Category: Fuel Cards

Not reviewing the service providers your business uses is an easy habit to fall into. When you’re already busy with your day-to-day tasks, checking if you’re getting the best deal from your current provider falls to the bottom of your already lengthy to do last.

But when did you last review your fuel card deal? When you are thinking about your company’s current deal, there are a few things that you need to think about.

How much money can I save?

First and foremost, the big question you should be asking yourself is how much money will this save the business? When buying a product like fuel that has frequent price changes, it’s important to make sure that your supplier is keeping to the deal they promised you.

By comparing deals by fuel card providers, you can compare how your current deal stacks up against other providers. Some providers fix the price of fuel to below that at the pump, while others pass on savings made by sourcing their fuel from competitively priced suppliers, so each provider will present different savings.

Many fuel card accounts also let you generate reports, or download your fuel usage data for custom reporting, so you have all the information you need to analyse expenditure and avoid fuel fraud.

How convenient is my fuel card?

The price you pay at the pump might not necessarily be the only thing you’re concerned about when considering a fuel card. The convenience your card offers you should also play a big part in making a decision.

Each card offers varying coverage throughout the UK, and one may be more suitable than others depending on your business’ needs. For instance, the Allstar One fuel card offers the widest coverage and is targeted at customers who value convenience over price, with access to over 7,600 sites across the UK, including 120 motorway sites, ideal for cars and LCV fleets.

Whereas, the Shell CRT card has access to over 1,000 sites at all Shell-branded service stations, but has fixed weekly prices, with no regional price difference. This card is recommended for HGVs and LCVs and it is ideal for HGVs and LCVs travelling on motorways and main roads.

Comparing the level of convenience your card offers you with other fuel cards that are available is an important part of making a decision when reviewing your business’ current deal. Use our comparison page to find out what coverage is offered by our range of fuel cards.

What other benefits does my current card offer?

Some cards offer a range of benefits that may be useful to you and your business, such as supermarket loyalty points. Purchases made with some fuel cards are eligible for loyalty points such as BPMe, Shell Go+ and Tesco Clubcard. Simply present the appropriate loyalty card when paying for your fuel and the points will be added to your account.

Many cards don’t just offer savings on fuel, but managing servicing, tolls, expenses and much, much more. So, remember to review the added benefits that your current fuel card offers you against that of other providers.

Whether you’re running small business with a single vehicle, or a large national business with a fleet of vehicles, be sure to take the time to review your current fuel card to ensure you’re getting the best deal. You might find that there’s options out there better suited to your business.  To find out more about the range of fuel cards we have available and which ones would work best for your business needs, contact us today and one of our expert team will be happy to help.

Fuel cards are essentially credit cards that are limited to fuel-related payments only. However, fuel cards offer more than just a payment method. The purchase restrictions provide businesses a much safer option compared to credit cards. For further information, check out our piece on the differences between fuel cards and credit cards. Below, we have answers for ‘what can I buy on a fuel card?’:

What can I buy on a fuel card?

Firstly, fuel cards are most recognised to purchase what their named after: fuel. As fuel cards are primarily used by driver’s mid-route, they are a convenient method so drivers don’t have to worry about having a way to pay for fuel with their own money or petty cash.

Secondly, some fuel cards allow you to buy additional items. These can include lubricants and oils, AdBlue, car washes, and other vehicle shop goods. Moreover, some fuel cards can be used to pay for toll road charges. This is a great way to save time and hassle for drivers, and to limit the amount of cash drivers need to carry on their person.

Keeping your finances safe

When using a fuel card, you are limiting any risk of fraudulent transactions. This can prevent any untrusted individuals who may have got hold of your fuel card(s).

Also, fuel cards can be assigned to specific drivers or vehicles, and can be restricted with a daily spend. This can help you monitor your budget and stay in control of your fuel spend.

If you’re interested in discussing fuel card options, you can get in touch with our experts here at Fuel Card Services.

It’s important to understand how employee perks or benefits impact your tax liabilities. That said, we realise this can be a complicated subject.

Fuel cards are a fantastic way to simplify the management of fuel expenses and to save time and money. However, you need to make sure you’re aware of any tax you’ll need to pay.

What is a ‘Benefit in Kind’?

A Benefit in Kind is any benefit received by an employee that is not included in their salary. This includes everything from cash bonuses to company cars, paid parking spaces to providing external childcare. The government will tax these perks.

Are fuel cards a Benefit in Kind?

Use of a fuel card for business purposes is not classed as a taxable benefit and you won’t have to pay tax on a fuel card unless it is used to cover the cost of the fuel for personal travel. Under these circumstance the company is liable to tax charges and the business must pay users’ National Insurance contributions on the value of the fuel being used for personal use.

You can read about the benefits of moving away from fully expensed fuel here, where we discuss the benefits of private mileage and how to calculate if this arrangement is beneficial.

How to minimise your tax liability when using fuel cards

As we’ve mentioned, there are some potential tax implications that users of fuel cards need to be aware of. However, with proper planning, any unnecessary costs can be avoided.

The type of travel by cardholders is key. For example, buying fuel for travel to and from work is classed as personal travel, but paying for fuel to carry out a work delivery is not.

Should an employee use their fuel card for private mileage, this creates a tax burden for both the business and the individual. For the business, VAT can only be reclaimed on fuel expenses for business purposes.

As a result, you must pay VAT on fuel if an individual uses their company fuel card for non-business travel. Similarly, those who use a fuel card for private mileage face a variable fuel benefit charge based on several factors, including the type of fuel and CO2 emissions of their vehicle.

Because of this, you must keep clear records on business and private mileage for all fuel card users. HMRC requires this information to ensure you are meeting your tax liabilities.

Avoid paying unnecessary tax with fuel cards

Simple ways to avoid unnecessary tax are:

• Employees refrain from using fuel cards for personal travel.
• Employees pay back any fuel card expenditure for private use to the business.

Ultimately, it’s your decision as to how your employees use their fuel cards. However, setting out a clear usage policy is important. Make it clear what the allowed behaviours are, and ensure cardholders are sticking to the rules.

At Fuel Card Services, we want you to enjoy fuel card benefits without the headache and cost of unnecessary taxation. A major benefit we offer is the provision of HMRC-approved invoices.

We combine all transactions for cardholders into a single monthly invoice. It saves your finance team the effort of going through expense receipts from staff, while also saving users time and out-of-pocket expenses at the pump.

If you’re interested in the many benefits of fuel cards, you can choose from our wide range of products. We offer all of the biggest brands – Shell, Esso, BP, plus many more. As a result, we’re sure you’ll be able to find the one that’s right for you.