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HMRC clarifies mileage reimbursement rates for electric cars on fleets

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. 

Natalie Middleton

Natalie has worked as a fleet journalist for 14 years, previously as assistant editor on the former Company Car magazine before joining Fleet World in 2006. Prior to this, she worked on a range of B2B titles, including Insurance Age and Insurance Day. Natalie works across the magazine portfolio and updates the company websites with daily news, interviews and road test content.

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