Fleet News

RAC backs calls for mileage band changes

FLEET manager calls for the current company car mileage tax breaks to be amended to discourage drivers from clocking up 'unnecessary' journeys in pursuit of lower tax bills have been backed by the RAC.

In its Budget submission the RAC backed fleet managers saying: 'We remain concerned about the incentive which the current 18,000 mile threshold provides for drivers to travel further. Whilst we understand the rationale behind the 'break points', the introduction of two additional points at, say, 9,000 and 15,000 miles per annum would lessen the incentive to raise mileage. Such a change should be made on a revenue-neutral basis.'

Fleet managers spoken to by Fleet News universally agreed that the mileage tax bands needed reform to both simplify the administrative process and remove the incentive to increase business mileage to gain tax breaks.

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