PHH Vehicle Management has launched a new on-line telephone service to cut down the time it takes to receive fuel cards amid predictions of an upsurge in their use. The FastTrack application service promises customers a wait of just 48 hours between applying for a card and receiving, compared to several weeks using normal channels.

Paul Vanags, PHH market manager for fuel, said: 'I think of the system as being an example of PHH practising what it preaches in terms of cutting down on paperwork and time spent on administration.'

The company has launched the service to meet a predicted growth in the number of fleets using fuel cards if EC proposals on the UK's pay and reclaim rules are changed. Currently UK companies can recover VAT on fuel paid for by employees using their own cash, cheque or credit card, but used for business journeys.

This right is covered in UK tax law, but does not comply with European legislation which insists that companies can only deduct VAT on goods which are supplied directly to the employer, not employee, and where the invoice is made out to the employer. The 'pay and reclaim' system meets neither of these criteria, but fuel cards do.