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November/December 2016

BVRLA News The bimonthly newsletter of the British Vehicle Rental and Leasing Association

Mixed tax messages in Autumn Statement In his first Autumn Statement as Chancellor of the Exchequer, Philip Hammond made a number of contradictory announcements affecting the fleet industry.

than 75g/km CO2 will be exempted. HM Revenue & Customs has said it will not penalise employer-provided car arrangements made before April 2017 until April 2021.

The decision to revise company car tax bandings for ultra low emission cars was welcomed by the BVRLA, although the association was disappointed that the changes would not take effect until April 2020.

With no mention of Vehicle Excise Duty in the Chancellor’s statement, the BVRLA expressed disappointment that the government was not reconsidering the new VED regime being introduced next year.

“We are pleased that the government has recognised the importance of the company car market in supporting the take up of ultra low emission vehicles,” said BVRLA Chief Executive Gerry Keaney. “The new bandings will create a much greater incentive for employers and employees to choose the cleanest electric and hybrid cars. However, the ULEV market could suffer in the meantime as company car tax costs rise significantly between now and 2019.” Hammond also announced that from April 2017, the tax and National Insurance advantages accruing to employers from ‘salary sacrifice’ schemes will be removed. However, following lobbying from the BVRLA, cars that emit less

More positively, from the association’s point of view, was the Chancellor’s extension of the fuel duty freeze for the seventh year in succession. Hammond also announced £220m for relieving traffic pinch-points on the strategic road network and an additional £390m investment in electric, connected and autonomous vehicles (including £80m for charging infrastructure). He also said that businesses would be able to deduct the full cost of a new electric vehicle workplace charge point from their beforetax profits. u For more on the Autumn Statement and subsequent Finance Bill see page 4. The 2016 Autumn Statement can be downloaded from the HM Treasury website:

Christmas and the New Year The BVRLA offices will be closed from 2pm on 23 December until 8.30am on 3 January 2017. Orders for VE103B forms and copies of Fair Wear & Tear Guides received after 22 December will be delivered after 3 January 2017.

Members who want to remind themselves of what the BVRLA did in 2016 can read our Annual Review, which they shall receive through the post shortly. It is also available to read on the BVRLA website:

Company car key facts: what you need to know The draft Finance Bill, which is expected to come into force next year, will affect Company Car Tax and salary sacrifice. page 4 McGowan set to make a big impression Alistair McGowan is announced as the entertainer for the BVRLA’s Annual Dinner 2017. page 5 Vehicle rental and leasing on the up At this year’s Industry Conference, the BVRLA revealed how the industry is going from strength to strength. page 6 CPD programme set to launch in new year A Continuing Professional Development scheme will be introduced to recognise members’ skills development. page 8 Q3 leasing survey shows positive outlook The BVRLA’s latest quarterly leasing survey has revealed an increase in business confidence among leasing members. page 9 Forums achieve high attendance figures BVRLA forums were attended by more than 300 individuals from member organisations in 2016. page 10

• Promoting responsible road transport since 1967 •

London Hilton, Park Lane 2 March 2017 The BVRLA returns to London’s West End for its Annual Dinner. It is the only evening to bring the whole industry together and we are celebrating 50 years of representing the industry. Last year more than 900 people representing over 100 companies enjoyed top-class food and entertainment at the London Hilton on Park Lane. Why not bring some of your clients or business partners to this must-attend

occasion, which is widely acclaimed as the friendliest, funniest and most looked-forward to event in the rental and leasing industry calendar? As well as providing an unrivalled opportunity to network amongst your peers, you can join with us recognising some of our industry’s most talented individuals and unsung heroes. Further details on the event will follow. Interested in finding out about our sponsorship packages for this event? Email

To book, please contact Fran Hampson on 01494 545703 or email

50th Anniversary


The BVRLA team

Chief Executive Gerry Keaney 01494 545716, Secretary to the Chief Executive Kate McLaren 01494 545709, Management Accountant Bharti Ladwa 01494 545708, Accounts Assistant Melanie Richardson 01494 545722, Director of Communications & External Relations Toby Poston 01494 545700, Research & Insight Manager Phil Garthside 01494 545717, Media Relations & Communications Manager Jamie Fretwell 01494 545710, Marketing & Communications Executive Tamsin Stuczynska 01494 545707, Director of Member Services Nora Leggett 01494 545713, Events Executive Fran Hampson 01494 545703, Learning & Development Professional Duncan McMillan 01494 545719, Member Services Executive Laura Birdsey 01494 545714, Director of Policy & Membership Jay Parmar 01494 545706, Membership Manager Greg Theaker 01494 545705, Compliance & Governance Executive Adam Holt 01494 545718, Compliance & Membership Co-ordinator Diane Alexander 01494 545720, CRM Data Manager Robert Burford 01494 545702, Senior Policy Advisor Patrick Cusworth 01494 545712, Legal & Policy Executive Amanda Brandon 01494 545701, Conciliation Service Manager Sallie Catchpole 01494 545715, Conciliation Service Officers Rick Connors 01494 545711, Stephen Dix 01494 545711,

Westminster: the BVRLA will use its contacts to press the fleet case

Comment By Gerry Keaney, BVRLA Chief Executive

The government has shown it understands the fleet industry Christmas is a time for giving but the government has bestowed precious few gifts upon the vehicle rental and leasing industry this year. As you will read in this issue, the Autumn Statement and Finance Bill have at least proved that ministers and policymakers understand the vital role our sector plays in shaping the UK’s car parc. They now need to turn that understanding into action. As outlined at our Industry Conference at the beginning of December, we know 2017 will be a challenging year for the sector,

particularly as we learn more about the impact of the vote to leave the European Union. But we have good relationships with contacts in Whitehall and Westminister, as was evidenced at our Parliamentary Winter Reception, and we will be publishing our policy papers in the new year. Members can look back at 2016 in the BVRLA Annual Review, but I’d like to take this opportunity to thank all members for their support. Merry Christmas, and we hope you have a happy, healthy and prosperous New Year.

The British Vehicle Rental and Leasing Association River Lodge, Badminton Court Amersham, Buckinghamshire HP7 0DD Tel 01494 434747 Fax 01494 434499 Email Web © Copyright BVRLA 2016. BVRLA News articles may be used copyright free by members provided that an acknowledgement is given.

Honorary Life President Freddie Aldous Chairman Simon Oliphant

Vice Chairman Matt Dyer Honorary Treasurer Brian Back

Sarah Philp 01494 545711,

BVRLA News | November/December 2016



Company car key facts: what you need to know about coming changes Following the Chancellor’s Autumn Statement, the government has published the draft Finance Bill, which is due to be debated and come into force during 2017. Here’s what you need to know.

Company Car Tax

The Finance Bill has set out detail on the new, more granulated range of company car tax bandings for ultra low emission vehicles from April 2020. In that month, the appropriate tax rate for zero emission cars will drop from 16% to 2%. This could cut a basic rate taxpayer’s company car tax bill by around £70 a month, or save a higher rate taxpayer up to £140 (based on a Nissan Leaf Acenta 30Kw with a P111D value of £30,225). BVRLA Chief Executive Gerry Keaney commented: “It is great to see that the government now has a more comprehensive strategy on ultra low emission vehicles, which recognises the huge role played by the fleet sector. The company car tax regime is the single most powerful tool policymakers can use to drive behaviour change, but it is not being used effectively. By delaying these tax incentives until 2020,

Company Car Tax Rates from April 2020

For emissions up to 50g/km CO2 Mileage range in zero emission mode

Appropriate % of car list price tax





Up to 130












Under 30


CO2 emissions (g/km)


the government could encourage thousands of pragmatic, costconscious drivers to defer the move to low emission motoring.”

Salary Sacrifice

As outlined on page 1, the tax and employer National Insurance advantages of salary sacrifice schemes will be removed from April 2017, though cars which emit less than 75g/km CO2 will be exempt from these changes until 6 April 2021. Cars for which salary sacrifice contracts begin, end, are varied or auto-renewed before 6 April 2017 will also remain exempt until 2021. The reform will apply to arrangements where the employee forgoes cash in exchange for a benefit in kind (BiK), including salary sacrifice arrangements, flexible benefit packages with a cash alternative, and BiKs where there is an option to take a cash allowance instead. This includes vehicles provided under a cash-alternative basis, as well as pure salary sacrifice arrangements. The BVRLA has published Fact Sheet 602, which provides more information on the Salary Sacrifice changes. It can be accessed on the BVRLA website (

What the BVRLA is doing now

The BVRLA is also urging HMRC to make a decision on what Advisory Fuel Rates (AFRs) will apply when electricity is used as a fuel type. Furthermore, the association is lobbying the government to delay the introduction of the new Vehicle Excise Duty regime, which is due to come into effect in April 2017. The BVRLA estimates this will result in a tax rise for rental companies of £31.4m next year. It believes that

CO2 emissions (g/km)

Appropriate % of car list price tax















































Company Car Tax Rates from April 2020

For emissions over 50g/km CO2 to mitigate this, car hire firms would operate their fleets for longer – resulting in over 29,000 fewer new car registrations next year. u For more information on the BVRLA’s lobbying work, contact Senior Policy Advisor Patrick Cusworth. Contact Patrick Cusworth 01494 545712

November/December 2016 | BVRLA News

McGowan set to make a big impression at the BVRLA Annual Dinner

Harmonised vehicle test is a cause for concern

The BVRLA is delighted to announce that Alistair McGowan will be entertaining guests at our Annual Dinner in 2017.

The BVRLA has produced a fact sheet on the new Worldwide Harmonised Light Vehicles Test Procedure (WLTP).

Best known for BBC One’s BAFTAwinning show The Big Impression, McGowan’s take-offs of David Beckham, Dot Cotton, Richard Madeley and Gary Lineker became legendary. Obsessed with the art of impressions, McGowan constantly updates his ‘victims’ – and is admired for his imitations of sports stars, TV personalities and political figures alike. He has featured on Who Do You Think You Are?, hosted Have I Got News For You and

appeared on Live At The Apollo and countless other TV stand-up shows in a career that spans 25 years. Taking place at the London Hilton on Park Lane on 2 March 2017, the BVRLA Annual Dinner is the mustattend social occasion for those who work in the rental and leasing industry. u To find out more about the Annual Dinner, contact Events Executive Fran Hampson or visit the BVRLA website: Contact Fran Hampson 01494 545703

Workshop addresses best ways to deal with data The BVRLA recently held a workshop with members to explore some of the ways that connected vehicle data could be used to improve rental and leasing services. Representatives from both sectors worked with connected car consultants SBD to produce a series of detailed vehicle data use cases focusing on mileage management, duty of care/insurance, service, maintenance and repair (SMR), and data cleansing. The use cases provide a detailed summary of the vehicle data elements that are required, the way they would be used, the problem they would solve and the benefits they could provide to vehicle manufacturers, BVRLA members and their customers.

“These use cases will provide the detailed examples we need to support our call for fleets to be given secure, affordable and standardised access to the huge range of data that connected vehicles produce,” said Toby Poston, BVRLA Director of Communications & External Relations. “There is huge potential to use this new data to provide improved or additional services to customers, and we hope that members will be able to refer to these use cases as part of their ongoing discussions with vehicle manufacturers.” u To discuss the BVRLA’s work in this area, contact Toby Poston. Contact Toby Poston 01494 545700

BVRLA News | November/December 2016

WLTP is a replacement for the New European Driving Cycle (NEDC) which was first used in 1992. WLTP will measure a new vehicle’s individual CO2 value, taking into account the vehicle mass, including optional equipment, tyre rolling resistance class and aerodynamic options. BVRLA members have expressed concern over the new test, because it is likely to identify higher CO2 emissions for vehicles than the previous method did. It is also expected to make the process of quoting prices to customers for vehicles more complicated, because of the requirement to calculate the effect of accessories on emissions. Members should consider how their procedures will need to change and how to communicate this to their customers. WLTP testing will be introduced for any vehicle with a new type approval number from September 2017. It will be introduced for all vehicles from September 2018. During a transitional period between September 2017 and 2020, new vehicles will have correlated NEDC and WLTP typeapproval values to allow a comparison. HM Revenue & Customs has said there will be no changes to bandings for company car tax or Vehicle Excise Duty when the new test procedure is introduced. u The fact sheet is available on the BVRLA website:



Industry Conference highlights positive 2016 for fleets At this year’s Industry Conference, the BVRLA revealed how the industry is going from strength to strength BVRLA Chief Executive Gerry Keaney told more than 150 delegates to the December event that the BVRLA now has more than 900 members – an increase of 128 since the end of 2015.

presented the association’s outlook for 2017. Delegates then heard from a panel of experts, who discussed grey fleet, emissions, HMRC’s planned tax changes and the rise of personal leasing.

Speaking at the National Conference Centre in the West Midlands he told delegates that the majority of companies who joined the association in 2016 were leasing brokers. There are now 308 BVRLA members from this sector – a 40% year-on-year rise.

There were also break-out sessions which enabled attendees to discuss residual values, future mobility models and Brexit, before delegates heard from a leading economist and David Betteley, the Director of Global Financial Services at Jaguar Land Rover.

The overall growth in membership has had a corresponding impact on the number of vehicles for which members are responsible; members’ fleets now have more than 4.7 million vehicles, more than 3.8 million of them cars.

Throughout the day, delegates were able to view the latest models from headline sponsor Jaguar Land Rover. The conference was supported by Blackhorse and cap hpi. u

After discussing this growth, Keaney delivered a review of 2016, and


Speakers’ presentations can be downloaded from the BVRLA website:

November/December 2016 | BVRLA News

Clockwise from top: Gerry Keaney addresses the conference; a chat at the CCAS stand; a Range Rover SVR; attendees

BVRLA News | November/December 2016



Regulatory Business Plan workshop Professional development: a new BVRLA initiative will enhance skills

CPD programme set to launch in new year The BVRLA is introducing a Continuing Professional Development (CPD) scheme from January to help members’ employees enhance their skills. CPD is used across many business sectors as a way for employees to demonstrate their development, whether to progress towards a new role or enhance their existing skills and knowledge. BVRLA Learning & Development Specialist Duncan McMillan said: “We want to assist our members in recognising their development through learning when they engage with the learning options

the BVRLA provides. Whether they attend a training course, attend one of our forums or read a fact sheet, we will provide a CPD award in the form of points and time spent. Members can record this learning event as they see fit to show their development in the workplace.” u

The BVRLA and Consumer Credit Advisory Services (CCAS) will run a workshop for Leasing Broker members on the need for a Regulatory Business Plan to satisfy FCA Regulation. Aimed at Approved or Responsible Persons or Compliance Officers, the three-hour workshop will look at the importance, purpose and maintenance of a Plan. Attendees will explore how to set up a Plan, and how to monitor and review it to remain compliant. The first workshop will take place on 24 January 2017 at CCAS’ offices in Swindon. u

Further details will be published in January 2017 and made available to members on the BVRLA website:

For further details and to book a place contact Learning & Development Specialist Duncan McMillan.

Contact Duncan McMillan 01494 545719

Contact Duncan McMillan 01494 545719

Health Checks help hundreds to improve The BVRLA’s Health Check programme has reached the end of its first year, with auditors assessing more than 370 members.

The BVRLA has improved plans to help drive the benefits of our upcoming visits for 2017 and help the way compliance is perceived and applied in line with the Code of Conduct. u

With the help of the AA and Consumer Credit Advisory Services (CCAS), BVRLA auditors visited over 200 rental members and more than 170 leasing broker members in 2016. There has been a lot of positive feedback from BVRLA members about how helpful these Health Check visits have been and how they strengthen their operations.


Members who did not receive a visit this year should expect to be contacted in 2017. Alternatively, contact Compliance & Governance Executive Adam Holt to book a Health Check.

Audit: such checks help members

Contact Adam Holt 01494 545718

November/December 2016 | BVRLA News


Q3 leasing survey shows gloom lifting The BVRLA’s latest quarterly leasing survey – covering Q3 2016 – has revealed an increase in business confidence among leasing members. When assessing the figures in context it is worth considering that responses for the Q1 survey were collected prior to the Brexit vote, Q2 figures immediately after the Brexit vote, and these Q3 figures were taken three months after the Brexit vote. The Q2 2016 survey showed a marked decline in confidence in the UK economy, and confidence in the leasing sector, but in Q3, levels have returned to a similar level to Q1 2016. However, overall confidence is declining when compared to the preceding year. Despite this, growth within the sector is evident. The BVRLA business fleet leasing sector (contract hire and finance lease for cars and vans) is reported at 1,351,000 vehicles – an increase of 5.2% year on year. The total car leasing fleet grew by 10% year on year, with personal contract hire contributing 57% of this growth.

The proportion of the total fleet in Vehicle Excise Duty Bands A and B continues to rise, but there are signs that growth in Band A (up to 100g/km CO2) may be slowing. The majority of Band A cars emit between 95 anºd 100g/km CO2 but the sub-95g/km CO2 sector continued to grow from 36.7% in Q2 to 39.8% in Q3. The proportion of diesel in total fleet continued its gradual decline in Q3. Petrol increased and the long-term surge in demand for plug-in hybrids continued. This has contributed to average CO2

emissions for the total leasing fleet falling to 115.3g/km. The average new vehicle added to a member’s leasing fleets in Q3 emitted just 102.7g/km CO2. u Members can download the full Q3 leasing survey from the BVRLA website: For more statistics, contact Research & Insight Manager Phil Garthside. Contact Phil Garthside 01494 545717

UK Economy 2014-2016

Leasing members’ business confidence improves in Q3 2016 100% 50% 0% -50%




Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 14 14 14 14 15 15 15 15 16 16 16

According to responses to our 2016 Member Survey: The top three reasons for joining the BVRLA were:

The top three policy priorities outlined by members were:


Strong voice to represent the industry

Brexit Impact/ Preparations


Status and credibility

Business and Motoring Taxes


Source of information and advice

Cutting Red Tape and Bureaucracy

BVRLA News | November/December 2016




of members say the BVRLA is easy to work with

BVRLA are great to deal with and support us whenever we’re up against it


of members believe the BVRLA delivers good or very good value for money

Publicise to consumers the benefits of choosing a BVRLA member


of members are satisfied with the BVRLA overall

I attended one of the regional forums recently and found it to be really informative



Hundreds flocked to our forums in 2016 The BVRLA had a bumper year for forums, with the Technical & Operational Management (TOM) and Residual Value & Remarketing (RVR) Forums attended by more than 300 individuals from member organisations. TOM Forums cover the operational aspects of a rental and leasing company’s business, including vehicle ordering, purchasing, specification, licensing and recalls. In 2016, TOM Forums featured discussions on new vehicle technology, accident management, windscreen technology, tyre safety awareness, accident repair solutions and repair technology. One TOM Forum attendee said: “The most interesting was the presentation on satellite technology – very thought provoking!” Future TOM Forums will look at road safety, driver behaviour, telematics, independent repair networks, smart repairs, batteries, data and remote diagnostics.

The RVR Forum embraces many of the aspects of determining residual value risk, including preprocurement, best practice in vehicle collection and vehicle resale. The past year’s RVR Forums included insights into the economy and SME business confidence, used van trading conditions, remarketing and buyer behaviour, lending trends in motor finance, and residual values. One RVR Forum attendee said: “I learned about new, interesting and potentially highly useful data.” Future RVR Forums will discuss market dynamics and trends, the Worldwide Harmonised Light Vehicles Test Procedure (WLTP), future legislation and how Brexit will affect the sector. u

Diane Alexander: on the team

More support for members The BVRLA has bolstered its membership team with the addition of Diane Alexander as Compliance & Membership Co-ordinator. Diane will be handling the administration of member renewals and will also assist with the BVRLA’s governance and audit programme.

For more information or to attend next year’s forums, contact Event Executive Fran Hampson.

The membership team consists of Membership Manager Greg Theaker; Compliance & Governance Executive Adam Holt; CRM Data Manager Rob Burford; and is headed by Director of Policy & Membership Jay Parmar. u

Contact Fran Hampson 01494 545703

Contact Diane Alexander 01494 545720

Spectacular events for anniversary year In 2017 the BVRLA is celebrating 50 years of representing the industry with an exciting year of commemorative events.

the Fleet Technology Congress at the Williams F1 Centre in Grove on 5 July, and the Golf Day at the Oxfordshire on 6 September. u

No fewer than 22 events are planned across the year. In addition to a series of 50th Anniversary Evening Events, there will be three Technical & Operational Management Forums, three Residual Value & Remarketing Forums, and two Asset Management & Risk Control Forums.

The full calendar of BVRLA events can be found on the BVRLA website:

Highlights from the calendar include the Annual Dinner at the London Hilton on Park Lane on 2 March,


For more details, or to attend any of these events, contact Events Executive Fran Hampson.

Annual Dinner: always a highlight

Contact Fran Hampson 01494 545703

November/December 2016 | BVRLA News



New associate members Mouchel

Mouchel is an enforcement sector specialist and, through its Taranto software applications, the UK market leader in the provision of road user charging and parking enforcement systems. Mouchel’s Taranto system, which is used to process 4.5 million Penalty Charge Notices annually, has an integrated bureau service that fully automates the fines-handling process for fleet companies and issuing authorities, both in terms of the exchange of fines correspondence and fines payments.


Formed in 1909, Suzuki is now one of the world’s most successful automotive brands and ranks currently as the ninth largest car manufacturer. Known as the ‘Small Car Experts’, two of its most successful models are the new Celerio city car and Swift compact supermini. Suzuki launched its new Baleno hatchback in June 2016, which was followed by a Facelifted version of its S-Cross Crossover model in October and will introduce the Ignis Mini Crossover in January 2017.

New members Rental Bayfield Vehicle Hire (Bayston Hill)

Leasing & Fleet Management Alliance Asset Management (St Neots) Hyundai Finance & Kia Finance (Redhill)

Players Cars (Wakefield) Vehicle Save Contract Hire and Leasing (Marsh Barton)

Leasing Broker BHP Leasing (Hoddesdon)

My Car Boutique (Rayleigh)

Hawkins Velocity (Stanstead Abbotts)

TrueFleet (Huddersfield)

Introduction to Daily Rental 1-2 February, Bromsgrove These two days of training provide a sound foundation for the skills and knowledge required to work as a customer service specialist in today’s daily vehicle rental environment. They give a good grounding for employees who are new to the business and need clear and relevant information to get them started. Selling Regulation and Compliance for Leasing Brokers 3 February, Bromsgrove Providing an update in knowledge and technical expertise, this one-day workshop is vital for leasing brokers. Subjects range from tax changes to regulatory updates. Selling Contract Hire 22-23 February, Bournville Aimed squarely at sales professionals and their managers in the leasing and fleet management sectors, this two-day course provides valuable knowledge and skills enhancement in an interactive format. Fair Wear and Tear Training 23 February, Sutton Coldfield This industry-specific programme provides a working knowledge of the BVRLA’s fair wear and tear standards. It promotes industry guidelines and best practice, with classroom training and practical exercises. Contact Duncan McMillan 01494 545719

BVRLA Events Technical & Operational Management Forum

2 February

Venue TBC

Residual Value & Remarketing Forum

8 February

Venue TBC

BVRLA Annual Dinner

2 March

London Hilton on Park Lane

Asset Management & Risk Control Forum

20 April

Shoosmiths Northampton

25-27 April

Birmingham NEC

CV Show

For details contact BVRLA Events Executive Fran Hampson: 01494 545703, Full details of all BVRLA events can be found online:

BVRLA News | November/December 2016


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BVRLA News, November/December 2016  

The newsletter of the British Vehicle Rental and Leasing Association (BVRLA) for November/December 2016

BVRLA News, November/December 2016  

The newsletter of the British Vehicle Rental and Leasing Association (BVRLA) for November/December 2016