association
ACFO has had a good year. Following a successful year lobbying
government it finds its membership is flourishing. To top it all,
in November HM
Revenue & Customs (HMRC) announced new rules on when and
how the Advisory Fuel Rates (AFR) for company car drivers are
reviewed and published. Publication of the measures follo
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ws detailed discussions between senior representatives at ACFO and
HMRC.
The AFR 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 provide a range of rates
based on engine size and fuel type, and when used are deemed to be
tax free.
ACFO director Stewart Whyte tells Motor Finance that the
changes came in response to accusations that the old system
frequently left drivers out of pocket – thus effectively
subsidising their employers for each business mile undertaken. “The
new system offers a more responsive arrangement under fluctuating
fuel prices and allows employers to plan and budget more easily,”
he says.
The changes in which they are published will see:
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By GlobalData- one month’s notice given of any change to the mileage
rates - bi-annual reviews of rates taking effect on January 1 and
July 1 each year. Therefore, any rate changes will be posted on the
HMRC website in early December or early June to allow employers
implementation time - rates will be reviewed in the event of a variation in
fuel prices of greater than 5 per cent from the prices used at the
time of the previous review
Whyte adds: “The current volatility of fuel prices means that it is
difficult for drivers, employers and company car drivers to find
common ground over fair rates. The formal diarised review of rates
is a vast improvement on the previous ad hoc arrangement. It’ll
take pressure off corporate human resources and expenses
departments which often find themselves under fire from drivers
when fuel prices and reimbursement rates don’t immediately fall
into line.”
Whyte believes that ACFO’s influence with government lies in its
“grass roots” membership of around 900 company fleets: “We are from
the ‘coal face’, and present a rather different view to government
and we’re honest about the fact that not all our members agree
about every point. It is the collective and often disparate view of
our members that we present to government.”
As an example, Whyte quotes ACFO’s views on Approved Mileage
Allowance Payments (AMAPs) about which the government has come
under some criticism for delaying their update: “Although a
majority of ACFO members would probably press for a downward turn
in AMAPs some would undoubtedly wish to see them increased.
“There are conflicting views and we advise government that one size
does not fit all.”
Not all ACFO’s campaigning has been successful however. “We put up
a strong argument to the Treasury regarding the reform of
Corporation Tax,” Whyte says, “and a case to the Department of
Health regarding the new smoking legislation – but signally
failed.”
Other high-level advisory meetings have been with Professor Julia
King, part 1 of whose King Review of Low-Carbon Cars was published
this October, and meetings with other organisations such as Low
Carbon Vehicle Partnership, DVLA and Transport for London.
