New driving laws are set to take effect in December 2024. A strong impact on motorists in the UK, particularly those driving petrol and diesel vehicles. These changes implemented by HM Revenue and Customs (HMRC) include adjustments to Advisory Fuel Rates (AFR) and the introduction of new tachograph requirements for heavy goods vehicles (HGVs). Failure to comply with these regulations could lead to fines as steep as 10,000 euros, making it essential for drivers to stay informed.
Starting December 1, 2024, HMRC has revised the Advisory Fuel Rates for company cars. These rates dictate how much employers can reimburse employees for fuel used during business travel. For the 1400cc engines, it was reduced to 12p per mile; 1401-2000cc engines were reduced to 14p per mile; 2000cc engines were reduced to 23p per mile; and electric vehicles (EVs) remain at 7p per mile.
If employers reimburse employees at rates higher than the AFR, they may incur tax liabilities. This change reflects ongoing efforts by HMRC to align reimbursement rates with fluctuating fuel costs while encouraging the transition toward electric vehicles.
This new fuel reimbursement rate will come into effect on December 31, 2024. All HGVs undertaking international journeys must be retrofitted with a “full” smart tachograph 2 or a “transitional” smart tachograph 2. This requirement aims to enhance tracking and compliance with driving hours regulations.
For the vehicle that operates solely within the UK, existing analogue or digital tachographs can still be used. However, failure to comply with tachograph requirements could result in substantial penalties for operators, potentially reaching 10,000 euros per charger if they don’t meet new standards required for EVs.
Adam Hall, director of energy services at Drax Electric Vehicles, remarked, “These findings highlight both progress and opportunity. Councils are working hard to modernize their EV infrastructure, but barriers continue to exist. Bridging these gaps is essential to not only build confidence in the UK’s EV market but also help make the transition smoother for businesses and fleets that rely on a reliable public charging network.”
Mr Hall also said, “Across the country, the potential financial exposure for the industry is substantial, especially for larger operators with hundreds of charge points to manage.” Only 68,000 public charge points currently in the UK will fail to meet new standards, which could lead to significant fines.
Recent regulatory changes ensure that EV charging stations maintain a reliability rate of at least 99%. New chargers with a power output of 8 kW or more must also support contactless payment options. These advancements are designed to enhance convenience and accessibility for EV users.
The initiative is part of a broader strategy to promote electric vehicle sales and reduce emissions across the UK. The government aims for at least 80% of cars sold by 2030 to be electric, with a complete ban on the sale of diesel and petrol cars by 2035. Car manufacturers that fail to meet these targets will face substantial fines of 15,000 euros per car and 9,000 euros per van if they fall short in 2024.