Fleets sign ACFO petition calling for EV mileage reimbursement rates

Fleet operators in charge of almost 120,000 company cars - 97,402 petrol and diesel vehicles and 19,521 plug-in models - have to date signed ACFO’s online petition calling on HM Revenue and Customs (HMRC) to publish Advisory Fuel Rates for plug-in cars.

ACFO believes that the absence of defined mileage reimbursement rates for 100 per cent electric vehicles, range extended electric vehicles, and plug-in hybrid petrol and diesel models is stopping some organisations including plug-in vehicles on their company car choice lists.

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.

ACFO Chairman John Pryor said: “The government has this week published its ‘Road to Zero Strategy’ that puts a significant focus on encouraging demand for plug-in vehicles across the fleet and private sectors to reduce emissions and thus improve air quality.

“It is abundantly clear that the government is driving fleets along the plug-in road, but corporate take-up is not in the fast lane. One reason, ACFO believes, is due to their being no definitive mileage rate.

“ACFO intends to keep up the pressure and hopes that fleet decision-makers and the industry will support the petition. We will submit the petition to HMRC in early autumn in the hope that the government will make an announcement in this year’s November Budget that it will introduce Advisory Fuel rates for plug-in cars.”

The petition is available for signing on the ACFO website - www.acfo.org - and via its LinkedIn and Twitter channels.