Fleet News

Government crackdown on company car benefits

THE Government is continuing its crackdown on the benefit enjoyed by company car drivers who receive free fuel for private mileage.

The taxable benefit of fuel for private use is calculated separately from the tax on company cars, and is based on fixed Fuel Scale Charges, depending on the engine size of the company car. Chancellor of the Exchequer Gordon Brown has continued last year's pledge to increase the charges by 20% each year for four years, over and above the usual increase in pump prices (including fuel duty).

In real terms this equates to a rise of 30% year-on-year, enough to tax the full cost of free fuel at the equivalent pump price.

  • For your free ACL guide to how this Budget affects company cars - published in conjunction with Deloitte & Touche - click here.

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