Fleet News

Paying drivers mileage is wasting companies’ cash

PUBLIC sector fleets have been warned that they could be wasting thousands of pounds every year by allowing staff to use their own cars for business trips.

Sector fleet specialist Automotive Leasing believes many local authorities and other public bodies are consistently reimbursing their drivers the maximum Approved Mileage Allowance Payment (AMAP) of 40p per mile.

It says a driver who covers 15,000 business miles a year can claim back £6,000.

The company says that this compares to the £3,000 per year the organisation would pay if it put that same employee in an average company car, giving an example of a Volkswagen Golf 1.6 FSI SE, with the figure including insurance, depreciation and maintenance.

It adds that the fuel used for business journeys would cost an additional £1,500, still leaving the public body better off by £1,500 per employee.

Director Lesley Slater said: ‘It’s not about organisations paying lower mileage rates, but about ensuring the most cost-efficient transport schemes.

‘Given the public sector’s focus on best value, it continues to surprise us that so many organisations still allow drivers to use their own cars for business trips. They could be spending tens of thousands of pounds a year that they simply don’t have to.’

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