Meet the team – Pete Hitt

Name: Pete Hitt

Job Title:  Head of operations

Explain your role in 10 words: Fast moving total cradle to grave fleet management service provision.

What’s the best aspect of your job?  Vehicles

What’s the worst aspect of your job?  Vehicles

How long have you worked at Fleet Service GB? Three years

What was your first paid job?  Served cream teas at Wookey Hole Caves

What’s your favourite car?  1995 – Ferrari F355

What one thing would you like to achieve before you retire? Cycle from Land’s End to John O’Groats unsupported in less than 10 days.

Outside of Fleet Service GB, what would your dream job be? Test driver and quality control for a premium motor manufacturer.

Who in the world would you most like to meet? Peter Kay

What is your favourite way to spend a day outside of work? Early morning dog walk in woods, brunch, cycle ride, rugby on TV.

If you won the lottery how would you spend the cash? Look after nearest and dearest and then mostly cars and self propelled toys.

Not a lot of people know that …………………… I have a fear of any fairground rides that are any more involved than the dodgems!!!

Fleet chiefs must select right car for the right job, says FSGB, as ‘war on diesel’ intensifies and manufacturers axe models

Fleet decision-makers must remain focused on operating the right cars for the right job amid media hype surrounding the ‘war on diesel’.

The so-called ‘demonisation of diesel’ by a largely ill-informed national media has been blamed for the slump in new car diesel registrations – down 17.1% last year and 24.9% in the first two months of this year, according to figures from the Society of Motor Manufacturers and Traders (SMMT).

The organisation has blamed the dramatic decline in diesel demand – fleet’s favourite fuel this century – on a variety of factors including: recent government changes to vehicle taxation, air pollution concerns and the Volkswagen Group ‘dieselgate’ emissions cheating scandal.

However, a number of manufacturers are moving away from producing diesel cars as buying habits change with Toyota the latest to announce that it will axe all diesel cars from its model line-up by the end of 2018.

However, the SMMT has also highlighted that the anti-diesel backlash – alongside the slow take-up of electric vehicles – means that the UK could miss its environmental targets. Last year new car tailpipe emissions increased for the first time in two decades as the drop in diesel demand heralded a move to petrol models that consume more fuel than diesel equivalents and emit, on average 15-20% more CO2, the SMMT said.

SMMT chief executive Mike Hawes said: “The industry shares government’s vision of a low carbon future and is investing to get us there – but we can’t do it overnight; nor can we do it alone. The anti-diesel agenda has set back progress on climate change, while electric vehicle demand remains disappointingly low amid concerns around charging infrastructure availability and affordability.

“To accelerate fleet renewal, motorists must have the confidence to invest in the cleanest cars for their needs – however they are powered.”

That said the SMMT, included today’s new breed of Euro6 compliant diesel engines.

The UK government last year said it would ban the sale of new diesel and petrol cars from 2040 – although not hybrids – with the Scottish government saying it would make a similar move from 2032.

How sustainable the switch back to petrol will be would be heavily influenced by legislators and the most vocal lobbyists, according to the latest analysis by automotive industry analysts and consultants Experteye.

Commenting on last year’s UK rise in new car carbon dioxide (CO2) emissions, Experteye’s newly published ‘European Automotive Report – 2nd half 2017’ report said expectations were for a further rise in 2018 as new car petrol sales gathered further momentum and the diesel decline continued.

The report said: “The challenge legislators across Europe need to get to grips with is that this is not a single issue with a one size fits all solution. Even electric vehicles create environmental issues, whether it is the potential for increases in greenhouses gases in countries like Germany and the UK, which rely heavily on fossil fuel electricity generation, or the drain on rare minerals like cobalt and lithium. Any government or European-wide strategy needs to listen to all sides and not follow the loudest voices to avoid yet another knee-jerk reaction.”

However, the Experteye report warned: “With some of the tax benefits being removed and new charges coming in, the decision about diesel has once again started to have more to do with function and need.”

Fleet Service Great Britain’s message to customers to focus on ensuring they acquire the right new cars for the right operational reasons and don’t get blown off course by media hype comes with a number of vehicle manufacturers announcing that they will be ending the production of diesel cars.

Last year Volvo said it was to stop manufacturing petrol and diesel cars with all new models fully electric or hybrid by 2019. It was the first mainstream carmaker to make the move (The Buzz; July 2017).

This year it has been followed by Porsche, which, while diesel accounts for a small proportion of sales, has confirmed the axing of diesel models from the Macan SUV and Panamera ranges, although the new Cayenne is still expected to feature a diesel powertrain. Nevertheless, it is a clear signal that the manufacturer sees its future based on the sale of petrol and electric models.

Fiat Chrysler has also announced that it will end diesel car production by 2022, following a drop in European consumer demand in the wake of the ‘dieselgate’ emissions cheating scandal that hit the Volkswagen Group, which includes Porsche.

While on the eve of this month’s Geneva Motor Show Toyota said that it would phase out diesel from all its passenger cars in 2018 due to ‘strong customer demand’ for hybrid electric vehicle versions of its core models. The decision makes Toyota the second mainstream motor manufacturer – following Volvo last summer – to announce that it is to axe diesel cars from its powertrain line-up.

In 2017, hybrid electric vehicle accounted for 41% of Toyota Motor Europe’s total sales, an increase of 38% year-on-year to a total of 406,000 units. By contrast, the diesel mix for Toyota passenger cars was less than 10% during the same year.

However, Toyota will continue to offer diesel engines in commercial vehicles including Hilux, Proace and Land Cruiser to meet customer needs.

Johan van Zyl, president and CEO of Toyota Motor Europe, said: “Toyota has been pioneering hybrid electric vehicle technology for more than 20 years. For several years, hybrid electric vehicle have been the dominant powertrain where they have been offered.

“In our latest new model, the Toyota C-HR, hybrid electric vehicle accounted for 78% of sales last year.

“As part of our electrified vehicle strategy, we are progressively expanding our hybrid electric vehicle offering with a second, more powerful 2.0-litre engine. Starting with the new generation Auris, this expanded hybrid electric vehicle line-up is a natural reaction to our passenger car customers’ demands.

“Toyota’s hybrid electric vehicle mix in passenger cars reached equality with the diesel mix in 2015. Since then, hybrid electric vehicle sales have substantially exceeded those of our diesels. In commercial vehicles, where personal and business needs, for example, torque and payload, remain, we will continue to offer the latest technology diesels.”

Meanwhile, Honda’s new CR-V SUV will not be available with a diesel option, although a hybrid powertrain will be available for the first time. The car was revealed at this month’s Geneva Motor Show with first deliveries of models fitted with the 1.5-litre VTEC Turbo petrol engine expected in the autumn with hybrid models following early in 2019.

Finally, amid the switch away from diesel, the Experteye report warned that there could be reduced second-hand demand as fleets and leasing companies defleeted smaller diesel cars, which are traditionally bought by private consumers.

The report said: “With that in mind it is unsurprising to see the residual value setters generally continuing to reduce residual values on smaller diesels like the C segment.”

The report continued: “The smaller MPV and SUV segments are also starting to reflect a change in residual value setters’ approach as the industry moves away from incentivised diesel to a wider mix of powertrains, as concerns grow about future demand for used diesels in the market place given the sharp decline seen in new diesel sales.

“The media reporting of ‘dirty diesel’ has pushed buyers away from replacing what are dirtier older diesels with clean and efficient Euro6 engines and instead encouraged the sale for petrol powered vehicles which has resulted in the first increase seen in CO2 emissions since almost the start of the century in a number of countries. Thanks to political grandstanding the downward trend shows no sign of stopping and we may soon be back to the circa 32% diesel market share we saw in 2000.”

The report concluded: “As expected, residual values have remained relatively stable at an overall level across most of Europe and this is going to continue through 2018 and 2019 but the devil is in the detail.

“Petrol residual values have been on the rise as residual value setters see the change in the demand in the new car market, whilst diesel values have remained stable in some markets and falling in others. As 2018 progresses we expect to see this divide widen, however with diesel making up the majority of fleet vehicles we expect the overall impact will be a fall in the Residual Value Index of a percentage point or two this year and again in 2019.”

Fleet repair costs soar due to ADAS technology

Innovative Advanced Driver Assistance Systems (ADAS) fitted into the latest company cars are important safety aids, but they are adding significantly to the cost of fleet repair bills.

It comes at a time when the Association of British Insurers (ABI) has already warned that vehicle repair costs have accelerated by an average 33% over the last four years – in part due to vehicles increasingly being fitted with sophisticated electrical features, used for a range of ADAS technology.

While Thatcham Research, the motor insurers’ automotive research centre, has previously called for “vehicle manufacturers to urgently engage with the repair industry to halt spiralling costs” after highlighting that the cost of replacing some parts had increased by more than 120%.

ADAS technologies use cameras and radar sensors to help to mitigate the risk of a collision and improve driver safety. They include automatic emergency braking (AEB), lane keeping assistance, blind spot warning systems and speed limiting devices.

The sensors behind those systems are expensive to replace and are often housed in vulnerable areas of the car, such as behind bumpers and windscreens.

That means they are causing a steep increase in the cost of replacing those traditionally cheaper parts. For example, Thatcham Research has suggested that ADAS technology was impacting windscreen replacement, potentially increasing costs by 123% on a Ford Focus and 78% on a Volkswagen Golf.

What’s more, with ADAS technology currently fitted to around 6% of vehicles on UK roads and expected to rise to around 40% by 2020 fleet repair costs looks set to increase even further.

If damaged sensors and other ADAS components are not repaired, they could render on-board safety systems, like lane departure warnings, useless and compromise the safety of the driver and passengers.

The latest study into the cost of various ADAS replacement sensors was conducted by consumer magazine What Car?. It revealed that: Prices reached as high as £1,459 for an ACC sensor on an Audi Q5, £1,629 for a distance sensor on a Volkswagen Touareg and £2,024 for a forward collision mitigation unit on a Mitsubishi Outlander.

However, at the other end of the scale, £690 was charged for a radar sensor on a Toyota C-HR and £483 for the same part on a Skoda Kodiaq.

The publication also highlighted that a number of vehicles on sale did not have ADAS sensors in their bumpers, making them cheaper to repair after a minor incident. The Honda CR-V and Volkswagen Golf, for example, had sensors behind the bonnet badge, and the Nissan X-Trail, Nissan Pulsar, Mini Countryman, Mini Hatch and Subaru XV and Impreza models had sensors located in a unit behind the windscreen.

Steve Huntingford, editor of What Car? said: “The advanced active safety technology available on modern cars has undoubtedly helped to reduce accidents and save lives. However, in future we need improved housings for these systems and sensors that can recalibrate themselves.

“If manufacturers don’t address these rising repair costs, many people could simply decide not to spec the latest safety kit for fear that a small mistake could land them with a huge bill. And then that kit will be of no use to anyone.”

Last year Thatcham Research warned that a “repair storm was brewing” around increasing costs and complexity and said that its Bodyshop of the Future programme was bringing insurers, repairers and carmakers together to address the challenges.

Peter Shaw, Thatcham Research CEO called on vehicle manufacturers to “bring these costs under control”.

At the time he called as “unacceptable’ the fact that the cost for windscreen-mounted ADAS calibration spanned from £0 to £700 – across car manufacturers and often across similar sensors and technology.

FSGB delivers new market-leading IT solutions to save fleets time and money and aid compliance

A string of new technology-based features have been launched by Fleet Service Great Britain (FSGB) designed to save customers time and money in managing their company car and commercial vehicle operations and ensure legislative compliance.

FSGB launched in spring 2015 and, offering a comprehensive range of in-life vehicle management services underpinned by cutting-edge IT solutions and with a customer-centric focus, has expanded to currently manage almost 7,000 cars and commercial vehicles.

The latest IT initiatives, developed at the request of and in partnership with customers include: Event Scheduler, Bespoke Categorisation, Proactive Service, Maintenance and Repair and Rental Check Sheets (see details of each below).

FSGB head of sales Marcus Bray said: “FSGB’s IT solutions come from working hand-in-hand with customers and listening to the issues and problems that they face on a daily basis. Using the experience and knowledge of our employees gained over many years of working in the fleet management sector we can identify, develop and deliver solutions.

“FSGB works on the frontline with customers – effectively as an extension of their own in-house fleet team. Very few companies listen to their customers and then deliver what is requested. FSGB is using technology to make life easier for clients.”

Event Scheduler provides customers with an online overview of ‘planned events’ – for example servicing and MoT scheduled dates, oil change and cam belt replacement – during the fleet life of any vehicle and associated spend. Developed in partnership with customer Stannah, the UK’s leading independent supplier of lift products supplying goods as diverse as loading systems, service lifts, platform lifts, homelifts and stairlifts, the solution is designed to assist with reducing vehicle off-road time and aid vehicle disposal planning.

Vehicle off-road time is a huge cost burden for many fleets and Event Scheduler provides a graphic view of vehicles with intervals due by month and looks to forecast events based on time/mileage. When an event falls due within an agreed tolerance, future events are analysed to see if they can be merged into a single same-day ‘job’ based on the cost of work being undertaken early and a vehicle off road cost for customers.

The feature’s dashboard view provides fleet operators with a scheduled vehicle disposal date, according to company policy. Built-in rule sets allow Event Scheduler to base ‘planned events’ around that date, which, for example, could be brought forward to avoid additional service or MoT costs or see a vehicle moved to a company’s pool fleet replacing an existing vehicle on that fleet. The dashboard also highlights a summary of decisions made based on a disposal review and the system has the ability to reset a disposal date based on a review.

Martin Carter, Stannah’s group information systems director, who manages the company’s fleet of more than 700 company cars and vans, said: “We were looking for something that worked along the line of a master production schedule that showed all activities over a planning horizon. With Event Scheduler we can now plan six months ahead for vehicle disposal and replacement rather than respond to events and can group demand to reduce off road time. As a graphical representation, it’s simple to use and we look forward to it developing further as we gain real world experience.”

Sarah Clifford, FSGB’s head of service delivery, said: “Event Scheduler is a great tool for customers to see at a glance an overview of their fleet’s position. Alongside each vehicle is highlighted spend to date and projected spend to point of disposal. Such data can influence both replacement cycles and future fleet acquisition strategies.”

FSGB is continuing to develop Event Scheduler with the addition of more known or projected events based on customer requirements analysis of fleet data, which, for example, include the regular collection of tyre tread depth readings to enable tyre replacement forecasts to be made.

Bespoke Categorisation enables FSGB customers to easily identify all vehicles that perform a certain operational function or have a customised feature. As a result, FSGB has created a series of standardised categories that are applied to every managed asset enabling customers to split out management information based on their own requirements. Current categories are: Body type, feature (eg 4×4 vehicle, vehicle with tail lift etc), fleet type (pool vehicle, hire vehicle, ‘grey fleet’ vehicle etc), number of seats and vehicle type (car derived van, pickup van, utility vehicle etc). Additionally, customers have the ability to create further categories bespoke to individual requirements. The feature is now being rolled out to each client with many already utilising the tool to personalise asset data.

Proactive Service, Maintenance and Repair (SMR) is designed to assist customers and their company car and commercial vehicle drivers in complying with critically important manufacturer service schedules and MoT demands. Proactive SMR is an enhancement that uses FSGB’s vehicle management system’s ‘due item’ data to alert drivers as early as possible. The feature identifies a forthcoming service, MoT or additional inspection based on time or mileage and starts the pre-booking set up. A job will be initiated and where FSGB records identify a vehicle’s driver – a separate tool assists clients in keeping vehicle/driver allocations accurate – an SMS, email and other notifications are sent via FSGB’s cutting-edge Driver App. A driver’s depot/line manager is also alerted to the requirement as a defined stage within the process.

Ms Clifford said: “FSGB has the capability to customise how far in advance the Proactive SMR process is started; how frequently reminders are sent; and if, and at what point, cost centre managers are involved not only customer-by-customer but item-by-item.

“Should we not receive contact from a driver within a defined period prior to due date FSGB’s system alerts the team and tasks us to make contact with the driver via telephone. The process assists both FSGB and customers in terms of compliance with legislation and with the correct preventative maintenance recommendations for their fleet.”

Rental Check Sheets is an enhancement to FSGB’s Driver App which will enable the completion of a check sheet for any vehicle hired to a driver. The key objectives are:

  • To alert a driver that a Rental Check Sheet requires completion at the start and end of a booking
  • The Rental Check Sheet to provide key information as well as querying vehicle condition
  • The Rental Check Sheet to be stored against the rental reservation – but also stored against the driver should a rental have been arranged outside of the FSGB system.

Ms Clifford said: “Vehicle damage charges at the end of a rental are often very contentious and many customers are on the receiving end at the conclusion of a rental period as well as facing costs related to refueling and other ad-hoc charges.

“The aim with the development of Rental Check Sheets is to alert a driver via the Driver App prior to the rental reservation to complete a vehicle check to identify any existing damage and note the vehicle condition on delivery or as soon as possible subsequently.

“Frequently drivers are not always available to walk around the vehicle at point of delivery and so the aim is to ensure that when they do pick up the keys that they record any damage, taking images using the built in image upload feature and check for any mechanical issues. It is also an opportunity for FSGB to remind drivers to note the level of fuel that the vehicle was delivered with and draw their attention to key information relevant to the rental booking. That includes taking responsibility for the payment of any road and bridge tolls or London Congestion Charge and ensuring the vehicle is available for collection at an appropriate location.

“At the point of termination the Driver App will also alert drivers to complete an end of hire check. Capturing any change in vehicle condition and prompting them to ensure that the vehicle is refueled etc will minimise fleets’ exposure to end of rental charges.”

Fleets and company drivers oblivious to danger of illegal hand-held mobile phone use

Many fleets and company car and van drivers remain oblivious to the dangers of using a hand-held mobile phone while behind the wheel, according to a raft of new data released to coincide with the first anniversary of tougher sanctions for those breaching the law.

The penalties for being caught while using a hand-held mobile phone while driving doubled on March 1 last year from £100 and three penalty points to £200 and six points. The use of a hand-held telephone while driving has been banned since 2003.

The Department for Transport said that more than 26,000 motorists had been caught using a hand-held mobile phone while driving in the first 12 months since the harsher penalties came into force.

In response the government has launched a new THINK! advertising campaign to try and persuade drivers not to use their hand-held mobile phone while at the wheel.

Meanwhile, a survey by RAC Business of 1,000 UK companies discovered that 20% had no policy for mobile phone use while driving. The survey also revealed:

  • 19% of UK firms said their employees had been involved in a crash while driving for work due to using a hand-held phone at the wheel
  • 15% of businesses admitted their drivers were ‘often involved’ in accidents while using a hand-held phone and 5% said it happened ‘on a regular basis’
  • 38% of businesses said they expected commercial vehicle drivers to answer calls while on the road. For larger businesses (500 to 1,000 employees) that figure rose to 49%
  • 30% of businesses of all sizes don’t provide legally compliant hands-free kits

The survey results prompted calls from RAC Business for fleets and business owners to highlight the dangers of using a hand-held phone at the wheel to their employees and to make sure they had a policy in place for the use of phones while driving for work.

Rod Dennis, from the RAC’s Be Phone Smart campaign, said: “It is illegal to use a hand-held phone while driving. But at the same time we recognise that businesses need to stay in touch with drivers and commercial vehicle drivers need to stay in touch with customers.

“The use of hands-free kits is within the law and that can provide a legal and safer solution for businesses, which is how many different businesses operate.

“If employers expect their company drivers and staff to take calls on the road, which 38% admit they do according to our research, then they should be providing legally compliant hands-free kits so they can do that without breaking the law.

“Our survey says 70% of employers do provide hands-free kits, but in our view that still needs to be much higher, and every business should have a clear code of conduct or policy for drivers.

“However just because it’s legal to use a hands-free kit, it doesn’t necessarily means it’s always safe to do so, and it certainly shouldn’t be used to have long conference calls or to proactively make lots of calls on a long journey.

“It should always be down to the driver in terms of how they feel about taking a call and they should only do so if they judge it to be safe and not causing them a distraction.”

He concluded: “In the same survey we asked businesses whether it was important to uphold their ‘duty of care’ towards their company drivers and 92% agreed it was.

“Therefore businesses need to have a policy in place which is not only clear in the expectations of their drivers, but also needs to have a high profile in the business to ensure the message is getting through.”

Road Safety Minister Jesse Norman said: “Some motorists are still not only putting their own lives at risk, but the lives of others. Everyone has a role to play to encourage drivers to put their phone away and not use it while at the wheel.”

National lead for roads policing Chief Constable Anthony Bangham added: “There are still far too many people underestimating the risk that they take when using their mobile phone at the wheel.”

Sarah Sillars chief executive officer at driver training and risk management company, IAM RoadSmart, called for “more personal and corporate responsibility and vehicle, smartphone and social media companies working together to generate hi-tech solutions to the distractions caused by their technology”. She added: “No call is worth risking your own or someone else’s life for.”

Meanwhile, a survey from vehicle CCTV specialists SmartWitness suggested that 20% of drivers still used their hand-held mobile phone at the wheel a year after the tougher penalties were introduced. The company claimed that potentially meant that as many as seven million motorists were still regularly flouting the law.

SmartWitness chief executive Paul Singh said: “These figures are a huge concern for everyone wanting to improve road safety. Studies consistently show that using a mobile phone while driving is as dangerous as drink-driving. The way to tackle this abuse is to make using your phone at the wheel as socially unacceptable as drink-driving and we all have responsibility to hammer home this point.”

  • Using a hands-free phone while driving remains legal, but numerous studies have highlighted that the distraction caused by holding a conversation is as dangerous as if using a hand-held phone.

Vehicle-related tax rises to hit fleets and drivers from April

The cost of motoring for companies and their drivers will increase from April with a range of tax rises coming into force.

April 6, the start of the 2018/19 tax year, signals a two percentage point rise in company car benefit-in-kind tax for models with carbon dioxide (CO2) emissions above 75g/km – rates for cars with emissions of 0-50g/km increase by four percentage points and those with emissions of 51-75g/km by three percentage points (see table below). It means, for example, that an employee driving a 120g/km petrol engined model will see their tax bill increase from 23% of the P11D value in 2017/18 to 25% in 2018/19.

What’s more, the current company car benefit-in-kind tax diesel supplement will increase from 3% to 4% at the same. As a result, employees driving diesel cars will experience a three percentage point tax hike. The supplement increase is estimated by the government to impact on 800,000 employees and is being applied to all diesel cars that are not certified to the Real Driving Emissions 2 standard; there are none currently available.

When HM Treasury announced the supplement increase in last November’s Budget it forecast that drivers of a BMW 3 Series (CO2 emissions 111-130g/km) would see tax bills rise in 2018/19 by £60 (basic rate taxpayer) and £120 (higher rate taxpayer), drivers of a BMW 6 Series (CO2 emissions 131-150g/km) by £125/250 and drivers of a Ford Focus (CO2 emissions 91-100g/km) by £43/£86.

An income tax rise in Scotland from April 6 means that company car drivers resident in the country face larger increases in benefit-in-kind tax rates than those in the rest of the UK in 2018/19.

The new income tax rates for Scotland compared with the rest of the UK add a further layer of administrations for businesses.

The Scottish Parliament is introducing significant changes to the structure of income tax. There will be a five-band regime, which contrasts with the three-band structure applicable in England, Northern Ireland and Wales.

In Scotland, the basic rate band is effectively being split into three – starter, basic and intermediate – to which is added the higher rate band and the top rate band. Applicable income tax rates are: 19%, 20%, 21%, 41% and 46%. It means that middle income – those earning £24,001 and above – and top earners face a 1% rise in income tax versus employees in the rest of the UK. Income tax rates for the remainder of the UK are: 20%, 40% and 45% depending on earnings.

As a result of the income tax increase, a majority of company car tax drivers’ resident in Scotland will face larger increases in benefit-in-kind tax than their counterparts in the rest of the UK as an employee’s tax rate is used in the calculation. Consequently, only a small number of company car driving employees on lower salaries are expected to escape the double hit of a benefit-in-kind tax rise and an income tax hike.

The government is from April 1 introducing a new Vehicle Excise Duty supplement on all new diesel cars first registered from that date.

It means that the First Year Rate of Vehicle Excise Duty will be calculated as if cars were in the band above. For example, a Ford Focus diesel (CO2 emissions 91-100g/km) will be subject to an additional £20 in the First Year, a Volkswagen Golf (CO2 emissions 111-130g/km) an additional £40, a Vauxhall Mokka (CO2 emissions 131-150g/km) £310 and a Land Rover Discovery (CO2 emissions 171-190g/km) £410, according to government figures (see table below).

As with the company car benefit-in-kind tax diesel supplement, the change will not apply to the next-generation of clean diesel engines – those with Real Driving Emissions Step 2 standard certification.

From April 1, Vehicle Excise Duty rates for cars, vans and motorcycles registered before April 2017 and the First Year Rates for cars registered after April 2017 increase in line with RPI.

The annual increase in car and van fuel benefit charges and the van benefit tax charge means that in 2018/19 the rates are:

  • Car fuel benefit charge: £23,400 (2017/18: £22,600)
  • Van benefit-in-kind tax charge: £3,350 (2017/18: £3,230)
  • Van fuel benefit charge: £633 (£610)

The tax charge for zero-emission vans increases to 40% from 20% of the main rate in 2018/19.

CO2 emission thresholds for capital allowances on cars bought outright by companies will tighten from April 1. The new rates are:

  • Vehicles up to 50g/km (reduced from 75g/km): Companies can write down the full cost against their taxable profits
  • Vehicles emitting 51-110g/km (reduced from 130g/km): Companies can write down 18% of the cost of the car against their taxable profits each year, on a reducing balance basis
  • Vehicle above 110g/km: Companies can write down 8% of the cost of the car against their taxable profits each year, on a reducing balance basis.

The 100% First Year Allowance threshold is reduced to 50g/km from 75g/km.

It follow that leasing companies, which are ineligible to claim 100% first-year writing down allowances on cars, will be restricted to 18% (0-110g/km) and 8% (from 111g/km) on a reducing balance basis.

The CO2 threshold for the 15% lease rental restriction is linked to the threshold for capital allowances for business cars, so the rate will be reduced from 130g/km to 110g/km from April 2018. It means that companies that lease can only deduct 85% of any rental payments against their taxable profits on cars with emissions above the threshold.

  • Chancellor of the Exchequer Philip Hammond’s first Spring Statement on Tuesday, March 13 was an update on the health of the UK economy and the state of the government’s finances, rather than laying out any major new tax or spending announcements. However, Mr Hammond did mention towards the end of the Statement that he would “help the great British white van driver go green” by holding a consultation on reduced Vehicle Excise Duty rates for the “cleanest vans”. It is anticipated that the consultation document will be published shortly by HM Treasury.

Company car tax 2017/18 to 2020/21

 

% of  P11D 2017/18 2018/19 2019/20 2020/21
Price CO2 (g/km) CO2 (g/km) CO2 (g/km) CO2 (g/km)/electric mileage range
         
0 N/A N/A N/A  
2 N/A N/A N/A 0-50 (zero emission or 130 miles+)
5 N/A N/A N/A 1-50 (70-129 miles)
7 N/A N/A N/A N/A
8 N/A N/A N/A 1-50 (40-69 miles)
9 0-50 N/A N/A N/A
10 N/A N/A N/A N/A
11 N/A N/A N/A N/A
12 N/A N/A N/A 1-50 (30-39 miles)
13 51-75 0-50 N/A N/A
14 N/A N/A N/A 1-50 (under 30 miles)
15 N/A N/A N/A 51-54
16 N/A 51-75 0-50 55-59
17 76-94 N/A N/A 60-64
18 95-99 N/A N/A 65-69
19 100-104 76-94 51-75 70-74
20 105-109 95-99 N/A 75-79
21 110-114 100-104 N/A 80-84
22 115-119 105-109 76-94 85-89
23 120-124 110-114 95-99 90-94
24 125-129 115-119 100-104 95-99
25 130-134 120-124 105-109 100-104
26 135-139 125-129 110-114 105-109
27 140-144 130-134 115-119 110-114
28 145-149 135-139 120-124 115-119
29 150-154 140-144 125-129 120-124
30 155-159 145-149 130-134 125-129
31 160-164 150-154 135-139 130-134
32 165-169 155-159 140-144 135-139
33 170-174 160-164 145-149 140-144
34 175-179 165-169 150-154 145-149
35 180-184 170-174 155-159 150-154
36 185-189 175-179 160-164 155-159
37 190+ 180+ 165+ 160+
  • From April 6, 2018 for each tax year add 4% for diesel cars up to a maximum of 37%. Cars that meet the Real Driving Emissions Step 2 (RDE2) standard are exempt.

VED for cars first registered on or after April 1, 2018

Emissions (g/km) of CO2 First year rate Standard rate* First Year rate diesel cars
0 £0 £0 £0
1-50 £10 £140 £25
51-75 £25 £140 £105
76-90 £105 £140 £125
91-100 £125 £140 £145
101-110 £145 £140 £165
111-130 £165 £140 £205
131-150 £205 £140 £515
151-170 £515 £140 £830
171-190 £830 £140 £1,240
191-225 £1,240 £140 £1,760
226-255 £1,760 £140 £2,070
Over 255 £2,070 £140 £2,070

*Cars with a list price above £40,000 pay a £310 supplement for five years. After the five-year period the vehicle will be taxed at the applicable standard rate.

NB: Alternative fuel discount 2018/19 £10 for all cars, applicable to first year rate and standard rate.