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GE Capital creates private fuel calculator
Date: 26 August 2015 | Author: Daniel Puddicombe
GE Capital has produced a calculator for fleets that offer private fuel as a benefit.
Built by the company's Key Solutions consultancy arm, it aims to show employers how much it costs to provide private fuel for staff.
According to a recent study by the leasing company - which is in the process of being bought by Arval - 20% tax payers would need to be covering an average of 8000 miles a year and 40% tax payers 16,000 miles a year before they accrued any benefit from private fuel.
"With the national annual average for private miles staying steady at around 10,000 miles, employees are paying more in tax than they receive in benefit," said Richard Cox, UK Key Solutions leader at GE Capital.
"Additionally, there is quite a high cost to actually providing private fuel for the employer," Cox added. "Part of this comes from National Insurance payments on Benefit-In-Kind, part is an administrative cost but also providing private fuel tends to lead to a more cavalier attitude to fuel use and a less frugal approach to identifying the best pump prices."
