Fleet News

Fleet chiefs face a real challenge

FLEET managers' worlds have been 'turned upside down' by changes being imposed on them by Government. The Association of Car Fleet Operators' southern meeting heard from its chairman Sue Tonks, fleet manager of the Royal Society for the Prevention of Cruelty to Animals, that new CO2-based taxes and future issues facing fleet managers were a real challenge.

She said: 'The tax changes have turned my whole world upside down, because now you not only need to look at wholelife costs, but also at the fleet driver's tax bill when choosing a car.' And amid predictions of a growth in personal leasing schemes, fleet consultant Robert Constant warned that fleets must look carefully at how the schemes are operated to avoid falling foul of the Inland Revenue.

His comments, backed by PHH national sales manager Jeremy Davis, come after a shock tax demand from the Inland Revenue forced two of the UK's largest employers to change their staff motoring schemes. British Aerospace and GEC, which had a total of 6,000 drivers on the scheme, were told that because ownership of vehicles had not passed to drivers in the schemes, they were liable for benefit-in-kind tax.

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