In a positive news for EV drivers, HM Revenue & Customs (HMRC) has slashed the Advisory Electric Rate (AER) to a mere 7 pence per mile, making electric cars even more economical to run. This significant reduction comes into effect from 1^st September 2024.

Going up to 10 pence per mile last year between 1 September 2023 to 30 November 2023, the AER went down to 9 pence per mile from 1 December 2023 to 31 May 2024 and again dropped by a penny to 8 pence per mile from 1 June 2024 until 31 August 2024. The new AER reflects the decreasing cost of electricity compared to traditional fuels, and positively impacts the overall cost of leasing an electric car making electric vehicles more economical to operate.

For businesses and employees using company electric vehicles, this change translates to lower reimbursement rates for business travel, reduced costs for employers providing company EVs and increased attractiveness of EVs for fleet managers and company car users.

This development comes as part of a broader shift in UK motoring, with changes affecting petrol, diesel and electric vehicles. While rates for traditional fuel vehicles have seen minor adjustments, the lower rates and additional drop in AER underscores the government’s commitment to promoting electric mobility.

At ElectriX, we understand the importance of affordability when considering the switch to electric. With the lowered AER, the cost of running an electric car is now remarkably close to petrol and diesel alternatives. This, coupled with the government’s continued push for electric vehicle adoption, makes electric cars a truly attractive option for drivers across the UK.

ElectriX offers a wide range of electric vehicle leasing options to suit your needs and budget. Our flexible lease plans allow you to enjoy the benefits of electric driving without the upfront commitment of buying a car. Additionally, with our focus on customer satisfaction, we ensure a smooth and hassle-free leasing experience.

For more information on ElectriX’s EV leasing options and how you can benefit from the new AER rates, visit our website or contact our dedicated EV specialists today.