Can you claim 55p a mile for an electric car?
Yes, when the electric car is your own. HMRC puts electric and hybrid cars in the same car and van category, so an employee driving their own Tesla for work can receive 55p a mile tax-free for the first 10,000 business miles of 2026/27 and 25p above, and a sole trader can deduct the same rates. A fully electric company car follows the Advisory Electricity Rate: 7p a mile for home charging and 15p for public charging from 1 September 2026.
Which mileage rate applies to your electric car?
The rate depends on who provides the car. A Tesla you own and drive for business qualifies for Approved Mileage Allowance Payments: 55p a mile for the first 10,000 business miles in the tax year and 25p above, from 6 April 2026. If you work for yourself, simplified expenses give the same 55p and 25p. A fully electric car provided by your employer uses the Advisory Electricity Rate, which covers the electricity for business miles. Hybrid company cars use the petrol or diesel advisory fuel rates.
How does 55p a mile work for an electric car you own?
HMRC's Employment Income Manual (EIM31240) places electric and hybrid cars and vans in the car and van kind, and no separate electricity rate exists for a car you own. The 10,000-mile threshold applies per employee and per tax year (6 April to 5 April), with the business miles of all your cars and vans added together. Commuting between home and a permanent workplace is private. Travel to a temporary workplace counts as business. Payments above the approved amount are taxable and go on your P11D. When your employer pays less, Mileage Allowance Relief covers the gap: on 12,000 business miles paid at 45p (£5,400) against an approved £6,000, the relief is £600, saving £120 in tax at 20% or £240 at 40%.
Can a self-employed Tesla driver claim 55p a mile?
Sole traders and partnerships of individuals can deduct 55p a mile for the first 10,000 business miles and 25p above, from 6 April 2026. The flat rate covers the running costs of the car, charging included, so home and public charging cannot be added on top. Parking, tolls and train fares remain claimable. A car that has already received capital allowances cannot switch to the flat rate, and once you use it for a car you keep it while that car stays in the business. Limited companies and partnerships with a company partner cannot use simplified expenses.
What does an employer pay for a company electric car?
From 1 September 2026, the Advisory Electricity Rate is 7p a mile for home charging and 15p a mile for public charging, unchanged since 1 March 2026. HMRC reviews it on 1 March, 1 June, 1 September and 1 December, and employers may keep using the previous rate for up to one month after a change. Mixed home and public charging can be apportioned on a fair and reasonable basis. On 1,000 business miles in October 2026, the tax-free reimbursement is £70 at the home rate or £150 at the public rate. A higher rate per mile stays tax-free only when the employer can show a higher cost per mile.
Does a company Tesla carry a fuel benefit charge?
No. Electricity is not a fuel for the benefit rules, so a fully electric company car carries no car fuel benefit charge. Charging paid by the employer at work, at a home charge point or with a public charge card creates no further benefit. The car itself remains a taxable benefit when it is available for private use: the cash equivalent is 4% of its list price in 2026/27, then 5% in 2027/28, 7% in 2028/29 and 9% in 2029/30, and business mileage does not change that figure.
Which records support an electric car mileage claim?
Approved mileage payments, simplified expenses and the Advisory Electricity Rate are all calculated on business miles, so the claim depends on your log. For every journey, keep the date, the reason, the start and end postcodes and the distance. HMRC asks for the reason and the postcodes when an employee claims Mileage Allowance Relief. Self-employed records must be kept for at least 5 years after the 31 January filing deadline, and VAT records for at least 6 years.
Sources
- EIM31240: statutory mileage rates, kinds of vehicle HMRC
- Expenses and benefits: business travel mileage for employees' own vehicles (rules for tax) GOV.UK (HMRC)
- Increasing mileage rates (policy paper, 17 June 2026) HMRC
- Claim tax relief for your job expenses: vehicles you use for work GOV.UK (HMRC)
- Simplified expenses if you're self-employed (vehicles) GOV.UK (HMRC)
- Advisory fuel rates (Advisory Electricity Rate, updated 21 August 2026) GOV.UK (HMRC)
- EIM23900: car benefit, issues relating to electric cars HMRC
- Work out the appropriate percentage for company car benefits (480: Appendix 2) GOV.UK (HMRC)
- Company car tax: CO2 emissions tables of rates GOV.UK (HMRC)
- Taxation of company cars: appropriate percentage for 2028 to 2029 and 2029 to 2030 HMRC
- Business records if you're self-employed: how long to keep your records GOV.UK
- Record keeping for VAT (VAT Notice 700/21) HMRC
FAQ
Do I get 55p a mile in a company Tesla?+
No. The approved mileage rates apply to a vehicle you own. Business miles in a fully electric company car are reimbursed at the Advisory Electricity Rate, 7p a mile for home charging and 15p for public charging from 1 September 2026.
Can I claim charging costs on top of 55p a mile?+
Self-employed drivers using simplified expenses cannot, because the flat rate covers charging. An employee driving their own electric car receives the approved rate per business mile, and HMRC sets no separate electricity rate for a car the employee owns.
Does a plug-in hybrid get the same mileage rate?+
A hybrid you own earns the same 55p and 25p as any other car. For a hybrid company car, the petrol or diesel advisory fuel rates apply, because the Advisory Electricity Rate covers fully electric cars only.
Odoproof captures each journey from your Tesla with its date, distance and postcodes, so a claim at 55p or at the Advisory Electricity Rate rests on a contemporaneous log. Start your 7-day free trial.
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