Fleet News

Private travel benefit now less viable

THE breakeven points where it makes financial sense for a company car driver to accept free fuel for private motoring have changed significantly following the Budget. Figures calculated by ACL show that a 40% tax payer with a 1.4-2.0 litre company car would need to drive more than 6,935 private miles in a petrol model and 8,187 miles in a diesel model to benefit from free fuel.

This assumes an average pump price of £3.02 per gallon for petrol and £3.16 for diesel, and fuel consumptions of 34 miles per gallon and 42mpg respectivelyFor a larger car with an engine capacity greater than 2.0 litres, the breakeven point moves to 8,117 private miles for petrol and 9,769 for diesel, assuming a 40% tax payer, and an average fuel consumption of 27mpg for the petrol version and 34mpg for diesel.

Leave a comment for your chance to win £20 of John Lewis vouchers.

Every issue of Fleet News the editor picks his favourite comment from the past two weeks – get involved for your chance to appear in print and win!

Login to comment

Comments

No comments have been made yet.

Compare costs of your company cars

Looking to acquire new vehicles? Check how much they'll cost to run with our Car Running Cost calculator.

What is your BIK car tax liability?

The Fleet News car tax calculator lets you work out tax costs for both employer and employee