GE calculator shows whether private fuel is a genuine benefit for drivers
A calculator has been created by GE Capital for the “surprising number” of fleets that still offer private fuel as a benefit.
Produced by the company’s Key Solutions fleet consultancy team, it creates a detailed picture of the cost of providing private fuel for employers and whether it is of genuine value to employees.
Richard Cox, UK Key Solutions Leader at GE Capital Fleet Services, said: “We still come across a surprising number of fleets offering private fuel as a benefit – and I say ‘surprising’ because it proves to be of genuine financial value to company car drivers in only very few cases.”
He pointed to a recent study undertaken by GE using the calculator that indicated 20% tax payers would need to be covering an average of around 8,000 miles a year in the car and 40% tax payers double that before they accrued any benefit from private fuel.
He said: “This is a fairly typical picture. 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.
“Additionally, there is quite a high cost to actually providing private fuel for the employer. Part of this comes from NIC 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.
“In this example, there were actually no company car drivers within the company who were gaining any genuine benefit from private fuel but it cost the employer a significant amount. The sensible option was to withdraw it.”
However, Richard added, the picture could be different for company van drivers thanks to a different taxation structure for light commercial vehicles.
He said: “The breakeven point for van drivers will tend to be much lower than for cars. In our example, the average was less than 1,500 miles, so it is quite a worthwhile benefit and potentially withdrawing it is a much more difficult decision.”
Tradeshift: Pioneering eProcurement and Digital Trade
Tradeshift helps transportation and logistics organisations digitally transform their processes. The company offers a suite of services, including spend management, accounts payable and invoice automation, eprocurement, and supplier collaboration through a dedicated B2B supply chain marketplace of more than one million businesses.
As disruption and digitisation continue to accelerate, demand for Tradeshift’s solutions has grown dramatically. The company recently announced the signing of 20 new global enterprise customers since the beginning of its financial year on 1 February, while the number of active businesses transacting on the Tradeshift platform rise by 52 per cent year on year.
Tradeshift Chief Revenue Officer Christope Bodin expects that growth trajectory to continue, as the economy begins to fully reopen and the world works towards recovering from the pandemic. “We are well positioned to support the wholesale digitalisation of business processes,” Bodin said. “For organisations looking to grow in a post-COVID economy, this is fast becoming an organisational standard.”
Tradeshift in Brief
- HQ: San Francisco, USA
- Employees: 800 located in offices in 13 countries
- Customers: 500+ in 190+ countries
- Total on-platform transaction value: $1tn
- Platform: 1.5m companies connected
Key Tradeshift customers: Volvo, Kuehne+Nagel, DHL, Air France-KLM Group
Tradeshift: From $1 to $1 trillion
The company was established with a mission to “connect every company in the world, digitally,” according to Lanng, and followed the trio's earlier product EasyTrade, a pioneering open-source trade platform.
In July 2021, just over a decade since launch, Tradeshift announced passing a new milestone: the cumulative value of transactions processed across its platform passed the $1 trillion threshold. To put that in perspective, Tradeshift said it took two years to reach the $1bn milestone.
Commenting on Tradeshift’s current and future standing, chief executive Christian Lanng said: “We’ve helped a lot of businesses to stay operational and get paid during an extremely volatile period. Every time a business joins our platform it unlocks a whole ecosystem of relationships that we can help to digitise. This sets us apart from the majority of enterprise software providers who remain preoccupied with building connections one at a time.”