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.