Fuel and mileage overheads are part and parcel of every automotive operation. So much so that many dealers, OEMs and leasing companies rarely give them much thought.
But with rising fuel prices and challenging scenarios, including WLTP and Brexit running into next year, all overheads are now coming in for close scrutiny as businesses seek to protect profitability.
TMC have launched TMC Automotive, a fuel and mileage management service to address the specific needs of the automotive industry.
TMC provide easy to use tools to accurately record the use of vehicles as well as the business and private mileage driven in each vehicle.
TMC already works with several automotive clients to increase visibility and control over vehicle usage whilst significantly reducing fuel costs. On average, TMC clients save 15.4% off their fuel bills: equivalent to saving 18p per litre on the average pump price of petrol and diesel.
- ‘Company car’ drivers log their business mileage on TMC’s easy to use app or online system.
- TMC audit every business journey. The system checks each journey and flags any anomalies to TMC’s Customer Service team who investigate it further, contacting the driver directly where necessary.
- Every mile is accounted for, ensuring there is no leakage.
- TMC work out any private mileage and can provide payroll files for private fuel deductions where fuel cards are used and business mileage reimbursement where drivers pay and reclaim.
Group 1 Automotive UK, will shortly complete the roll-out of TMC’s mileage capture and fuel card across 52 car dealerships in the UK.
Paul Daynes, Group 1 Automotive’s HR Director, said the business, whose dealership brands include Chandlers, Barons and Beadles, expects to achieve a significant cost saving due to the accuracy and visibility TMC provides over vehicle usage and mileage.
Previously, Group 1 Automotive UK relied on a stand-alone fuel card, while employees recorded journeys in paper log books or spreadsheets. Now each driver has an online TMC account and records the mileage they do in each vehicle via TMC’s easy-to-use app or online system – whether it be test drives, deliveries or private mileage.
Paul Daynes said: “A dealership fleet is a complex operation, with a wide variety of vehicles and journey types, including company cars, demonstrators, test drives, deliveries and transfers. About 20 per cent of our operation had been using TMC’s service for a little over two years and when we were looking to pick best practice around the group, TMC best met our needs.”
“Two features that stood out for us are the mobile app and the support TMC provides to our employees. The app is very attractive. It looks and feels modern and is right for our workforce. The support they provide through their help desk diverts a lot of questions that would otherwise go to our payroll department.”
The fuel card included in the solution is accepted at over 98% of fuel stations. TMC monitor where fuel is bought and encourage drivers to use low-cost supermarket fuel stations to save money.
A complete solution
TMC handle all aspects of fuel and mileage cost management including all driver support.
Compliance. TMC reminds drivers to record their mileage every month to ensure full and accurate mileage records for tax purposes. This not only ensures that staff reimburse the cost of any fuel used privately, it also ensures that tax records are compliant in the event of an HMRC audit.
Reduced administration. TMC Automotive negates the need for log books, spreadsheets and the chore of chasing drivers to find out who had the car when and for what purpose.
Visibility. TMC checks that every penny spent is being used for its correct purpose. The solution ensures fuel cards are used to fill the correct vehicles – it checks whether the number of litres purchased is in line with the fuel tank capacity – and monitors driver usage and behaviour. Reports tailored to each client’s needs clarify how many miles each vehicle has done, and for what reason, alongside a payroll file for private mileage deductions. Knowing who was driving the vehicle at any one time also helps resolve responsibility for traffic offences and parking penalties.
Tax year-end employee reports. TMC can provide reports for employees to make their tax returns and claims easy to handle when using a dealer structured scheme.
TMC can also help businesses move away from ‘free fuel’, a punishing perk that often costs employees more in benefit in kind tax than the cost of the fuel itself. The removal of this ‘benefit’ typically saves employers around £800 per employee per year.
Paul Daynes continued: “The partnership and expertise they offer is fantastic, whether it be around definitions of business mileage, taxation issues or even tweaking their system for us to solve issues that are quite specific to a dealership business, such as how to handle reporting for test drives.”
The flexibility of TMC’s system allows it to accommodate the unique requirements of dealerships, OEMs, leasing businesses and rental companies.
To find out more about how TMC could help your business save time, money and increase visibility over this growing overhead, contact us on 01270 525 218 or via our website www.themilesconsultancy.com.