If your small business operates a fleet of vehicles, the cost of fuel may be one of your biggest recurring expenses. With prices consistently on the rise, this eats straight into your margins. But there is a simple way to cut that expense: setting up a business fuel card account.
Fuel cards offer cost savings to your business
- Many schemes allow you to pay weekly fixed wholesale rates for diesel and petrol, which is consistently 2-3p cheaper per-liter than pump prices
- You’ll also save by avoiding fill-ups at expensive motorway stations
- Some cards allow you to limit purchases to fuel which cuts wasteful spending
- UK fuel card providers offer reward schemes in which you collect points to trade for fuel discounts
As well as administrative benefits
- Online invoicing and regularly scheduled fuel payments make financial planning easier
- Drivers no longer need to carry cash or company credit cards to fill up
- Administrators no longer need to pester drivers for receipts
- Spending restrictions reduce the risks of fraudulent driver’s claims
- Interest-free credit options with most fuel cards sooth short-term cash flow problems
- Most cards offer fuel consumption tracking reports, enabling you to pinpoint where fuel is being wasted
And help small businesses recover precious VAT
One-quarter of all UK business mileage claims are not backed by valid receipts. In such cases, your company loses the 20% business fuel VAT you should be claiming back. What a waste!
Business fuel cards change that instantly. All fuel transactions are listed on an invoice which is sent directly to your company. Your finance department receives HMRC-approved VAT receipts. And you get reimbursed for 100 percent of business fuel VAT.