As the UK’s lockdown restrictions are gradually lifted and we enter the ‘new normal’ we know that businesses will have many challenges ahead. One of the challenges for businesses will be fleet efficiency.
Both our team’s expertise in securing the right vehicle for our customers needs over a 30 year period and our professional fleet management software Fleet Manager Plus can help you to plan for this next phase and future proof your fleet.
Working from home has, since the end of March been encouraged where possible. If you have an employee with a car that is due for renewal soon, the figures you are working with, both financially and expected mileage, will look very different.
Businesses will need to consider the types of vehicles they need to run in the future – is now the time to switch to smaller models, hybrids and fully electric cars? Read our guide to switching to an alternative fuel vehicle here.
With 0% Benefit-in-Kind tax rates for 2020, rising to 1% in 2021 and 2% in 2022, electric vehicles can provide their drivers with low tax bills and provide businesses with reduced fuel costs and Class 1A National Insurance Contributions. The business’s Corporate Social Responsibility (CSR) strategy, and any aims it may have to reduce its carbon footprint can also be taken into account when opting for ‘green’ vehicles. Reduced mileage for many workers could be the ‘push’ needed to make the change.
It may also be pertinent to discuss shorter contracts. If you have always leased for 4 years, perhaps you will now consider 2 or 3. Shorter contracts are arguably less of a risk, have smaller credit lines and allow you to reconsider the vehicles you are leasing at more regular intervals.
Of course, some people will still be travelling the length and breadth of the UK and remain high mileage drivers who would not benefit from switching to an alternative fuel vehicle – there’s good news for this group to! Diesel-engined cars that meet the latest RDE2 emissions standard will not be subject to the 4% BIK surcharge. RDE2, which came into force in January 2020 for new-to-market cars and January 2021 for all new vehicles, reduces the permitted level to 1.5 times that which must be achieved in the lab.
Our team can advise you which vehicles are RDE2 complaint.
Our experienced team can help you to navigate these changing times and explore the best options for you and your fleet. Please contact us today to discuss further.