It is estimated that up to 40% of businesses are using outdated methods to calculate the cost of their fleets and are failing to fully consider whole life running costs.

ING Car Lease found that companies are failing to consider operating costs including NI Class 1A, fuel costs, insurance and, from April, the new net tax position that takes into account a car’s CO2 emissions.

“This shortcoming means that companies are wasting significant sums of money and restricting the choice of vehicles they can offer drivers,” said Paul Ormerod, director of sales.