The cost of running a company fleet can be costly, and there are many elements involved in it. One of the most fundamental parts of whole life costs is fuel.
If your employees are driving on company business then most will expect to be recompensated for the fuel costs, even if they are not driving a company vehicle. Some businesses choose to do this through calculating the mileage of the trip and reimbursing drivers for the cost of their fuel for this and other’s pay for the fuel with company funds.
Many companies choose to offer fuel cards as part of their fleet policy. A fuel card is a method of paying for petrol or diesel that allows a business to pay for their drivers’ fuel whilst they are driving for business purposes.
Not only do fuel cards streamline the administration of managing driver fuel needs but they can also save the business money on fuel.
Fuel cards also provide you with the ability to monitor your driver’s fuel usage and analyse MPG figures for each of your vehicles to work out where you are spending the most on fuel and whether this is an area of concern for your business.
If you decide that a fuel car scheme is the right choice for your business then Wessex Fleet can help put a fuel card programme in place and manage the fuel card scheme for you.
We work with a number of fuel card providers so can help you to find the card that’s right for your business’ needs.
As part of our fleet fuel card support we can offer:
- Multi-supply approach
- Assistance in choosing the best providers for you and your drivers
- Improved reporting
- Centralised billing
- Online account information
- MPG analysis for vehicles
Fuel Cards and Tax
Tax on fuel cards can be complicated but we’ve got this guide (LINK) to help you and your drivers understand the implications of using a fuel card. We’re also here to help discuss your options and fleet needs to ensure any fuel card programme you put into place is right for your fleet’s needs.
The simplest way to avoid having to pay taxable benefits to your employees is to allow them to use the fuel card for business purposes.
If the fuel is used for business purposes you can also look at claiming the VAT back any time your drivers fill up for work use.