Calls for plug-in car advisory fuel rates to be published

Fleet representative body ACFO has called on HM Revenue and Customs (HRMC) to publish advisory fuel rates for plug-in cars.

This comes after ACFO provided them with real world mileage reimbursement figures.

The figures were for 100 per cent electric vehicles, range extended electric vehicles, and plug-in hybrid petrol and diesel models which were submitted to HMRC following a fleet industry summit.

Advisory fuel rates apply where employers reimburse employees for business travel in their company cars, or require employees to repay the cost of fuel used for private travel.

Published quarterly, they provide a range of rates based on engine size and fuel type (petrol, diesel or LPG), and when used, are deemed to be tax-free.

For many years, ACFO has been calling on HMRC to publish official tax-free company car advisory fuel rates for plug-in vehicles.

ACFO chairman John Pryor, who chaired the industry summit, said: “ACFO acknowledges that it is possible for businesses to calculate rates themselves and then obtain permission from HMRC to use them to reimburse drivers.

“However, it can be extremely time consuming and difficult to obtain all the relevant data to undertake those calculations. Far better for HMRC to publish official figures as it does for petrol, diesel and LPG cars.”