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<p>The Government introduced the Advisory Electric Rate (AER) in 2018. It applies
to employees who use a fully electric vehicle as a company car.</p><p> </p><p>The
Advisory Electric Rate (AER) was changed in December 2021 from 4 pence per mile (ppm)
to 5ppm. This was calculated using published consumption rates, adjusted to reflect
real driving conditions, and the average cost of electricity.</p><p> </p><p>However,
employers are not required to use the AER. Instead, they can use different rates to
reflect their employee’s circumstances. Provided they show that the bespoke rates
do not result in a profit for the employee, there will be no tax to pay.</p><p> </p><p>The
Government keeps this policy under review.</p>
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