HMRC confirms review of AFR notice period
11 September 2009
Revenue and Customs has confirmed it is considering scrapping the one-month notice period for changes to the advisory fuel rates (AFRs).
Currently HMRC publishes any changes to the rates that business car drivers can claim for fuel used on company time one month before the 1 January and 1 July change date.
But an HMRC spokesman confirmed: "HMRC is considering a range of options in advance of reviewing the next planned change to Advisory Fuel Rates on 1 January 2010.
"The only option we are considering at the moment concerns our commitment to publish the 1 Jan and 1 July changes a month in advance."
The change would come after recent fluctuating fuel prices have meant announced changes to AFRs could be outdated by the time they took effect.
"If we reduce this notice period we could base the rates on fuel prices nearer the date of the effective dates, and the change in rates would then align more closely to actual fuel prices at the beginning of the period," said the spokesman.