INTERNATIONAL aid charity Oxfam is switching drivers to Euro IV-compliant diesel models to cut benefit-in-kind (BIK) tax bills.

The firm has awarded the contract to manage its fleet to ALD Automotive and as vehicles come up from renewal, car drivers will be moved from Ford Focus into Vauxhall Astra 1.7 CDTi models, which are Euro IV compliant.

They emit 124 grammes per kilometre of CO2 and incur a 15% BIK bill. If drivers were given non-Euro IV model, they would pay at least 18% BIK tax since company car drivers who have non-Euro IV diesel cars are subjected to a 3% BIK tax supplement to reflect the higher emissions their vehicles produce.

ALD has taken over the management of the charity's existing fleet from the previous supplier and will replace vehicles as they reach the end of their three-year/60,000 mile contracts.

All vehicles, which are driven by area retail managers and van drivers who collect donated goods from the public, will be supplied on full maintenance contract hire with accident management. In addition, Oxfam drivers have access to a 24-hour helpdesk. The charity operates a diesel fleet of 120 vehicles in the UK, including cars, vans and 7.5 tonne trucks, the majority of which are leased, with the remainder outright purchased.

Oxfam's move follows a major review of its fleet operation that began more than six months ago and involved assessing more than a dozen contract hire and leasing companies.

Maggie Hamilton, Oxfam supply manager, said: 'Although we need vehicles to provide operational support for our network of 760 shops, we decided to outsource the management and administration of the fleet to ALD Automotive to enable us to focus on our core activities and to reduce costs.'

Keith Allen, managing director of ALD Automotive, said: 'By bringing a new focus and new ideas to the fleet operation, Oxfam will reduce both its fleet operating costs and administration costs. And as employees switch to Astras, they will see their monthly company car tax bills reduce.'