Fleet News

Firms launch free fuel tax advisory service

A NEW advisory service is available for employers and company car drivers trying to work out the financial break-even points for giving and receiving free fuel for private motoring. PHH Vehicle Management has joined forces with accountancy firm Deloitte & Touche to develop the AllStar Fleet Fuel Adviser service, which follows the Government's determination to stamp out the provision of free fuel for private miles.

Chancellor of the Exchequer Gordon Brown has pledged increases of 20% year-on-year to the fuel scale charge which is used to calculate an employee's taxable benefit for receiving free fuel for private use. The measure, however, affects employers and company car drivers.

Keith Greenhead, PHH's director of fuel, said: 'AllStar Fleet Fuel Adviser will help companies assess whether it is worthwhile continuing to provide this benefit for each individual employee, and will outline the options which are available.' He warned that the phasing out of free fuel could lead drivers to be 'creative' about their fuel returns because employers would still pay for fuel for business miles.

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