Electric vehicle reimbursement rate cut from June

The HMRC has published new Advisory Fuel Rates (AFRs) which include a 1 pence per mile (ppm) cut to the Advisory Electricity Rate (AER), making it 8ppm from 1 June.

The reimbursement rate is used by many electric company car drivers claiming back charging costs from their employer, and many fleets already say that the mileage rate does not adequately reflect the true cost of charging.

There have been changes to AFRs to other fuel types too. The new AFRs for diesel company cars have all increased by 1ppm due to higher pump prices used by HMRC to determine the rates.

A diesel company car with an engine size of more than 2,000cc rises from 19-20ppm, while the new AFR for a diesel vehicle with an engine from 1,601-2,000cc increases from 14-15ppm.

Diesel cars up to 1,600cc have increased to 13ppm, up from 12ppm.

The AFR for petrol vehicles up to 1,400cc rises from 13 to 14ppm, and petrol vehicles in the 1,401-2,000cc bracket rise from 15 to 16ppm.

For vehicles with a petrol engine over 2,000cc, the AFR has been increased by 2ppm, from 24-26ppm.

The rates for LPG vehicles, meanwhile, have remained unchanged.