Fleet News

Rental companies plan £1 per day surcharge to offset taxes

FLEETS face a daily surcharge of almost £1 per day to hire a car, as a result of measures taken by the UK's leading daily rental companies to offset the burden of new taxes. The catalyst for the new charge was the Government's introduction of a £25 vehicle registration fee which came into effect on April 1.

Budget Car & Van Rental, Churchfields, Europcar, Hertz, Kenning Car and Van Rental, National Car Rental, Sixt European Car Rental and Thrifty Car Rental were due to add the fee as a separate item to rental invoices from July 1 while Avis Rent A Car will follow suit from July 15.

They have all arrived at a figure of 95p per day, apart from Hertz which has set a figure of 85p and Churchfields which is charging 92p. The charges have been calculated through an equation involving the registration fee, road fund licence and utilisation rates of 65% to 70%.They are subject to VAT, and generally will only be imposed on 20 or 21 days of a standard 28 day rental period, although Churchfields is charging 92p for the first 27 days of a rental and 60p thereafter.

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