TMC has published an updated version of its guide to
reimbursing drivers of company-run or ‘grey fleet’ electric and plug-in hybrid
The company works with employers across Europe to deliver
visibility, control and cost savings across all their fleet and travel
Its advice on reimbursing drivers of wholly-electric
vehicles includes the new Advisory Electric Rate (AER) for electric vehicles of
4p per mile, announced by HMRC in September.
TMC expects the guide to be of particular interest to fleets
running plug-in hybrid cars (PHEVs), following the recent BBC News story – ‘Government-subsidised plug-in cars may never have
been charged’ - where TMC real-world MPG data revealed that many plug-in hybrid
vehicles actually cost more in fuel pence-per-mile than typical diesel or
petrol company cars due to drivers not charging them.
Paul Hollick, managing director of TMC, said: “While the
Advisory Electric Rate (AER) for electric vehicles satisfied calls for a simple
reimbursement rate for company car and cash allowance drivers of pure electric
vehicles, the extreme variability of plug-in hybrid vehicles’ fuel consumption
sets them apart from both electric and combustion vehicles.
“Employers have the option of applying the appropriate
Advisory Fuel Rates for petrol or diesel to plug-in hybrid electric vehicles. But
with plug-in hybrid electric vehicles’ fuel use varying by up to 300 MPG
depending on the drivers’ journeys and charging practice, reimbursing for
plug-in hybrid vehicle fuel at a flat rate will rarely be realistic or fair.
“There are alternatives to advisory fuel and electric rates,
of course. With every type of drivetrain there is the option to reimburse fuel
at actual cost (calculated from mileage and fuel purchase data). Or employers
can set their own fuel rates, provided they are no higher than the relevant
Advisory Fuel Rate, or can be substantiated if they are.
“In the meantime, the key point for businesses to keep in
mind is that plug-in hybrid vehicles offer a valuable bridge between combustion
and fully-electric vehicles. Used correctly, plug-in hybrid vehicles can
deliver significant real-word operating cost savings.
“Our guide describes how to capture those savings by paying
rates that fairly reflect plug-in hybrid vehicles’ real-world cost-per-mile
potential, using methods that fully comply with the rules on fuel
TMC’s guide also contains advice on settling claims for
business mileage incurred by private plug-in owners, describing how fleets can
calculate the correct adjustments to Approved Mileage Allowance Payments. It also
covers deductions for private use for fuel card users.