It has been confirmed that the new quarterly review of the advisory electricity rate (AER) of reimbursement will be calculated based on figures published in the Office for National Statistics’ (ONS) quarterly index for domestic electricity.
It is believed the move will enable the rate to better reflect changing prices, with a HMRC spokesperson telling Fleet News: “Using this methodology provides a more up to date guide for employers and employees to calculate what tax needs to be paid for electric car usage.
“HMRC keeps the AER rate under regular review and will be publishing further details on how it calculates the AER rate in due course.”
The current Advisory Fuel Rates (AFR) and AER are published on gov.uk.
