Fleet News

Fleets welcome tax U-turn but say 'wasted miles' need cutting

FLEET managers have welcomed the Government's U-turn over plans to introduce a company car tax system based on private mileage, branding the initiative unworkable and ill-thought-out - but 'green' groups have attacked the move. Nevertheless, fleets say work needs to be done to discourage fleet car users from clocking up so-called 'wasted miles' to qualify for larger tax breaks to counter abuse of the current business miles-based system, which offers cuts in tax once a driver covers 2,500 and 18,000 miles.

Fleet NewsNet revealed last week that the scheme to tax private mileage had been abandoned amid concern that it would encourage use of privately-owned, less environmentally-friendly cars and a significant increase in the administrative burden facing businesses and company car drivers. Roy McCrudden, fleet engineer for Argos, said: 'I feel it is good news that the Government has dropped its plans. The thinking was flawed and would have been difficult to police.'

Paul Holmes, fleet manager of British Gas Services called for fleet managers to take a more active role in making sure drivers used their vehicles only for essential journeys. Stewart Gilham, fleet manager of The More Group, said: 'There is a problem with the current system. There should be more banding and the upper limit should be raised so only true high-mileage drivers could reach it.'

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