Fleet News

Mileage rates frozen for third year

THE Inland Revenue has frozen Fixed Profit Car Scheme mileage rates for the third year running, it was announced this week. The authorised mileage rates - the maximum tax-free reimbursement for employees using their own cars on company business - for 1999/2000 are unchanged from both 1997/98 and the current financial year.

With the Government committed to increasing duty on fuel by 6% above inflation in each Budget coupled with an annual inflation rate of 3.1% and falling residual values the real cost to drivers of using their own cars for business is dramatically increasing. The pence per mile rates are based on a proportion of the routine costs - depreciation, servicing, insurance and road tax - and all running costs - such as fuel - attributable to the business miles travelled.

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