiny in recent years, now, a national campaign has been launched for the appointment of a dedicated Maternity Commissioner.
What is the difference between a share sale and an asset sale?
When running a business, company founders and shareholders will inevitably, at one stage or another, want to consider potential succession options, the most prominent being an exit by way of trade sale. Hugo Persad, Trainee Solicitor in our Corporate Team provides an overview of what the difference is between a share sale and an asset sale.
Proposals for reform of cohabitation rights on the death of a cohabitating partner
Georgia Sartin, a Solicitor in our Property and Contentious Probate Team explores the government’s recent open consultation ‘a fairer end to relationships’ published on 5 June 2026, , in respect of the proposals for reform for cohabitants in the intestacy framework and 1975 Act claims.
Who is accountable for maternity safety? The case for a maternity commissioner following the birth trauma inquiry.
The safety of maternity services in England has been under intense scrutiny in recent years, now, a national campaign has been launched for the appointment of a dedicated Maternity Commissioner.
What is the difference between a share sale and an asset sale?
When running a business, company founders and shareholders will inevitably, at one stage or another, want to consider potential succession options, the most prominent being an exit by way of trade sale. Hugo Persad, Trainee Solicitor in our Corporate Team provides an overview of what the difference is between a share sale and an asset sale.
UK GDPR Update: What the Data (Use and Access) Act 2025 Means for Organisations
While several updates under the Data (Use and Access) Act 2025 came into force on 5 February 2026, the next key development for organisations is still to come. From 19 June 2026, organisations will be legally required to implement a formal complaint handling process for data protection matters. This is a significant shift, placing greater emphasis on resolving issues internally before they escalate to the regulator.
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Selling a Probate Property: A Guide for Executors
Acting as an Executor can feel daunting, especially if there is a property which needs to be sold as part of the estate administration process. If you have been appointed as an Executor and you are unsure where to begin, here are some key things to consider.
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Leathes Prior's Personal Injury & Clinical Negligence Team Secure Settlement for Client
Kate Smith (Senior Associate) and Kimberley Nelson (Paralegal) were instructed in relation to a workplace personal injury claim, and successfully secured a five-figure settled for the client.
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New Restrictions to Charitable Giving: What You Need to Know
Changes to UK tax law regarding charitable giving took effect from 6 April 2026. Following legislative amendments in the Finance Act 2025-26, the generous tax exemptions associated with charitable gifts - specifically Inheritance Tax (IHT) exemptions - will be restricted to gifts to UK-registered charities. Ejike Ndaiji, Partner in our Wills, Trusts, & Probate and Charities Team explains...
Employment Rights Act 2026: The New Trade Union Right Of Access - Will it matter?
The Government has now published its response to the “Make Work Pay: Trade Union Right of Access” consultation which means we are now one step closer to properly understanding what these new access rights really will be.
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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.
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.
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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.
