Possible AFR changes could help PHEV drivers
17 January 2017
Author: Daniel Puddicombe
The Association of Car Fleet Operators has announced it will hold a summit to provide data to HMRC, which could lead to the publication of Advisory Fuel Rates for plug-in cars.
ACFO has been campaigning for HMRC to introduce AFRs for plug-ins, and has now been asked to provide information to the Government body.
Rates apply when employers reimburse employees for business travel in their company cars, or require employees to repay the cost of fuel used for private travel, and are based on engine size and fuel type, and are updated four times a year.
It is possible for fleets to calculate rates themselves and get permission from HMRC to use them to reimburse drivers, but it is a lengthy process.
Chaired by ACFO chairman, the summit is set to take place on 10 February.
Those attending include representatives of the British Vehicle and Leasing Association, leasing companies, manufacturers that build plug-in models, and fleet managers that operate ultra-low emission vehicles.
ACFO said it will aim to provide HMRC with calculated figures for plug-in AFRs, as well as a template for calculating future plug-in AFR rates.
"For many years, ACFO has been calling on HMRC to publish official tax-free company car Advisory Fuel Rates for plug-in vehicles. It remains ACFO's belief that the absence of defined mileage reimbursement rates is a handicap to some organisations including plug-in vehicles on their choice lists," said John Pryor, ACFO chairman.