How do I claim the Advisory Electricity Rate for fully electric cars?

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  • Updated 4 weeks ago
  • (Edited)
My company now owns, and I drive, an EV.  I can still personally claim expenses on the mileage but this should now be limited to the government "Advisory Electricity Rate" (AER).  That rate is 4p per mile.

Your existing UI for "New Mileage Claim" assumes use of the AMAP (Approved Mileage Allowance Payment), but this is a rate only applicable to Internal Combustion Engines.

I assumed that I can manually calculate the mileage versus the 4p rate and then use the option to just re-bill - but if I do that there is actually nowhere to enter an amount!  I end up with an expense claim of zero - unless I am missing something?

It would be very helpful if you could adjust your UI to deal with the EV owners and this growing use-case that seems not yet to be looked after.

Can you please confirm how I should address this and that you will consider this shortfall, if I am correct?  The government sire that references the AER is here:

I look forward to hearing from you.  Please reply here so that others can benefit too.


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Tony Wheeler

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Posted 4 months ago

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Amina Ahmed

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Hi Tony, 
Thanks for getting in touch.

The mileage rate, which is for business travel in private cars only, is based on the HMRC approved rate which is 45p per mile for the first 10,000 miles and 25p thereafter within the year, please see HMRC travel rates.

FreeAgent also allows for business travel on privately owned motorcycles at 24p and bicycles at 20p per mile.

We use these rates because they maximise the amount of tax relief available to your business without risking any taxable benefit issues.

If you wish to use a different rate, we would recommend working out your mileage manually and entering it using the New Expense button rather than the New Mileage button. You may want to add a new category to track this, but please be aware that you won't be able to name that category simply "Mileage", since FreeAgent uses this automatically for mileage in private cars. You could call it something like "Mileage at Own Rate".

I will however flag this with our product team and hopefully AER rates could be supported in FreeAgent in the future. I cannot guarantee that your suggestion will become a live feature, but I can assure you that it will be reviewed by our Product Team.

I hope this help.

Kind regards,
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Tony Wheeler

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Do you yet have plans to implement a mileage claim capability in FreeAgent for us EV owners?  I have been using my own created category for an expense but you really do need to implement a solution for Electric Vehicles that takes account of the rules.

Could you please provide an update?

I look forward to hearing from you.