New Forest

20/08/2018

Advisory fuel rate for ‘pure’ electric cars

HMRC has announced the introduction of an advisory fuel rate (AFR) for 100% electric cars from September 1 at 4p per mile.

The Advisory Electricity Rate (AER) will be available alongside current AFRs for petrol, diesel and LPG cars when the next AFRs are published. For mileage reimbursement, hybrid and plug-in hybrid cars will continue to be treated as either petrol or diesel models.

Employers can use advisory fuel rates to reimburse company car drivers for business fuel. They can also be used if employees are required to repay the cost of fuel used for private travel. AFRs are deemed tax and National Insurance-free and are reviewed quarterly. According to fleet representative organisation ACFO, the new AER will be kept under review in the same way.

For further information on the advisory fuel rates for electric cars, please contact Alan Rolfe on 023 8046 1235.

Latest Tweets

The 130% super-deduction for equipment runs for one more year for companies that invest in new plant and machinery when the expenditure is incurred between 1 April 2021 and 31 March 2023.

Click the link to read more 👉 https://bit.ly/3lnq7B8

If you need help with submitting forms P11D and P11D(b) online, HMRC have a free webinar about how to send the forms using HMRC's PAYE online service.

Click the link to register and watch the recorded webinar 👉 https://bit.ly/3yH1fw4

Let’s Talk

Why not arrange a FREE consultation and find out what we can do for your business.