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Friday
Mar192010

Petrol Taxes Hit Small UK Limited Companies Hardest

I filled the car with petrol this morning and once again I felt like I was being ripped off. I decided to do a little research when I got into the office. I’ve since found that the UK government are making a small fortune off the petrol that we all buy. This is of course hitting small businesses (and fleet car businesses) hardest.

Recent research by the AA Fuel for Thought has highlighted that British drivers are hardest hit for petrol taxes when compared to other EU countries. Being a small UK limited company can be challenging at the best of times and this news only serves to highlight just how challenging and expensive running a small business can be.

Each time you fill up at the pump, you’re not only paying out to the petrol companies, but you are also funding the government’s fuel duty and VAT on your purchase. In principle it’s a fair method for the government to source some of its income. However, when you consider how much this income has risen since November of last year, it’s time to question whether these are helpful at a time when the economy is so fragile.

Western Europe as a whole has seen fuel duty and VAT rises of 5.07% since November. Any guesses for how much we’ve had here in the UK? More than double that! No, I’m not kidding. We’ve seen an increase of 11.46%. I’d certainly like to see a reduction in the fuel duty on petrol even if only for a short time. Think of the added boost to the struggling economy.

Unfortunately, there’s more bad news on the horizon. The Treasury have hinted at further rises from Easter of this year, to the tune of inflation plus one percent. This equates to approximately an extra 2.5 pence per litre when you’re at the pump.

If you’re worried about the impact of the fuel duties and VAT on petrol costs, talk to one of our St Matthew advisors today. They’ll be able to talk though other areas of your business that you could make savings in. Simply click on the contact button at the top of this screen and take the first step. We’ll help you the rest of the way.

 



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