HMRC to introduce Advisory Fuel Rate for pure electric cars

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HMRC has bowed to campaigning from ACFO and will introduce an Advisory Fuel Rate (AFR) for 100% electric cars from September 1 at 4p per mile.

It will be published alongside AFR’s for petrol, diesel and LPG (liquefied petroleum gas) cars based on engine size. 

Plug-in hybrid and hybrid cars will continue to be treated as either petrol or diesel models for mileage reimbursement purposes.

AFR’s apply where employers reimburse employees for business travel in their company cars, or require employees to repay the cost of fuel used for private travel. They are deemed to be tax and National Insurance-free. AFR’s are reviewed quarterly and similarly, the new Advisory Electricity Rate will be kept under review.

For many years, ACFO has been calling on HMRC to publish official tax-free company car AFR’s for plug-in vehicles. It has been ACFO’s belief that the absence of defined mileage reimbursement rates was a handicap to some organisations including plug-in vehicles on their choice lists.

However, while delighted that HMRC has listened to the voice of the organisation and its members and introduced an AFR for 100% electric cars at the rate it recommended, ACFO chairman John Pryor, said: “We are disappointed that HMRC has not supported ACFO’s call for Advisory Electricity Rates to be introduced for plug-in hybrid petrol and diesel cars and range extended electric vehicles. Therefore, we will keep up the pressure on HMRC to introduce Rates for those vehicles.”

Many businesses unaware of Clean Air Zones, says BVRLA

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Around half of small and medium size businesses are unaware that Clean Air Zones will start to be implemented in towns and cities across the UK as early as next year, according to a survey by one of Jaama’s industry associate members – The BVRLA.

A third of those asked were unaware that the Clean Air Zones were likely to involve charges for all but the most modern and least polluting diesel vehicles. 

In some cities charges will be as much as £100 per day for an HGV, £12.50 per day for other vehicles such as cars and vans.

Leeds, Derby, Nottingham, Southampton and Birmingham have already been mandated to bring in operational CAZs by 2020 and 33 more considering what approach to take as part of their strategy to improve air quality. 

BVRLA chief executive Gerry Keaney, said: "Unless more is done to publicise the impact of these various CAZs and mitigate their impact, hundreds of thousands of businesses across the country will be hit with a new regional road transport tax that will bring additional cost and confusion at a time when firms are already dealing with Brexit-related economic uncertainty."

DVLA urges drivers to take number plate eyesight test

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Drivers are being encouraged to take the 'number plate test’ by the DVLA, as a quick and easy way to check they meet the minimum eyesight requirements for driving. 

By law, all drivers must meet the minimum eyesight standards at all times when driving - this includes being able to read a number plate from 20 metres.

The DVLA 'EYE 735T' campaign is reminding the public that they can easily check their eyesight by taking the 20 metres test and is pointing out some ways to quickly identify 20 metres at the roadside. 

It is advising that five car lengths or eight parking bays can be an easy way to measure the distance.

The campaign is also encouraging anyone with concerns about their eyesight to visit their optician or optometrist for an eye test.