23 July 2021
While fuel cards can be used within many different sectors and industries, they are particularly popular with taxi drivers and car services.
From sole-traders to larger car firms, fuel card services can be used by all kinds of drivers to simplify their administration and costs, without having to implement a whole new system or disrupt their operations.
Everything you need to know about fuel cards
A fuel card, at the most basic level, is a credit card that is only used to pay for fuel, usually petrol and diesel fuel however there are also fuel cards that can be used with hybrid and electric charging vehicles too. Fuel cards for taxis and car services, fuel is a major business expense that can’t be avoided, so having a system in place to simplify fuel expenses will help to reduce your admin.
Instead of paying for company fuel on a personal card or with cash, drivers get a fuel card of their own, pay for fuel as they normally would do and then the company account is billed directly. If you have multiple drivers, the fuel payments all come into one account, on a single HMRC-compliant invoice which makes clearing your fuel costs much simpler than reimbursing each driver for their fuel costs.
On your fuel card statement you have visibility of your fuel card usage, you can see where each driver refilled at, when and the cost. Having this information makes it far simpler to stay in control of fuel costs and you can ensure your business is staying productive every minute your drivers are on the road. This ultimately reduces the administration time spent on reimbursing multiple expense accounts, and your drivers no longer have to hold onto fuel receipts.
Fuel cards can be used at any fuel site that is part of the card's network which may include supermarkets, premium branded fuel sites, motorway services and smaller local branded sites.
For taxis and car services in particular, being able to refuel using your fuel card without needing to deviate off route making any time, fuel and cost-consuming diversions is incredibly valuable, as it means you’re able to spend more time on the road making billable journeys for customers, rather than wasting precious minutes searching for a fuel site. Allstar are working every day to expand our network and improve our service for all of our customers, including taxis and driver services.
The Benefits of Fuel Cards for Taxi Drivers
Taxi drivers naturally spend a lot of money on petrol or diesel for their vehicles because their work entails driving around and transporting passengers from one location to another. Since the vast majority of taxi drivers are self-employed sole traders, keeping costs, including fuel expenditure, low and productivity high is critical for maximising earnings and profits. Fuel cards can be a useful tool for this side of your business, as they allow you to spend more time working, and less time worrying about business fuel expenses. Fuel cards for taxi drivers are a smart way to keep on top of all fuel expenses, both personal and business, whether you're driving for a conventional taxi company or a ride-hailing app.
A fuel card functions in the same way as any other payment system on the forecourt, making them incredibly easy for drivers to use. However, the account is charged when you pay with your fuel card, instead of the bank account, and the balance is then deducted from the related business account. This eliminates the need for individual drivers to spend personal funds on their fuel purchases and then process expense claims later, drastically reducing the amount of business admin expected of them, allowing them to focus on driving rather than administrative tasks.
The Benefits of Fuel Cards for Car Service Companies
For an individual driver who is employed by a car service or taxi company, fuel cards are particularly useful as they allow business owners and their drivers to bypass traditional payment methods for their business fuel. Driver’s business expenses go directly to the business, so they don’t need to worry about reimbursement, or carry around petty cash, which can put drivers at greater risk of being a victim of a crime.
Fuel card usage is also very secure, Allstar fuel cards are PIN secured as a normal credit or debit card would be, but they can also be linked to each driver or vehicle specifically, which allows administration and accounting teams to pick up on strange transactions and anomalies very quickly. If you notice an unusual transaction on an Allstar fuel card, it’s as simple as logging on and using our online account management tool to freeze or cancel any fuel card. You can also quickly and easily order new fuel cards if a driver was to lose or damage their own linked fuel card, and automatically deactivate the old card remotely to prevent fraud.
Your drivers’ Allstar fuel cards can be used at any of the 90% of UK fuel stations on our network, and can be used to pay for fuel used in the course of their work with you. This also makes it much simpler for these costs to be deducted as valid expenses from your company’s tax bill, saving you money in the long run and ensuring your HMRC-compliant invoices are completely accurate.
To find out more about how fuel cards can be used by taxis and car services, or to apply for your fuel card today, don’t hesitate to get in touch with our expert teams. Alternatively, take a look at the range of Allstar fuel cards and see how our different cards can help your business streamline and grow, whether you’re a sole trader or are managing a large fleet of vehicles.