HMRC set to review advisory fuel rates
HMRC will review the Advisory Fuel Rate (AFR) schedule "shortly", with the new rates applicable for all business journeys on and after 1 March.
The revision comes in light of the recent hikes in fuel prices, as HMRC confirms in a recent announcement:
"In light of the recent level of increases in UK average fuel pump prices since 1 December 2010, HM Revenue & Customs will be publishing new advisory fuel rates shortly. These will take effect from 1 March."
Fleet manager’s trade association ACFO has heavily criticised the rates - paid to company car drivers to reimburse fuel used on work business - for being severely out of date and leaving drivers out of pocket.
In her initial response to the news, ACFO chairman Julie Jenner identified that the work done by ACFO over an extended period has been highly significant in ensuring that the "official rates" will bear a closer relationship to the actual costs being incurred by many employees while driving on employer's business.
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Think More Laterally
Shouldn't the 40p per mile rate be adjusted upwards too? Others will know better than me how much of the 40p related to fuel costs at the time it was set, and that portion certainly won't have gone down!
RPI / CPI
Why can't these just be indexed linked to some suitable measure, either on petrol prices or a consumer index.