HMRC’s decision not to recognise electricity as a fuel has been cited by some organisations as a reason for them not to introduce 100% electric vehicles to their fleets. 

However, speaking at a special seminar held by fleet operator association ACFO, Elizabeth Ward-Lewis, personal tax customer, product and process at HMRC, said instead of using Advisory Fuel Rates (AFR) – used by employers to reimburse employees’ business travel in their company cars or for employees to repay the cost of fuel used privately – employers should use the “actual costs” of charging a vehicle. 

Fleets can calculate their own reimbursement mileage rate using manufacturers’ data for miles per kWh and electricity cost data. 

But, she told delegates Approved Mileage Allowance Payments (AMAP) used to reimburse business mileage clocked up by employees in their own vehicle applied to any car or van and were not fuel dependent.