solutions
FF02 - Free Fuel Optimiser
At Innovation we have devised a way of buying out free fuel and removing the free fuel benefit in kind for staff so that they no longer receive free fuel and no longer pay any benefit in kind taxes on free fuel. It is a process which ensures that every employee remains in a neutral position but at the same time simulating the benefit of free fuel without it giving rise to a tax liability on the employee.
What does this mean to the company? The company no longer has to account for Class 1A NIC or the VAT scale charge. Additionally, the company saves typically between £1,000 and £2,000 per employee in fuel and other related costs, having risen substantially after April 2008.
It is widely known that providing fully expensed cars to employees has become very tax inefficient for some staff and increasingly less of a perk. High tax costs have driven employees to opt out of the benefit or to companies to buying out free fuel. It is clear that free fuel is very tax inefficient and should be bought out.
But how to you achieve that without ‘upsetting staff’ whilst at the same time maximising the company saving? Innovation project manages the process throughout and ensures a high level of communication to all affected employees; we are there to offer assistance at every stage. Our solution is very Green and totally appreciated by staff, some of whom may actually benefit under FFO2 whilst still generating significant savings for the company.