ACCOUNTANTS are warning that the Government seems determined to phase out free fuel for employees' private motoring. Mr Mark Sheen, President of the Bolton Society of Chartered Accountants, makes the claim in comments on the last budget. Where an employer meets any of the cost of company car fuel for private motoring (including home to work motoring) the employee has to pay tax on a scale charge.

Last year the scale for a typical 1600 or 2000 cc car was £1,010.

Mr Sheen said today: "The bad news is that the scale charge has gone up to £1,280, 20 per cent more than the increase in the cost of fuel.

"But the really bad news is that the Chancellor intends to go on increasing it by 20 per cent more than the cost of fuel for each of the next four years."

He went on: "The intention seems to be to stop employers offering this benefit altogether.

"For virtually all employees, it will be far better if employers only pay for fuel used on business journeys and compensate the employee with an increase in pay."

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