Fleet News

Tough choices over free fuel provision

MASSIVE increases in the taxation on fuel provided for private mileage has led to tough choices for many fleet drivers on whether to keep the perk - and fleet managers must have all the facts staff need to make the decision.

This year, Chancellor of the Exchequer Gordon Brown increased the Fuel Scale Charge by 40%, twice the expected increase, a move which means some drivers will be paying more in tax than they will receive in free fuel.

The break-even point where it makes financial sense for a company car driver to accept free fuel for private motoring would have to be considered for every fleet driver, Simon Richmond, managing director of ACL autolease, warned.

For many of the 990,000 company car drivers who take free fuel, financial checks would reveal they would benefit from paying for their own fuel.

Richmond said despite the fact free fuel was no longer a perk for many, drivers were ignoring the issue. He said: 'Drivers seem to ignore the problem. However, when drivers do abandon free fuel for private mileage, the company must still keep accurate records of business and private mileage to help with reimbursement of fuel costs during business trips.'

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