Company car drivers of electric cars will welcome the new Advisory Electric Rate (AER) set by the Government of 8p per mile, a rise of 3p.
The AER has been criticised by fleet managers and industry groups, such as the BVRLA and the Association of Fleet Professionals, for not reflecting the real cost of charging an electric car when out on the road.
The change is effective from 1st December. Furthermore, HMRC says it will review the rates every quarter as it does for diesel and petrol fuelled vehicles.
Commenting, Managing Director of CBVC Vehicle Management, Mike Manners, said:
The increase in the level of the AER is significant, even if 8ppm will not be level all drivers were looking for. Nevertheless, it is a significant rise and the change to quarterly evaluations means electric car drivers will be treated more fairly. My thanks to both business bodies – the BVRLA and AFP – for campaigning on this so strongly.
The new AER rates only apply to fully electric vehicles. Drivers of hybrid and plug-in hybrid cars should use the appropriate rate of either petrol or diesel Advisory Fuel Rates (AFRs).
These have remained at the same rate as those set in September, reflecting the continued high fuel prices at the fuel pumps.
Current fuel prices, according to the RAC, are 188p for diesel and 164p for petrol cars.
The AFRs can be used to claim business mileage in a company car without incurring punitive fuel tax.
HMRC Advisory Fuel Rates
| Diesel: engine size (cc) | Advisory Fuel Rate |
| Up to 1,600cc | 14 pence (-) |
| 1,601cc – 2,000 cc | 17 pence (-) |
| Over 2,000cc | 22 pence (-) |
| Petrol: engine size (cc) | Advisory Fuel Rate |
| Up to 1,400cc | 15 pence (-) |
| 1,401cc – 2,000 cc | 18 pence (-) |
| Over 2,000cc | 27 pence (-) |
Advice and assistance on fuel management
For help with managing fuel costs for your fleet, talk to one of our experts on 01283 351200or email sales@cbvc.co.uk.
