Fleet News

ACFO and Fleet News team up on tax code initiative

At its annual conference last month, ACFO announced that it has teamed up with Fleet News on a joint initiative to tackle the growing issue of incorrect tax codes issued by HM Revenue & Customs to company car drivers.

Investigations by Fleet News this year revealed the issue is rife among company car fleets, costing fleet managers a great deal of time to sort out. As a consequence of receiving an incorrect tax code, company car drivers are either paying too much or insufficient benefit-in-kind tax

ACFO board member Damian James, head of transport at Bracknell Forest Borough Council, told the conference the association would be seeking its members’ views to establish just how widespread the issue is before taking action.

ACFO chairman Julie Jenner said: “Members are telling us that the correct information in terms of benefit-in-kind tax value of the car and the appropriate CO2 emissions figure has been provided to HM Revenue and Customs, but it is their belief that it has been interpreted wrongly.

“We want to get to the root cause of the problem and ascertain the scale of the issue. We will be surveying members in the next few weeks and based on the information that we obtain we will compile a dossier of evidence that we will take to HM Revenue and Customs.”

ACFO directors are already aware of one company car driver who is believed to have overpaid about £3,000 in benefit-in-kind tax, while another driver has received a bill for £1,000 due to an underpayment.

James also reminded delegates that ACFO was playing a key role at the Fleet News’ organised Company Car In Action at Millbrook Proving Ground on June 26-27, where directors will be on hand to offer one-to-one advice and guidance in all matters related to fleet management.

ACFO is planning its next best practice guide, following last year’s successful travel management publication, with options including tyres, accident management and parking fines.

And it is working with the BVRLA and the DVLA to establish how fleet managers will be able to check employees’ driving licences from 2015 when the paper counterpart disappears. The solution is an electronic checking system, but it is not clear how this will work.

James said that ACFO was expecting to grow membership this year, partly on the back of its new marketing group which was set up last year to look at member services and how best to promote the association.


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