Withdrawing "free" fuel is win/win, says LeasePlan
Walters told ACFO delegates that an estimated 10-15% of businesses continue to offer employees a fully expensed company car, but both parties would stand to gain if the perceived “benefit” was removed.
He added that fleets that continue to pay for employees’ private as well as business mileage frequently fail to appreciate that they are also paying Class 1A National Insurance on the “perk”, which the Government is taxing on a benefit charge of £21,100 in 2013/14.
‘Those businesses should change the way they fund fuel and they would realise the benefits immediately,’ said Walters, who also urged drivers to “do the maths” to realise that they would in almost every case be financially better off giving up the “perk” and paying for fuel used privately out of their own pocket.
He added: ‘The easy solution for employers is to issue fuel cards to drivers and recharge them for private mileage at the value of the fuel through expenses.’