Fleet News

Firms ignore August VAT changes

MORE than 70% of fleets have not reviewed or changed their company car policies as a result of the August 1, 1995 VAT changes, according to the 1996 Lex Report on Motoring - 'Listening to the needs of Company Motorists'.

Following the move to allow leasing companies to recover VAT on the purchase of vehicles bought for business use, resulting in lower monthly rentals, there was widespread belief that fleets would move from buying vehicles outright to leasing. The report found that 36% of companies had not reviewed their purchasing policy, 35% had decided not to change and a further 6% said they would review this year.

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