The Association of Fleet Professionals and the BVRLA have joined forces to call upon Government to take steps to ensure that the Advisory Electricity Rate (AER) for electric vehicles is fit-for-purpose.
The industry bodies share concerns that the current 4 pence per mile rate, which remains unchanged since 2018, is no longer reflective of real-world conditions, and recommends that the rate be reviewed more regularly, in line with the Advisory Fuel Rates (AFRs).
Advisory Rates are widely used by employers to determine reimbursement rates for employees claiming business mileage, with HMRC publishing updated AFRs quarterly for petrol, diesel and hybrid vehicles. The current AER is no longer fit-for-purpose and has the potential to compromise the uptake of electric vehicles, as employees will not, in many cases, be adequately reimbursed for their business travel costs.
