Bottom Line Up Front
Octopus has launched an automated system that invoices employers for home‑charging EVs used on business trips, eliminating the need for manual expense claims.
Automated Expensing for EVs – Octopus Fleet’s New Home‑Charging Reimbursement Scheme
Image: Automated Expensing for EVs – Octopus Fleet’s New Home‑Charging Reimbursement Scheme – Performance Comparison and Specifications
Solution Overview (Design & Looks)
How the system works
Drivers simply select “business” or “personal” on a compatible smart charger. When “business” is chosen, the energy cost is credited back to the driver and an invoice is sent to the fleet manager.
The service works with any smart charger that reports usage – you don’t have to be an Octopus customer.
Key features
- Automatic cost allocation between personal and business miles.
- Integration with Octopus Fleet’s expense cards.
- Monthly fee of £9.50 per driver.
- Built with Rightcharge technology.
Cost & Mileage Impact (Performance & Mileage)
Why home charging matters
Home electricity is capped at 27p/kWh, with many suppliers offering 7p/kWh overnight. That works out to roughly 2p per mile for a typical 3.5 mpkWh EV – far cheaper than the 22p per mile you’d pay at public rapid chargers (76p/kWh).
HMRC’s advisory rates (7p per mile for home, 14p for public) don’t reflect these differences, leaving drivers either over‑compensated or out‑of‑pocket.
What the Octopus scheme does
By automatically crediting the exact kilowatt‑hour cost, the scheme aligns reimbursements with real energy prices, keeping drivers and employers compliant with HMRC rules.
Pricing & Market Position (Price & Rivals)
Cost structure
The service is priced at £9.50 per driver each month – a flat fee that covers software, data handling, and support.
Compared with manual expense processing, the scheme can save both time and potential tax penalties.
How it stacks up
Other fleet managers still rely on spreadsheets or third‑party mileage calculators. Octopus offers a “menu” of solutions, including access to the Electroverse network of 1.3 million chargers, expense cards for meals and tolls, and home‑depot solar and battery packs.
| Engine | Mileage | Price | Top Features |
|---|---|---|---|
| Electric (any model) | ≈2p‑22p per mile depending on charger | £9.50/driver / month | Automatic invoicing, real‑time usage data, HMRC‑compliant |
FAQ
What is the cost per mile for home‑charging an EV?
Using Octopus’s overnight rate of 7p/kWh, a typical EV uses about 2p per mile.
Can non‑Octopus customers use the automated expensing system?
Yes, as long as the charger is smart and can report energy usage.
Will the scheme protect my business from HMRC tax penalties?
Because the system records exact kilowatt‑hour consumption, it provides the evidence needed to justify any adjusted mileage rates.
What do you think?
Leave a comment below – we’d love to hear how your fleet handles EV charging expenses.
Source: Read Official News
