How does HMRC Approved Mileage Allowance Payment (AMAP) work for EVs?

HMRC applies the identical statutory AMAP rate of 45p per mile for the first 10,000 business miles (and 25p thereafter) to all personally owned vehicles, regardless of whether they are petrol, diesel, hybrid, or 100% electric. Because an EV typically costs only 2p to 4p per mile to charge at home, EV drivers keep up to 41p+ per mile in tax-free profit.

Can I claim tax relief if my employer does not pay the full 45p per mile?

Yes. If your employer pays you less than HMRC's approved rates (or nothing at all), you can claim Mileage Allowance Relief (MAR) via Form P87 or your Self Assessment return to receive tax relief at your marginal rate (20%, 40%, or 45%) on the difference.

⚡ HMRC 45P/25P MILEAGE ALLOWANCE & PENCE-PER-MILE RUNNING COSTS

UK EV vs Petrol & HMRC Mileage Calculator

Compare actual pence-per-mile (PPM) running costs between an Electric Vehicle and Petrol/Diesel. Calculate annual home charging fuel savings, and model your HMRC 45p/25p business mileage tax-free profit or P87 tax relief claim.

⚙️ Driving & Vehicle Baselines

Total Annual Mileage 12,000 miles

HMRC Business Miles (for 45p Claim) 8,000 miles

First 10,000 business miles pay 45p/mile tax-free.

Electric Vehicle (EV) Specifications

Efficiency (mi/kWh)

Home Off-Peak (p/kWh)

Charging Location Mix (% Cheap Home Overnight) 85% Home / 15% Public

Petrol / Diesel Comparison

Fuel Economy (MPG)

Fuel Price (£ / Litre)

Employer Mileage Reimbursement

p / mi

Annual EV Fuel Cost Savings SAVE 11.2P / MILE

£1,348 / yr

Driving 12,000 miles in an EV costs £495/year vs £1,843/year in a 42 MPG petrol car.

EV Cost per Mile 4.1p / mi

Petrol Cost per Mile 15.4p / mi

5-Year Fuel Saved £6,740

💼 HMRC Business Mileage Profit Analysis

100% TAX-FREE

EMPLOYER REIMBURSEMENT £3,600 For 8,000 miles @ 45p

ACTUAL ELECTRICITY COST £330 At 4.1p per mile

NET CASH PROFIT IN HAND +£3,270 Tax-Free Income

Because your EV only costs 4.1p/mile to run, claiming the statutory 45p/mile rate provides you with £3,270 of pure tax-free surplus to cover car payments, insurance, and maintenance!

📊 Multi-Year Fuel Expenditure Comparison At Current Mileage

Horizon	Total Mileage	Electric Cost	Petrol Cost	Cumulative Savings

Recent Calculations

No recent calculations.

The Economics of UK EV Running Costs & HMRC Mileage

The true financial advantage of driving an Electric Vehicle in the UK depends heavily on where and when you charge. While public rapid DC chargers (Ionity, BP Pulse, InstaVolt) cost between 75p and 85p per kWh (making EV running costs comparable to a 45 MPG petrol car), overnight home charging on dedicated EV energy tariffs (Octopus Intelligent Go, OVO Charge Anytime, E.ON Next Drive) costs as little as 7p per kWh.

Pence-per-Mile Formula (EV): (Tariff p/kWh) ÷ (Efficiency mi/kWh)
At 7.0p/kWh ÷ 3.5 mi/kWh = 2.0p per mile

Pence-per-Mile Formula (ICE): (Price/Litre × 4.54609) ÷ MPG
At £1.42/L ÷ 42 MPG = 15.4p per mile

Frequently Asked Questions

What is the difference between AMAP and AER for company cars?

AMAP (Approved Mileage Allowance Payments) applies when you drive your own personal vehicle for business journeys (45p for first 10,000 miles; 25p thereafter). AER (Advisory Electricity Rate) applies when driving a company-owned car, where employers can reimburse business electricity tax-free at 9p per mile.

How do I claim tax relief if my company pays 0p mileage?

If your employer pays no business mileage, you can claim tax relief directly from HMRC on the full 45p rate. For 10,000 business miles, that is £4,500 of tax relief. If you are a 40% Higher Rate taxpayer, HMRC will refund you £1,800 in cash via PAYE code adjustment or bank transfer!