Fuel card firm reveals new tax year checklist

Date: 17 April 2018   |   Author: Sean Keywood

"Reviewing last year's expenditure and seeing where changes can be made for the next tax year can really benefit the business in the long run, no matter how small the alteration."

The checklist is as follows:

• Spend where it matters - Consider investing any remaining budget at the end of the previous financial year into programmes that offer long-term benefits such as fleet management software or extra safety training for employees.
• Consider changes in company car tax - The diesel BIK surcharge has increased from 3% to 4%, which could be used to encourage employees to select cars with lower CO₂ emissions.
• Introduce CO₂ thresholds - With recent adjustments to capital allowances, businesses could consider introducing set 110g/km CO₂ thresholds. Since April this year, cars operating under a business have to emit less than 110g/km in order for them to deduct the full cost of the lease against taxable corporate profit. Setting thresholds would avoid any cost increases.
• Review and improve - No matter how much planning goes into a company's annual budget, external factors will always impact on the overall expenditure. Business owners should compare the previous year's fuel spend budget with the actual amount spent throughout that year. This will help managers plan accurately for the next year, helping them determine costs the fleet may incur.
• Use a fuel card - This removes the need to keep track of paper receipts and online data allows effective budget management.

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