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Reduce the impact of the fuel tax hike

Posted 19 February 2008 at 2:20PM by Ian Betteridge in Email and communications

The first day of April is, of course, April Fool's Day. Perhaps aptly, it's also the time when the government often introduces new or amended taxes - and this year is no exception, as a tax is increased which will directly affect many businesses.

This isn't the much talked-about change to Capital Gains Tax, but instead a straightforward increase in petrol duty. Of course, this has united a wide range of opposition from the AA and Road Haulage Association through to the National Farmers Union. The 2p per litre rise will, the RHA claims, widen the different in the cost of operating a truck in France and the UK to £20,000 a year - bad news for British hauliers.

Despite the opposition from business groups it seems unlikely that the government will change its mind. But one way that businesses can reduce the impact of this fuel tax hike is to try and cut the amount of fuel they use, through using technologies like voice and video conferencing instead of travelling to meetings.

Implementing a flexible working policy can also help, especially if you pay for fuel for employees. For information on how to make flexible working work for your business, see our guide.

Of course, this won't help you cut the cost of fuel used for deliveries to customers - but at least it may help you cut down on less-essential business costs.

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Comments

1. At February 22, 2008 9:34 AM, Vince McMahon wrote:

Yet another tax hike, what will the goverment think of next. It is bad enough that they charge tax at 17.5%, and to take a large chunk out of people's wages per month, they want to take more?

If the goverment was to actually spend the money it takes from us on something worth while, unlike war, I would not pay the taxes, but until that day happens, then I grudge paying them.

2. At February 25, 2008 1:32 PM, Merlin wrote:

Have you ever tried video conferencing a truck load of food or car-sharing two service engineers ? These taxes are hammering the life out of British business, and technology will only help a few.
Prices go up, then they change what goes into the cost idices and tell us that they have not. Lie is spelt S-P-I-N these days.

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