Fleet News

Driver tax warning on solus badge fleet deals

FLEETS are being warned against putting company car drivers at a tax disadvantage by choosing solus or dual-badge deals.

Godfrey Davis (Contract Hire) has voiced concerns that companies focusing solely on the 'bottom line' and negotiating the lowest price by choosing just one or two manufacturers could be forcing drivers to pay more tax under the new emissions-based tax system. Although drivers would not be affected under the current mileage-based system, if a manufacturer's cars had a poor emissions profile, they could be affected from April 2002.

GDCH managing director John Lyons said: 'A restricted list built up around a range of poor CO2 performers gives drivers little opportunity to change to more tax-efficient cars.

'Employers have to be mindful of this and, where necessary, review fleet make-up to help drivers paying unnecessary tax. While a freer choice policy might have financial implications, one should never fail to look at the bigger picture - including losing the services of valued but disgruntled employees and the subsequent cost of replacement.'

GDCH marketing director Nigel Underdown added: 'It isn't difficult to make the right decision if you do your homework, and you have to balance budget needs with HR needs. But it can be quite dangerous if companies fail to consider this issue.'

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