Fleet News

New TMC guide explains business mileage payments for EVs and plug-in hybrids

With no official fuel expense rates for electric cars, TMC has published advice on reimbursing drivers of company-run or ‘grey fleet’ electric and plug-in hybrid cars (PHEVs).

The guide shows how fleets can calculate their own rates for EVs and PHEVs, and apply them in place of HMRC’s Advisory Fuel Rates or Approved Mileage Allowance Payments, which currently only cover petrol and diesel vehicles.

“We want to help business to capture EVs’ and hybrids’ fuel cost savings by applying rates that fairly reflect their real-world cost-per-mile potential,” said Paul Hollick, managing director of TMC.

The guide also covers business mileage incurred by private plug-in owners, describing how fleets can calculate the correct adjustments to AMAPs.

“Uncertainty around reimbursing for electric and hybrid mileage is undoubtedly holding back fleets’ adoption of ultra-low emission vehicles, which is a pity, given their fuel cost and tax advantages and immunity from future air quality legislation,” said Hollick, who is also chair of the Institute of Car Fleet Management (ICFM).

“We hope our advice will give companies the confidence to move forward with ULEVs rather than waiting for the day when, or perhaps if, HMRC respond with AFRs for plug-ins and plug-in hybrids.”

The guide comes in the wake of fleet representative body ACFO calling on HMRC to publish official mileage reimbursement rates for plug-in vehicles.

It says company car drivers should be paid from 4 pence per mile (ppm) for pure electric vehicles (EVs) and 5ppm for plug-in hybrids.

The figures for 100% electric vehicles (EVs), range-extended EVs, and plug-in hybrid petrol and diesel models have been submitted to HMRC after ACFO hosted a fleet industry summit. 

Fleets and drivers can download the TMC guide, by clicking here or by emailing reply@themilesconsultancy.co.uk

Click here for electric cars and hybrids best practice and procurement insight

Leave a comment for your chance to win £20 of John Lewis vouchers.

Every issue of Fleet News the editor picks his favourite comment from the past two weeks – get involved for your chance to appear in print and win!

Login to comment

Comments

No comments have been made yet.

Compare costs of your company cars

Looking to acquire new vehicles? Check how much they'll cost to run with our Car Running Cost calculator.

What is your BIK car tax liability?

The Fleet News car tax calculator lets you work out tax costs for both employer and employee