Fleet News

Fleet News Healthchecks: New car tax system provides ideal chance for a total fleet review

WITH fleet issues high on corporate agendas as the start date for the new company car tax system looms ever larger, a leading fleet expert is advising employers to carry out a fundamental review of the rationale behind providing staff with a company car. Adrian Stevenson, a benefits specialist and member of KPMG's CarWise group, believes many organisations have not gone far enough in their fleet reviews while preparing for the new benefit in kind tax system .

Some fleets, for example, may operate vehicles on a four year operating cycle, yet the average company car driving employee only stays at the business for three years. This creates the danger of substantial early termination fees and excessive depreciation, unless the company can reallocate the car, and is just one example of how legacy fleet strategies may have failed to keep pace with corporate business requirements.

'Go back to a blank sheet of paper, write down why you provide company cars, and see if your current policy meets those corporate objectives,' said Stevenson.

'You will have to make changes somewhere.'

Speaking at the Fleet News Healthcheck, sponsored by AA Business Services and Interleasing, he warned that too many fleet policies are based on a one-size-fits-all strategy, when they need to be sufficiently flexible to meet business and driver needs today and in the future.

As an example of the complexity of a comprehensive fleet review, Stevenson cited KPMG's own cash-for-car calculating software that assesses 30 different variables before deciding whether a driver or employer is better off switching from a traditionally funded company car to a car funded by a cash allowance.

Leave a comment for your chance to win £20 of John Lewis vouchers.

Every issue of Fleet News the editor picks his favourite comment from the past two weeks – get involved for your chance to appear in print and win!

Login to comment

Comments

No comments have been made yet.

Compare costs of your company cars

Looking to acquire new vehicles? Check how much they'll cost to run with our Car Running Cost calculator.

What is your BIK car tax liability?

The Fleet News car tax calculator lets you work out tax costs for both employer and employee