Fleet law question: Ability to recover RFT fees

My company hires vehicles frequently after accidents and sometimes we get charged an “RFT fee” and sometimes we don’t. I’m told we can’t recover this. Why and what is it? GF, Canary Wharf, London E14

The roadside lawyer answers:

The RFT fee is the Road Fund Tax fee and charged out by many hire companies at about £1.10 per day as a separate item.  Some hire companies simply include this as part of the overall hire cost. Whilst we believe it is recoverable, as the hirer is not given an option as to whether to pay it or not, there seems to be no case law on the point and many insurers refuse to pay it as frequently they don’t understand it.  Our panel solicitors say they can usually get it repaid but often with a struggle.

It may be preferable to use a hire company that incorporates the RFT into its standard daily rate.  In real terms this means that if the daily rate looks cheaper at £18.50  + £1.10 RFT, it will take longer to recover than if the daily rate was £20.00 with no RFT even though the overall cost is lower. However, if your Uninsured Loss Recovery representatives tell you that the RFT fee is not recoverable, challenge it or change the firm you are using.

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