Fleet News

Footwear firm's fleet faces axe over CO2 tax fears

THE seismic effect of Government plans for carbon dioxide-based company car tax on high mileage fleets could see footwear manufacturer Stylo scrap its 110-vehicle fleet because of the new system. The firm is working with drivers to save them from tax bills which could increase by more than £10,000 over a car's three-year life by offering drivers cash-for-car schemes instead.

Fears have been raised about the unfair effect the tax will have on high mileage drivers. Jon Walden, managing director of Lex Vehicle Leasing, has launched a campaign for the Government to introduce a mileage-based tax threshold for drivers to save them from rocketing bills. He said: 'We are trying to come up with proposals involving a mileage allowance. This is not a return to mileage bands, but maybe a graduated discount or allowance for drivers covering high mileages.'

Stylo has signed up blacki to manage its fleet and help guide it through the minefield of calculations needed to decide how the fleet will be structured in the future. Peter Gee, director of Stylo, said: 'When cars come up for renewal, we will examine what will happen to drivers if they stay in a company car. If it is borderline, we will continue to offer them one, but we have some drivers clocking up to 35,000 miles a year and by moving to a cash-for-car scheme, some drivers could save between £10,000 and £12,000 over a three-year period.'

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