Raising the advisory electric rate (AER) of reimbursement from 5 pence per mile to 8ppm is a positive step by HM Revenue & Customs, according to the BVRLA. Having pushed for the AER to be increased in line with energy prices and for the rate to be regularly reviewed, the association welcomes the introduction of a quarterly review in line with the existing advisory fuel rates (AFR).
Commenting on the announcement, Toby Poston, Director of Corporate Affairs at the BVRLA, said: “Introducing a quarterly review of the AER just like the AFR is a further stage in the normalisation of EVs. Working with our partners at the Association of Fleet Professionals (AFP) the BVRLA has helped to secure two increases in the last 12 months.
“If we are serious about making our road transport network cleaner, we need to reimburse drivers fairly. With fluctuating energy prices now at eyewatering highs, the quarterly review is an essential tool in ensuring that reimbursement rates keep pace. We will continue to work with HMRC to ensure that the AER helps support the zero emission transition.”
Paul Hollick, chair at the AFP, added: “While the outcome achieved on AER isn’t perfect, it creates a much improved situation for many fleets and shows what can be achieved by industry bodies working together. There is more work to do on this topic, especially for those without access to a home chargepoint. We look forward to further collaboration in the future.”
In addition to pushing for the AER to rise and see a regular review introduced, the BVRLA has also been discussing the introduction of multiple AERs with HMRC. Instead of seeing one universal rate, the association would like to see different rates to acknowledge the different vehicle types and use cases.
BVRLA members are encouraged to contact [email protected] with any queries.
See the GOV.UK website for the Advisory fuel rates from 1 December including AER.
