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The Advisory Electricity Rate (AER) for electric company car mileage reimbursement will rise from 5p to 8p per mile from 1 December, HMRC has announced.
The move follows sustained fleet industry campaigning for the rate to be increased.
In addition, HMRC has said that from now on, the rate will be reviewed every three months, on the same schedule as the Advisory Fuel Rates (AFRs) for petrol and diesel cars.
The previous rate can still be used for up to one month from the date the new rate is applied.
Updated AFRs are also due to come in from 1 December, but are yet to be announced.
Reacting to the announcement, Fleet Operations director of consultancy and strategy David Bushnell said: "Today's Treasury announcement that the Advisory Electricity Rate will rise to 8ppm, must also be welcomed, as well as confirmation that from 1 December the AER will be reviewed quarterly in line with AFR's.
"However, these rates assume all charging is done at home, rather than the reality of a mix of home, workplace and public charging. Many drivers who rely purely on using public charging infrastructure are set to still find themselves short-changed."
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