HMRC Issues Wrong Advisory Fuel Rate

Fleet News reports that HMRC has issued an apology after fleets were given the wrong advisory fuel rate (AFR) following a quarterly update.

The new rates, which are published on HMRC’s website, initially showed that the figure for petrol-engined vehicles above 2000cc had fallen by 1p per mile (ppm), from 21ppm to 20ppm, and the rate for LPG vehicles above 2000cc had increased by a penny a mile, from 13ppm to 14ppm.

However, after the new rates had been widely circulated and employers had updated payroll systems ahead of the March 1 change, HMRC amended its figures again. This time it showed that the petrol rate had increased by 1ppm, not fallen as originally stated. The new rate would therefore be 22ppm.

The increase to 14ppm for LPG vehicles above 2000cc remained effective from March 1.

An HMRC spokesman said:

“We had previously published an incorrect figure of 20ppm and apologise for the error.”

However, Debbie Floyde, a director at fleet representative body ACFO and group fleet and risk manager at Bauer Media, told Fleet News:

“Publishing the wrong advisory fuel rate will have caused a major payroll headache for hundreds if not thousands of fleet operators. 

What’s even more frustrating is HMRC didn’t publicise the fact it had made an error, potentially leaving some employers still using the original figure.” 

To err is human, and HMRC has apologised. However, not to draw publicise the error and leave some in the dark is not very "sporting" of HMRC!

Tax does have to be taxing.

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