Employers paying private fuel as a perk could be penalising both themselves and the employee, according to ACFO conference speaker and PricewaterhouseCoopers director Mo Desai.
Desai claimed that staff would have to be doing in excess of 30,000 private miles before the benefit would pay-off for the employer. Below this the business would be better off withdrawing the benefit and reimbursing the employee in different way, such as increased pay.
“For private fuel 30,000 to 35,000 miles is the break-even point for the employer and the break-even for the employee is at about 25,000 miles, so its generally best to buy them out the benefit,” said Desai.
A survey of the 100-strong conference revealed that at least 10% of fleet professionals present still offered the benefit.
