LEADING fleets do not support a switch in company car tax breaks from business to private mileage, according to research by one of the country's top accountancy firms. KPMG surveyed 25 blue chip companies, each running an average of 1,000 company cars, for their views on alternative benefit-in-kind tax arrangements, and found a distinct lack of support for any system based on private mileage.

The investigation follows Chancellor of the Exchequer Gordon Brown's announcement that the Treasury was investigating a change to the basis of company car tax which would incentivise lower private mileage, rather than the current regime based on business mileage with tax breaks at 2,500 and 18,000 miles. Leslie Farrar, KMPG employee issues tax partner, said: 'It appears from our client research that companies would prefer fine-tuning the current system rather than hammering private mileage, which unfairly hits those outside the cities and with long journeys.'

She said fleets' most popular option would be the continuation of the present system, but without a discount for business mileage. As a result, the 35% scale charge could be reduced to ensure the new system proved revenue neutral.