FLEET chiefs must review existing employee travel expense systems in the light of new rules which come into effect on April 6. Leading tax adviser Ernst & Young has welcomed the new Inland Revenue regulations which replace the existing 'triangular' arrangements with a simpler system which puts business travel on to a full cost basis which allows employees to claim the cost of all business travel other than from home to work.

'This new basis is sensible and very welcome,' said Peter Minchinton, automotive group manager at Ernst & Young. Earlier this month the Inland Revenue published a booklet - 'Employee Travel - A Tax and NICs Guide for Employers' - which explains in detail the new tax and NI rules. All employers which have 50 or more employees will receive an advance copy and leaflets for employees - IR161 'Tax Relief for Employees Business Travel' - are also available.

This week Minchinton urged fleet chiefs not to be put off by the 116-page guide. He said: 'That could be a serious mistake. There are a number of areas to which employers should pay urgent attention. They need to review their policy for reimbursing travel and subsistence - do they want to move to a full cost basis? They then need to consider their current dispensation.'