HMRC publishes revised Advisory Fuel Rates
The figures – which are reviewed on a quarterly basis – are dependent on engine size and provide a tax-free idea as to how much businesses and employees should be reimbursed, for the usage of a company car for either business or private purposes, thus taking into account fuel use and general "wear and tear".
Whilst conventionally powered vehicles are catered for in the figures, newer to market electric vehicles have not yet been accounted for. Talks are currently underway between the Association of Car Fleet Operators and HM Revenue and Customs over the possibility of introducing reimbursement rates for such technology.
ACFO chairman Julie Jenner, said: 'HM Revenue and Customs originally indicated that the AMAP rate would apply. However, that figure bears no reality to either the cost of the fuel or the whole life cost of the vehicle. The tax office must also take into account where vehicles are recharged – at the drivers' home or place of work. @PREVIEWEND@
'ACFO has a close relationship with HM Revenue and Customs and dialogue is continuing with officials over what the reimbursement rates for electric cars should be. Tax officials are undertaking financial modelling to ascertain what a fair pence per mile rate is in respect of both Advisory Fuel Rates and Approved Mileage Allowance Payments,' she added.