Currently, the mileage rate stands at 9p per mile; this is known as the Advisory Electric Rate (AER) and as the name suggests, this is not a mandatory rate for employers to use when reimbursing employees for driving a company-owned EV.
Electric fleet managers can set their own rates too, but they must provide HMRC with evidence of each charge including location, duration and the kWh, otherwise, both the employee and employer will have BIK tax to pay on the difference.
However, many believe the AER and employer set rates are simply not fit for purpose as they don’t reflect the real-world cost of running an EV.
Drivers will typically charge their EV at home, each with a different energy supplier, therefore every driver will have a different tariff rate. This means that the AER or a business-set rate will leave some drivers short-changed.
Luckily though, Allstar have a solution, Allstar Homecharge.
Accurate payments are made directly to each driver's home energy supplier for the cost of charging their company EV at home, and because of this, no BIK tax is needed*.
Drivers’ tariffs and energy suppliers are monitored to ensure the accurate amount is always paid. The businesses then receive just one monthly invoice which covers their entire fleet’s charges.
*In order to comply with HMRC Vehicle Fuel benefit businesses may require a process to identify and reclaim payments for private use.