Technology helping businesses save money on their company car fleet

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Latest technology helping businesses to save thousands of pounds on their company car fleet management

Media release - 1 June 2015

Switching from paying fuel benefit tax to using a mileage claim system is saving businesses thousands of pounds on their annual vehicle running costs, says ABAX’s UK Quality Manager Chris Miller.

How is time and money being wasted?

Businesses whose employees use a company car have a duty to report it to HM Revenue & Customs (HMRC), particularly if the vehicle is used for both business and personal trips.

When a company pays for an employee’s business and private fuel, commonly known as a fully expensed company car, the driver incurs a taxable charge for the benefit of their fuel being provided to them. The size of the charge is determined by the fuel type and emissions of the company car.

ABAX states this is a disproportionate charge (the same charge will apply if the employee completes 20 or 20,000 private miles) and businesses and their employees wasting money by electing to pay the fuel benefit tax.

Another option is for the employee to compile mileage claims, pay for the cost of their private mileage and therefore avoid collecting the benefit charge. However, manually compiling a mileage claims is time consuming and often an inaccurate record of the distance travelled.

How can time and money be saved?

Switching to GPS-derived digital mileage claim eliminates these pitfalls. ABAX’s electronic Triplog automatically documents all driving via GPS, calculates mileage and distance, keeping businesses in line with HMRC regulations.

Chris Miller, ABAX UK Quality Manager, said: “Keeping a good mileage record can save businesses time and money. When the employee switches to a digital mileage claim system they pay for or make good the cost of their own private fuel and because of this no longer pay the fuel benefit charge. The business isn’t now paying for the private fuel of National Insurance contribution."

For example, an employee earns a salary of £45,000 and drives 5,000 private miles and 15,000 business year each year.

For 2014/15, ABAX states this employee saves £1,344 and the business he works for £885. With a fleet size of 10 this amounts to a business saving of £8,850 annually and employees better off to the sum of over £100 per month.

Case studies:

Kelvin Goulden, from KA Goulden Electrical, a Spalding company which has implemented ABAX’s Triplog, said: “We recovered the first six months of cost of the system in the first eight weeks. The drivers are not using vehicles for private use in the same manner that they were before and the journey times have been cut as the drivers tend to take more direct routes now. Financially this have been very good for us."

Paul Kilby, from Tee-Kay Packaging, a Peterborough business now also using ABAX Triplog, said: “ABAX has given us greater control. Transport is a big cost and you need to stay on top of it. ABAX allow us to do this."

Ends

Notes to editors:

For further information please contact:

Mark Pearson - mpearson@athene-communications.co.uk  or 01733 207333

About ABAX

    • ABAX has a UK office at Warmington, near Peterborough
    • ABAX hit the headlines in November 2014 when Peterborough United announced the company as its major new partner. This five-year deal includes the naming of the club’s ground to ABAX Stadium.