Lyreco is a worldwide distributor of workplace products, active in 27 countries and five continents. Lyreco UK and Ireland operates around 550 cars, which are driven by salespeople located throughout the mainland and Northern Ireland.
Lyreco had been using TMC’s mileage capture and audit service, Mileage+ for a few months when they decided to move away from offering drivers fully expensed fuel. Using the mileage data captured. TMC were able to run a personal illustration for each driver to show them how their tax would be affected with the withdrawal of fully expensed private fuel.
TMC’s data showed that over 90 per cent of the drivers would be better off by paying for fuel used for private mileage rather than paying BIK tax on free fuel.
Lyreco were keen to keep their fuel cards, so TMC provide a monthly payroll file for private mileage deductions. Drivers simply pay for all fuel using their fuel card, record their business mileage using TMC’s app or online system, and provide their odometer reading at the end of each month. TMC then calculate the private mileage and deduction needed.
The data also highlighted the minority who would be worse off due to their high proportion of private mileage. Lyreco’s intention was that no driver would be worse off under the new scheme. TMC advised Lyreco what was needed to ensure that these drivers were properly compensated for their loss of benefit.
The mileage capture and private mileage reimbursement scheme has proven to be very much a win-win for both Lyreco and its drivers – the total annual saving from the project runs into six figures.
”TMC made the whole process seamless and easy for us from start to finish and the project has been a huge success.
Duane Fullwood, Financial Director, Lyreco.
To find out more about how we could make savings for you, please don’t hesitate to contact us.