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ACFO calls for AMAP changes

Date: 19 May 2008   |   Author: Tristan Young

Julie Jenner, ACFO chairman

ACFO chairman Julie Jenner has called on the Government to increase the frequency with which HMRC advisory fuel rates are reviewed and to look at AMAP rates because of rapidly rising fuel costs.

Speaking at the close of ACFO's AGM and conference, Jenner said: "ACFO needs to continue to evolve to meet the varying needs of its members and the changes to the UK economy - not least of which has been the very significant increases in fuel costs. If ever there was a time for ACFO members to share best practice in reducing fuel consumption, this is it.

"The sharp increase in fuel costs has made fleet operators more aware than ever of the implications of the vehicles they run and how they run them."

ACFO director Stewart Whyte backed Jenner's call: "We want an effective and fair Advisory Fuel Rate system. We are living in extraordinary times and want to see a responsive system in place that does not leave company car drivers out of pocket.

"The increasing volatility of fuel prices, and the consistent upwards trend, means that it is difficult for drivers, employers and company car drivers to find common ground over fair rates. More frequent reviews will take pressure off corporate HR and expenses departments which often find themselves under very heavy fire from drivers when fuel prices rise and the tax-free reimbursement rates don't immediately fall into line."

Advisory Fuel Rates are the HMRC approved amount employers can reimburse company car drivers for fuel. ACFO believes the current six-monthly reviews of the AFRs are not frequent enough to keep pace with rocketing fuel costs.

Jenner also hit-out at static AMAP rates which have remained unchanged since they were started six years ago.

AMAP rates are the tax-free Authorised Mileage Allowance Payments employers can pay staff using their own cars on company business.

"We have not seen any material changes in this area following several rounds of consultation, but we fully expect further dialogue to take place, as it is our belief that this particular issue still has some 'mileage' in it," said Jenner.