ACFO launches petition for HMRC to publish mileage rates for plug-in cars

ACFO has launched a petition calling on the HMRC to publish defined mileage reimbursement rates for EVs and ULEVs, as the lack of such information is preventing some organisations from putting such cars on its company car fleet.

The organisation has launched the petition on its website - www.acfo.org - and via its LinkedIn and Twitter channels; is planning on collecting signatures at forthcoming industry events - the Fleet Show at Silverstone on 9 May, and Company Car In Action at Millbrook Proving Ground in Bedfordshire on 12-13 June.

Following an ACFO summit last year, the association submitted a raft of data to HMRC that included:

Advisory Fuel Rates for cars with a battery capacity up to 40kWh and above 40kWh - 4p and 5p a mile respectively

Advisory Fuel Rates for plug-in hybrid petrol cars linked to electric mileage range and current engine capacity-based Advisory Fuel Rates for petrol cars - reimbursement rates ranging from 5p to 19p a mile.

Advisory Fuel Rates for plug-in hybrid diesel cars linked to electric mileage range and current engine capacity-based Advisory Fuel Rates for diesel cars - reimbursement rates ranging from 5p to 12p a mile.

Range extended electric vehicles - calculated using above figures based on 90% electric mile range and 10% petrol/diesel mileage range using appropriate Advisory Fuel Rate figure.

Additionally, ACFO provided HMRC with information on how the summit delegates arrived at the pence per mile figures for plug-in cars.

The calculations follow a similar format to that used by HMRC to compile Advisory Fuel rates for petrol, diesel and LPG cars and include: mean battery capacity from manufacturers’ information, weighted by available models and average battery capacity (kWh); electric mileage range adjusted downwards by 15% to take account of real driving conditions and impact on manufacturers’ stated range; average battery recharge cost.

Advisory Fuel Rates for plug-in hybrid petrol and diesel models utilise the current Advisory Fuel Rates bandings based on engine capacity and are adjusted for electric mileage range: the greater the zero emission mileage range of a vehicle the lower the reimbursement rate.

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.

Figures from the Society of Motor Manufacturers and Traders for the first three months of 2018 reveal that registrations of plug-in and hybrid vehicles continue to rise, “albeit modestly”, up 5.1% year-on-year, with demand for plug-in hybrids driving growth, up 18.2% last month.

To sign the petition, visit https://www.surveymonkey.co.uk/r/655XR3P