Fleet News

£1 billion fiddle claims dismissed

PRESSURE group Transport 2000's anti-company car report which claimed the Treasury was losing £1 billion through fiddles and undertaxing has been blasted by the 1996 Lex Report on Motoring - 'Listening to the needs of Company Motorists'.

Transport 2000's report claimed that because many company car drivers received free fuel they drove more private miles thus increasing pollution, the company car undermined attempts to make public transport more attractive and that the company car was 'a four wheeled perk' (Fleet News November 10, 1995).

However, the Lex report says the average number of business miles driven by company car drivers annually was 14,400, but the number of private miles they drove had dropped in the last year to 5,900 compared with the private motorist who travelled 7,200 private miles a year. And with fleet cars being newer than private cars, the report says company cars are more environmentally friendly with older, privately-owned cars causing much of the pollution.

The report also takes Transport 2000 to task over its 'four wheeled perk claim' and says 74% of company car drivers believe their vehicle is essential for their job, rising to 96% among those who drive more than 20,000 miles each year. According to the report just 7% of drivers see their vehicle as a perk.

Leave a comment for your chance to win £20 of John Lewis vouchers.

Every issue of Fleet News the editor picks his favourite comment from the past two weeks – get involved for your chance to appear in print and win!

Login to comment

Comments

No comments have been made yet.

Compare costs of your company cars

Looking to acquire new vehicles? Check how much they'll cost to run with our Car Running Cost calculator.

What is your BIK car tax liability?

The Fleet News car tax calculator lets you work out tax costs for both employer and employee