ACFO continues push to publish plug-in mileage reimbursement rates

Date: 11 May 2017   |   Author: Daniel Puddicombe

ACFO said the absence of defined reimbursement rates at present puts off some companies wanting to add plug-in vehicles onto their choice lists, as calculating reimbursement rates manually and then getting them approved by HMRC would be a labour-intensive process.

Sample data - including how delegates calculated the figures - submitted to HMRC includes:

• 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.

"Advisory Fuel Rates for plug-in cars are essential. The rates we have provided to HMRC and the details as to how the figures were arrived at are as straightforward to apply as the current simple-to-use system for petrol, diesel and LPG cars (hybrid cars are treated as either petrol or diesel models)," said John Pryor, ACFO chairman. "The figures we have calculated deliver a simple pence-per-mile mechanism that is cost-effective for employers so they are seeing a benefit from the more efficient technology, while employees are being fairly reimbursed for business mileage based on the capabilities of the plug-in vehicle technology."

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