Fleet News

Calls for major mileage survey

CALLS have been made for a large-scale survey of the business and private mileages covered by company car drivers before the Government considers introducing a private mileage based tax system. The Government announced in the March Budget that it wanted to abolish the present 2,500 and 18,000 business mile tax breaks and replace them with a company car tax regime taking private miles into account.

Society of Motor Manufacturers and Traders head of policy Paul Everitt believes a private mileage based system would penalise employees for where they lived rather than how much they earned. And, he said, there was no conclusive evidence to suggest that the current taxation system was being flouted by drivers trying to top the 18,000 business mile tax break.

Previous studies have, according to Everitt, looked at the habits of too few drivers. They also tended not to compare the results on a like-for-like basis, for instance with non-company car drivers in the same income brackets and type of career. The Inland Revenue had asked for views on the issue to be submitted by the end of April. A spokesman said these were now being passed on to ministers, who would then make the decision.

The British Vehicle Rental and Leasing Association is already gathering information from its members on the business and private mileages covered by the thousands of vehicles they handle via fleet management arrangements with the intention of passing it on to the Inland Revenue.

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