Less taxing mileage on offer from finance expert KPMG
12 September 2006
Accountancy giant KPMG, has turned its financial focus to address inequity facing both business drivers and employers alike.
Launching an all-new software package called Net Mileage Plan, the finance specialist is out to tackle the dilemma facing businesses when it comes to drivers opting for cash instead of company cars.
Currently, when a driver opts for the cash, businesses can choose between paying a large fixed sum
and small mileage rate, or a small lump sum with a generous reimbursement rate.
A large fixed rate penalises employees with tax, while offering generous tax-free mileage allowances, has the unsavoury knock-on effect of employees claiming unnecessary business mileage.
KPMG's new software eliminates the financial benefit employee's gain by driving the extra business mile, by reviewing mileage claimed with sophisticated payroll software and adjusting what in the past, would have been the fixed lump sum.
The savings are huge with the tax experts estimating annual savings of £1000 per employee.
Prices start at £40k for a 400-employee fleet.