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BMW Business Partnership

The Ultimate Driving Machine

THE FIRST EVER BMW X2. BE THE ONE WHO DARES. Visit bmwbusinesspartnership.co.uk


BMW GROUP Business Partnership

THE PROGRAMME BENEFITS. Designed especially for fleets of 50 cars or fewer, or sole traders looking for a car that works for their business, the BMW & MINI Business Partnership Programme brings you compelling business contract hire rates across the range, special offers and industry advice and expertise from a dedicated Local Business Development Manager. Benefits of the Business Partnership Programme include:

BUSINESS CONTRACT HIRE RATES

LEAD IN FLEET

Benefit from compelling business contract hire rates across the entire range of BMW and MINI models, all provided via your chosen retailer.

As part of our long term flexible rental solution we are able to provide our customers with a BMW or MINI pre-contract car, so you can keep your employees on the move.

DEDICATED LOCAL BUSINESS DEVELOPMENT MANAGER

EXCLUSIVE EVENTS AND PREVIEWS

Every Business Partnership retailer has a dedicated Local Business Development Manager to guide you through all aspects of fleet management.

WHY BMW GROUP? BMW Group offers such an appealing combination of class-leading cars and services that you no longer have to sacrifice performance or driver appeal for low running costs and tax efficiency. As a BMW & MINI Business Partnership customer, you can always expect the highest standard of service. To help continue to improve that service, we’ve introduced a series of commitments for all our retailer staff to uphold. These include: • All vehicles booked in for service or maintenance that do not require a replacement car or collection and delivery service are guaranteed an appointment within three working days. • A three-year unlimited mileage warranty covering any manufacturing defect, including bulbs. • When a vehicle is recovered by BMW Emergency Service, a status update will be given within two hours of its arrival; repairs will be started within 48 hours.

Be one of the first to hear about new models and technology, with the opportunity to attend launch previews at your preferred Centre.


DRIVING

2018

Your annual guide to the company car and van sector

EVERYTHING YOU NEED TO KNOW ABOUT MANAGING VEHICLES Comply with the latest legislation and learn from the best fleet practices


PROVING GROUND JUNE 12-13 2018 MILLBROOK

Company any an yCar

IN ACTION

Drive over 300 vehicles ● Drive on four unrivalled test tracks ● And much more ●

Visit the website for more information

The UK’s premier driving event exclusively for fleet decision-makers and influencers

Register now at

companycarinaction.co.uk


CONTENTS CONTACT US Driving Business, Media House, Lynch Wood, Peterborough PE2 6EA. Editorial Editor-in-chief Stephen Briers 01733 468024 stephen.briers@bauermedia.co.uk Editor Sarah Tooze 01733 468901 sarah.tooze@bauermedia.co.uk News editor Gareth Roberts 01733 468314 gareth.roberts@bauermedia.co.uk Features editor Andrew Ryan 01733 468308 andrew.ryan@bauermedia.co.uk Staff writer Matt de Prez 01733 468277 matt.deprez@bauermedia.co.uk Contributors Tim Anderson, Catherine Chetwynd, Andrew Don, Simon Harris, John Maslen, Tom Seymour Production Head of publishing Luke Neal 01733 468262 Senior designer Erika Small 01733 468312 Production editors David Buckley 01733 468310 Finbarr O’Reilly 01733 468267 Head of project management Leanne Patterson 01733 468332 Project managers Chelsie Tate 01733 468338 Niamh Walker-Booth 01733 468327 Kerry Unwin 01733 468578

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Advertising Commercial director Sarah Crown 01733 366466 Group advertisement manager Sheryl Graham 01733 366467 Account directors Lisa Turner 01733 366471 Stuart Wakeling 01733 366470 Account managers Liam Sancaster 01733 363219 Karl Houghton 01733 366309 Lucy Herbert 01733 363218 Publishing Managing director Tim Lucas 01733 468340 Group marketing manager Bev Mason 01733 468295 Office manager Jane Hill 01733 468319 Group managing director Rob Munro-Hall Chief executive officer Paul Keenan Subscriptions: subscriptions@email.fleetnews.co.uk Printing: PCP, Telford. © 2018 Bauer Media No part of this magazine may be reproduced without the permission of the publisher. You can purchase words or pictures for your own publications. Phone 01733 465982 or email syndication@bauermedia.co.uk. Driving Business will not accept responsibility for unsolicited material. Complaints: Bauer Consumer Media Limited is a member of the Independent Press Standards Organisation (www. ipso.co.uk) and endeavours to respond to and resolve your concerns quickly. Our Editorial Complaints Policy (including full details of how to contact us about editorial complaints and IPSO’s contact details) can be found at www.bauermediacomplaints.co.uk. Our email address for editorial complaints covered by the Editorial Complaints Policy is complaints@bauermedia.co.uk.

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Safety and risk management

LEGISLATION

BEST PRACTICE

06 07 08 10 11

18 Safety and risk management 20 Environment 22 Fleet maintenance 24 Rental 30 Funding 34 Software

Lease accounting rules Salary sacrifice WLTP testing eCall Safety

TAX AND CHARGES 12 13 14 15 16

Company car tax bands Air quality and CAZ Capital allowances VED bands and NIC EV grants

2018 CAR LAUNCH GUIDE 46 Large family cars 48 Medium SUVs 50 Electric and hybrid cars 2018 3


LEGISLATION GDPR

ARE SMEs READY FOR THE T

he majority of UK small businesses (55%) were not familiar with the General Data Protection Regulation (GDPR), according to a poll carried out at the end of 2017 by law firm Collyer Bristow. This is despite the fact that businesses found in breach of the European regulation can face a fine of €20 million (£17.9m) or 4% of total global turnover, whichever is higher. The new law is being introduced in May 2018. Is your business ready? WHAT IS THE GDPR? The GDPR, or Regulation (EU) 2016/679, covers “the protection of natural persons with regard to the processing of personal data and on the free movement of such data”. It aims to give individuals greater control over personal data, including the right to request that their data is edited or erased. It also introduces a duty to report certain types of breach to the UK regulator, the Information Commissioner’s Office (ICO) and, in some cases, to individuals, within a set time.

4 2018

However, one of the trickiest issues for businesses will be consent – whether for personal data to be collected or to be used. “Individuals must give clear consent for their data to be used, but must be allowed to revoke consent easily at any time,” says Paula Tighe, director of information governance at law firm Wright Hassall. “If you change the way you want to use the data, you must obtain a new consent.” Existing consents may need to be refreshed if they are not in line with the GDPR standards. Records will have to be up-to-date, so regular reviews will be essential. WHAT INFORMATION IS AFFECTED? While many of the effects of the GDPR will be felt between retailers and their customers, it will also will change the way businesses interact with their drivers, according to Caroline Sandall, the deputy chairman of ACFO. “A lot of news items have focused on telematics data and the more obvious data things. What is really critical is making sure you can absolutely prove that drivers understand what is happening to

“SOMEBODY WILL GET AUDITED AND PROBABLY FOUND WANTING. THE FINES RELATING TO THIS ARE SUBSTANTIAL” CAROLINE SANDALL, ACFO

their data and that you maintain a robust audit trail to show this. “You’ve got to ensure drivers know what they are signing up to when they have a company car,” she says. “This is a monumental change for HR to deliver, or for smaller companies. You need to think about how you need to change your processes. If you’ve got a paper process, it’s how you capture that consent because at some point, somebody will get audited and probably found wanting. “The fines relating to this are substantial.” Data that could be affected includes: ■ Name, date of birth, age, address. ■ Phone/mobile numbers, emergency contact details. ■ Medical conditions relating to ability to drive. ■ Location information while working and potentially outside

working hours if using a company vehicle (telematics). ■ Driving behaviour (speed, acceleration, ‘aggressiveness’ of driving) – the speed information could be handed to authorities for prosecution. ■ In-car CCTV, which may include personal video footage. ■ Any HR data handled during driver management; performance and disciplinary data. HOW CAN BUSINESSES PROTECT THEMSELVES? Tighe says businesses should undertake a privacy impact assessment (PIA). “These assessments will help you and the regulator decide the likely effects on the individual if their data is lost or stolen and should form part of your ongoing processes,” she says. “Ensure you have a robust process for making the assess-

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GDPR? ments and then record it, along with the outcome – a PIA is a simple step towards compliance, with the emphasis on what you do, rather than on what you say you will do.” However, the single most important step small- and medium-sized enterprises (SMEs) can take to protect against claims of a data breach is by compiling a data protection register. This document records all the actions you are taking to achieve compliance and shows you have understood there is a need for change and what steps you are taking. Tighe says: “Without a record of what you’re doing, the ICO will assume you are doing nothing.” WHO IS RESPONSIBLE FOR DATA? Although it is not a mandatory requirement for every business, one of the most effective ways of ensuring compliance is for an organisation to recruit a dedicated data protection officer to oversee data-handling processes – especially where businesses deal with personal data on a large scale. It is not just electronically-held data that can pose a problem,

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On May 25, 2018, a new European law on personal information called the General Data Protection Regulation (GDPR) will come into effect. We outline what it means for SMEs that operate vehicles according to Tighe – written records are also covered by the regulations. This means businesses will have to ensure all staff are trained on the correct handling of personal data, including when telematics data is accessed by managers. “Organisations that can prove they have made an effort to comply, even if they are not fully compliant with every aspect of the GDPR from the word go, will fare better than those who cannot,” says Tighe. DOES BIG DATA CARRY BIG RISKS? The ICO is working with the Society of Motor Manufacturers and Traders (SMMT) and the British Vehicle Rental and Leasing Association (BVRLA) to better understand the data protection risks in deploying connected and automated vehicles. Martin Evans, managing director at Jaama, which designs and implements software for managing vehicles, says the risks are real: “Big data enables managers to make informed decisions by understanding driver behaviour and vehicle performance and utilisation. But the flip side of that is

being mindful of businesses holding large volumes of data, which will contain information deemed personal under GDPR. “It is vital that businesses have in place good systems that will take vehicle and driver information and digest it.” Even current telematics systems provide a wealth of data, but the information collected must be used responsibly and drivers must be informed about how it will be used. “Businesses must be clear about what data they are gathering and why, where it is going and how it is being used, and gain people’s consent,” says Alex Ktorides, head of ethics and risk and a partner at law firm Gordon Dadds. This means updating contracts of employment, employee terms and conditions and codes of conduct. Ktorides suggests anonymising data – if information is collected on an employee and how they use their car, then it affects their privacy and requires sign-off. Anthony Monaghan, who leads the transportation and engineering practice at global insurance broker and risk adviser Marsh, emphasises that consent cannot be inferred from silence, pre-ticked

boxes or inactivity. “Under the GDPR, where an organisation relies on consent as the legal basis for using an individual’s personal data, that consent must be freely given, specific, informed and an unambiguous indication of the individual’s wishes, meaning that consent has to be a positive opt-in,” he says. IS YOUR SUPPLY CHAIN COMPLIANT? One of the things often overlooked about the GDPR is that it also applies to any third-party organisations that you do business with. “Where you collect personal data, you have obligations to be compliant with data protection legislation. You cannot outsource compliance,” says Jenai Nissim, legal director, data protection and privacy at law firm TLT. List the third parties with access to your data in your personal data register – who they are, what data they have, and what they are able to do with it. Nissim says: “That record is open to inspection by the regulator at any time, and if you don’t have it ready, it’s not something you can pull together at two days’ notice.”

2018 5


LEGISLATION LEASE ACCOUNTING RULES

PREPARE TO ADJUST HOW YOU FILE YOUR ACCOUNTS

At first the standards will apply to listed companies, but it is expected others will follow suit

A

new lease accounting standard becomes mandatory from January 1, 2019, which will require all leased assets, including company vehicles, to be included on the balance sheet. The standard is only applicable to companies which adhere to the International Financial Reporting Standards, e.g. those listed on the Stock Exchange, and the public sector. However, there is widespread expectation that UK Generally Accepted Accounting Principles (GAAP), under which most companies report, will eventually converge with the new standard.

As with any other change to accounting standards, companies will need to ensure they produce a set of comparative accounts for 2018. The new standard brings all leased assets onto the company’s balance sheet, giving a more complete picture of a business’s financial commitments. It will therefore incur a corresponding liability for future rental payments. Businesses will need to ensure they report their liabilities (rental payment arising under the lease) and their asset (the right to use the leased asset). This is relatively straightforward if they are able to measure these two values and account for them in a consistent and simple manner.

READYING YOUR BUSINESS FOR THE NEW LEASE ACCOUNTING STANDARDS: ■ Review and assess your business’s current lease landscape – volume and types of vehicles, what data you have available and where there are gaps, what accounting, tax and process-related challenges you have. ■ Develop a functional project management team to coordinate activities and resources. ■ Build an implementation plan – consider the different business units within your organisation, file types, IT systems, languages and geographies. ■ Last, but probably most importantly, determine if your current IT infrastructure can support compliance and produce the right reporting outputs. (Source: Bynx Fleet)

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2018

I AM CONFIDENT MEMBERS CAN ADD EVEN MORE VALUE BY HELPING CUSTOMERS WITH THEIR REPORTING REQUIREMENTS GERRY KEANEY, BVRLA Called the ‘right of use’ model, the final version includes some major simplifications which mean that short-term hire vehicles, informal vehicle extensions and ancillary leasing services (e.g. maintenance) do not have to be reported. It also gives companies the option to report leases on a portfolio level rather than individually. Trade body the British Vehicle Rental and Leasing Association (BVRLA) is confident its members will be able to adapt their business processes to help customers with financial reporting as required by the International Accounting Standards Board (IASB) new standard (IFRS 16 Leases). Bringing leased vehicles onto the balance sheet will also not erode the

key benefits of leasing, according to BVRLA chief executive Gerry Keaney. “Vehicle leasing’s main value [includes] sheltering companies from the risk of fluctuating vehicle values, providing them with extra flexibility and purchasing power and freeing-up precious working capital that would otherwise have been spent buying an asset,” he said. “Our members already advise customers on how to reduce fleet costs and emissions and I am confident they can add even more value by helping them with their reporting requirements.” Nevertheless, it will inevitably impose a new reporting burden. Affected companies should already be preparing for the new rules by consolidating lease data so that calculations can begin. Even though they have until 2019, compliance will require look back reporting for 2017 and 2018. Creating a centralised, electronic repository of all vehicles leases should be a priority. The top challenges are collecting the necessary data on all vehicle leases, having centralised, electronic storage and instituting processes to evaluate quarterly adjustments for the balance sheet, alongside profit and loss statements. Things as simple as contract revisions and restructures will now need a new treatment.

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LEGISLATION SALARY SACRIFICE

SALARY SACRIFICE – SEPARATING FACT FROM FICTION

FACT ✔ Salary sacrifice schemes can be terminated if an employee leaves

Do sacrifice schemes still constitute an attractive perk for employees and have the benefits disappeared for employers?

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here do you stand on salary sacrifice car schemes? The schemes, where employees exchange some of their salary for a non-cash benefit-in-kind (BIK), such as a car or a mobile phone, have proved popular with thousands of companies and their staff.

However, Chancellor of the Exchequer Philip Hammond announced in his 2016 Autumn Statement that most salary sacrifice schemes would be subject to the same tax treatment as cash income from April 2017. Ultra-low emission cars (ULEVs – CO2 emissions up to 75g/km) are exempt under the new rules,

while all car arrangements which were in place before April 2017 are protected until April 2021. However, there are a number of myths, half-truths and plain old points of confusion about what these measures mean for companies and their staff. We sort the fact from fiction alongside and below.

FICTION

✘ Changes put an end to the reduction in employers’ class 1 NI As employees give up part of their pay in return for a non-cash perk, one benefit of salary sacrifice is that it reduces their overall taxable pay, which, in turn, lowers the amount they pay in tax and National Insurance (NI). For employers, this means they do not pay Class 1 NI contributions on the amount the employee sacrifices. This continues to be the case for all cars. However, since April 2017, employers’ Class 1A NIC costs for non-ULEVs have been based on the higher of the annual salary sacrifice or the benefit charge. This increases the Class 1A charge if the annual salary sacrificed is greater than the benefit charge, which would offset the reduction in Class 1 costs.

The salary sacrifice scheme for a vehicle will be terminated if an employee leaves a business, but there will usually be an option to buy the car outright. Most schemes includes risk mitigation for the employer, including voluntary leaver, terminal illness and redundancy cover, so the lease simply ceases on the last day and the car is collected. Scheme protection can be either in the form of an insurance policy, an upper limit on early termination charges, or the operation of a contingency fund within the scheme, funded by a slight increase in rentals to cover such eventualities.

✘ Salary sacrifice will be abolished in 2021 The Treasury has stated that all car salary sacrifice contracts agreed up until April 5, 2017 will be ring-fenced at current rates until April 2021. The Government has, in effect, clarified the rules for the foreseeable future and has definitely not announced any end to this type of scheme.

✘ Taxes go up for all employees Experts believe that approximately 50% of drivers would see only a minimal tax increase – in many cases as little as £1 a month. If a driver has a monthly salary sacrifice of £400 and a car benefit of £370, there would be a tax saving on £30 per month under the old rules because they would only be paying tax on the benefit. For a basic rate taxpayer this equates to a tax saving of £6 a month. Under the new rules, they will now be taxed on the higher amount, so the car would cost an extra £6 a month. However, if the figures were reversed and the BIK was £400 with a salary sacrifice of £370, they were already paying tax on the higher amount, so there would be no cost increase.

SALARY SACRIFICE AT A GLANCE ■ Salary sacrifice car schemes are fully HMRC approved. ■ The legislative changes came into effect from April 6, 2017, for vehicles ordered from this date. All agreements prior to this date are protected until April 2021. ■ Ultra-low emission vehicles (ULEVs – CO2 emissions up to 75g/km) are exempt from the changes.

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■ Schemes still deliver employers’ Class 1 National Insurance savings, which employers can still realise dependent on the agreed set-up of the scheme. ■ Salary sacrifice is still effective for a wide range of cars – not just ULEVs. ■ Salary sacrifice car schemes remain a powerful benefit for attracting and retaining talent.

■ Salary sacrifice cars are still attractive on a like-for-like basis compared with retail alternatives. ■ You can no longer say which cars will be the most cost-effective based solely on CO2 emissions because there are other significant impacts such as insurance cost, fuel type, amount of discount achieved and the driver’s tax rate.

2018 7


LEGISLATION WLTP TESTING

NEW EMISSIONS RULES ARE MORE THAN JUST HOT AIR As NEDC testing prepares to make an exit, operators must be ready for impact of WLTP

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hen small-to-medium enterprises (SMEs) operate vehicles, they are typically taxed under ‘pay to pollute’ legislation, but the way that pollution is measured is undergoing a fundamental change. The emissions of all new cars are measured in a standard way throughout Europe and the results can then be used as the basis for taxation to encourage the use of less-polluting cars. In the UK, the focus is carbon dioxide (CO2), which is used to calculate Vehicle Excise Duty (VED) and company car tax (CCT), but the tests also measure a range of other pollutants that harm health, such as particulates and oxides of nitrogen. The reason for changing the test is apparent every time drivers visit the fuel station to fill-up. Real-world fuel economy typically bears no relation to official figures used by manufacturers, with some cars using 30% more fuel on the road than figures in the brochure suggest. The problem occurs because vehicles are tested in laboratory condi-

tions that struggle to simulate realworld use. The original tests were formulated in the 1980s and were called the New European Drive Cycle (NEDC), under which a test car would be assessed on a rolling road for around seven miles, spending 13 minutes driving the ‘urban cycle’, then a further six minutes and 40 seconds driving the ‘extra-urban’ cycle, mimicking out-of-town driving, with a maximum speed of 75mph. Despite widely recognised flaws, the tests only came under real scrutiny after global allegations of emissions cheating were levelled at manufacturers, starting with Volkswagen in the US, with claims they were finding ways to ‘fix’ the tests to deliver better official results, while doing nothing to cut real-world emissions.

Urban emissions were a particular concern. Although official figures showed average car emissions falling each year, there was little evidence of it having a real-world impact, especially in cities, where vehicle pollution is blamed for thousands of premature deaths each year. Accusations levelled at manufacturers included the extensive use of a loophole under which they turned off emissions controls ‘to protect the engine’, which could be in cold weather, under heavy load, during acceleration and when the engine was warming up. To provide a better picture of realworld emissions, new tests are being introduced during the next few years and SMEs will have to watch closely how they affect vehicle taxes. The first change is to alter the way

“WE NEED TO BE CAREFUL THE GOVERNMENT DOES NOT USE NEW FIGURES AS A ‘TAX GRAB’ AND REALIGNS CO2 TAX BAND THRESHOLDS” CAROLINE SANDALL, ACFO

MAIN DIFFERENCES BETWEEN THE TWO TEST PROCEDURES

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Source: www.wltpfacts.eu

NEDC

WLTP

Test cycle

Single test cycle

Dynamic cycle more representative of real driving

Cycle time

20 minutes

30 minutes

Cycle distance

6.8 miles

14.5 miles

Driving phases

Two phases, 66% urban and 34% non-urban driving

Four more dynamic phases, 52% urban and 48% non-urban

Average speed

21 miles per hour

29 miles per hour

Maximum speed

75 miles per hour

81 miles per hour

Influence of optional equipment

Impact on CO2 and fuel performance not considered under NEDC

Additional features (which can differ per car) are taken into account

Gear shifts

Vehicles have fixed gear shift points

Different gear shift points for each vehicle

Test temperatures

Measurements at 20-30°C

Measurements at 23°C, CO2 values corrected to 14°C

2018

vehicles are tested in the laboratory to make the results more realistic. Under the new Worldwide harmonised Light vehicle Test Procedure (WLTP), the engine is started cold and it must have run for at least 3,000kms before the test. Standard oils, tyres and fuel must be used, while the car must have a 90% full fuel tank and an additional 100kgs to represent the weight of the driver. The new test lasts 30 minutes and includes simulated gradients and a higher maximum speed of 81mph. The more stringent WLTP tests are likely to indicate higher emissions figures for new cars, but, to avoid this leading to a sudden jump in tax bills for companies, there will be a transition period. While every car model must be certified under the WLTP protocol before September, the old NEDC figures will still be used for calculating tax bills. A standard calculation will replicate NEDC figures from WLTP tests. There is still the option to carry out a retest under NEDC conditions if the manufacturer disputes the calculation (although the rules for the NEDC test have also been tightened and could lead to higher emissions figures anyway). So, what does this mean for SMEs? Last year, the Government gave a timeline for moving to the WLTP figures. VED and CCT will continue to be based on computer-generated NEDC fuel economy and CO2 figures until April 2020. However, the impact will be felt much sooner, with industry analysts Jato Dynamics suggesting the recalculated NEDC figures could lead to a jump in official emissions and fuel use of up to 18%. The full WLTP test may see a leap of more than 20%. While this reflects the real-world fuel cost of running vehicles more closely, it could also push cars into higher VED and CCT bands, in turn costing drivers and companies more.

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The Government has yet to reveal CCT rates for 2020/2021 onwards to give companies a clear idea of how costs will be affected, but industry associations are already concerned. Caroline Sandall, deputy chairman of ACFO, the fleet operators’ association, said: “Businesses want stability and clarity and for fleets that applies to vehicle-related tax. “We need to be careful the Government does not use the new figures as a ‘tax grab’ and realigns CO2 tax band thresholds to keep company car benefit-in-kind (BIK) tax revenue neutral.” Vehicle emissions tests are being taken on the road in a bid to provide better information on the real-world performance of cars. In a bid to close the gap between official vehicle tests and real-world figures for fuel economy and pollution, a new Real Driving Emissions (RDE) test has been

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introduced to measure pollutants, such as NOx, emitted by cars while on the road. RDE does not replace the WLTP laboratory test, but complements it to ensure vehicles deliver the expected economy and emissions outside the laboratory. Europe is the first region in the world to introduce such on-road testing, which will take the form of a 90-minute on-road test, with apparatus attached to the car measuring exhaust gases. Manufacturers will have to prove their cars can pass the test before they can be sold in the EU, but they

have bargained with politicians to allow more time to improve their technology before the full regulations come into force. While RDE was introduced in September last year, it will not be mandatory for all new cars to be put through RDE until September 2019. Furthermore, cars will be allowed to exceed official limits for pollutants such as NOx for several years. Now a car can exceed official limits for NOx by 2.1 times and still pass. The second stage, RDE2, allows cars to emit 1.5 times the official limit for NOx during RDE testing. This becomes mandatory for all

“RDE DOES NOT REPLACE THE WLTP LABORATORY TEST, BUT COMPLEMENTS IT TO ENSURE VEHICLES DELIVER THE EXPECTED ECONOMY AND EMISSIONS”

cars on sale from January 2021. There is a debate about how consumers can identify an RDE2 car, because the Government plans to increase taxes for diesel cars unless they meet the RDE2 standard from this year. Manufacturers will also have to fit increasingly expensive emissions control systems to diesel cars to meet the standard, which has prompted several manufacturers to announce a shift away from the fuel in some model ranges. Sandall said: “The tax rises gloss over the fact that many employees drive a company car because they need the vehicle to do their job. “The constant attacks on diesels ignore the fact that, for high mileage drivers, they are the most efficient. It will encourage fleets to consider petrol cars, but from a CO2 perspective they are not as efficient as diesels.”

2018 9


LEGISLATION ECALL

eCALL IS NEW MANDATORY SAFETY REQUIREMENT

It has been 30 years in the making and the proliferation of mobile phones may diminish its impact, but new accident-reporting technology is still being broadly welcomed

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ew safety technology that can automatically alert the emergency services of an accident is now being fitted as standard to all new cars and light vans in the UK. While some car brands such as Peugeot, Citroën, BMW, Vauxhall and Volvo have offered SOS systems on models before, this new EU legislation makes this technology, named eCall (short for emergency call), mandatory on vehicles built from this month onwards (April 1, 2018). Brexit doesn’t change anything for now as the Department for Transport (DfT) told Driving Business that until the UK has negotiated its exit from the EU, it remains a member state with all of the rights and obligations that entails and there will be no immediate changes, including rulings like adopting eCall. The eCall system sends out a signal to the emergency services to make them aware of where and when an incident has occurred, as well as which vehicle is involved. eCall can automatically send location information, to an accuracy of within five metres, as well as details on whether the car’s airbags have

10 2018

been deployed. Information like this can help give an indication of the type of incident that has taken place. The eCall technology remains dormant until an incident takes place so drivers should not have concerns around privacy or being tracked. The system can also be activated manually through a button in the vehicle, for example, if a driver witnesses an accident and wants to immediately alert the emergency services. In the UK, eCall information is handled by British Telecom (BT) who then forward it to the relevant police station. The police then digitally decode the information and computers can contact other emergency services like fire and ambulances if required. Emergency service providers may receive several calls for each incident, for which they may have to respond several times and it is

anticipated eCall will enable them to manage responses more effectively. Caroline Sandall, ACFO deputy chair, said: “We welcome eCall as an additional measure to ensure drivers are cared for at a time of great need. “However, those in charge of fleets will need to ensure drivers understand who will be responding to them and how this links into any existing services like vehicle recovery, repairs and insurance in the event of an accident.” Sandall said companies should discuss eCall with their accident management provider and agree how the process will work and to brief any drivers to make sure they understand what will happen. Matthew Avery, Thatcham director of insurance research, said: “The development of eCall has been going on for around 30 years and so the benefits of it aren’t as huge as they would have been back then as most

“THOSE IN CHARGE OF FLEETS WILL NEED TO ENSURE DRIVERS UNDERSTAND WHO WILL BE RESPONDING TO THEM AND HOW THIS LINKS INTO ANY EXISTING SERVICES” CAROLINE SANDALL, ACFO

people have access to a mobile and can call to alert emergency services. “However, anything that can help improve response times should be welcomed and for people in remote areas like the Highlands in Scotland, eCall could be very useful.” Avery said car manufacturers have not found it a technical challenge to implement eCall in cars as standard and it’s unlikely the cost of including it will bump up the cost per vehicle in a big way (less than £85). He also said eCall’s impact on insurance claims would be limited as the digital package of information sent out in a crash is not something that can be used to determine liability. Neil Greig, IAM Roadsmart policy and research director, agrees with the Thatcham view that the impact on response times is unlikely to be dramatic, but eCall still acts as a welcome addition to all new cars and light vans. He said: “While the UK has never really had a major issue with delays in awaiting rescue from the emergency services after an accident, when positioned against a background of police spending cuts, eCall does appear to offer a useful backup.”

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SAFETY LEGISLATION

OUTCOME COULD BE COSTLY IF DRIVER HAS AN ACCIDENT When an incident occurs on a work-related journey your company could face hefty fines if the court feels it has not done enough to help keep drivers safe

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he chances of one of your drivers being involved in an accident while driving on business are higher than you may think. Almost 30% of all road deaths and 22% of all serious casualties involve a driver or rider travelling for work, according to the latest Department for Transport figures. Worse still, if it turns out your driver was at fault in a serious accident you could find yourself in hot water too, especially if you haven’t taken the necessary steps to keep your drivers safe on the roads. The Health and Safety at Work Act 1974 and the Corporate Manslaughter and Corporate Homicide Act 2007 mean businesses have a legal obligation and duty of care to their company car and van drivers. The workplace extends to company vehicles and the Health and Safety at Work Act says companies “must ensure, so far as reasonably practicable, the health and safety of all employees while at work”. Companies must also ensure others are not

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put at risk by their work-related driving activities. If one of your employees is killed while driving for work, and there is evidence that serious management failures resulted in a ‘gross breach of a relevant duty of care’, your company could be at risk of being prosecuted. Businesses found guilty of corporate manslaughter and with a turnover of less than £2 million, could face a fine of £180,000 to £540,000. Larger organisations (turnover of more than £50m) face fines of up to £20m. Meanwhile, SMEs found guilty under health and safety legislation, where a flagrant disregard for the law or deliberate breach is proven, could face a fine with a starting point of £250,000. The fines extend up to £4m for a large company. There are a number of ways companies can tackle duty of care, starting with a driving-at-work policy or driver handbook, which makes it clear to drivers what their responsibilities are. Make sure staff sign to say they have read and understood the document. Some organisations check this by getting staff to

complete a multiple-choice quiz about the driver handbook/policy or by holding a workshop. Bear in mind that a driver handbook is not a one-off document. It will need updating regularly. For instance, when legislation changes. The handbook can be backed up with leaflets, posters and information in company newsletters or on the intranet. Another important aspect of duty of care is checking that drivers are fit to drive. You should check that they have a valid driving licence at the recruitment stage and periodically afterwards – generally every six months or annually, although drivers with a high number of points on their licence will need to be checked more often. Make sure drivers have regular eyesight tests or carry out spot checks to test whether they can read a number plate at the correct distance. It is an offence for a driver not to wear corrective lenses if they are needed. If caught without them, they could face a hefty fine. Assessing fitness to drive should also include an online risk assess-

ment, to work out which drivers are high-, medium- or low-risk, followed by training for those drivers deemed ‘high’ or ‘medium’ risk. Companies typically do on-the-road training for high-risk drivers and workshops or online training for medium-risk drivers. Health and safety extends to company vehicles. Make sure your vehicles are regularly inspected (include a requirement that drivers do a weekly check of their vehicle in your driving-at-work policy) and serviced according to manufacturers’ recommendations. Don’t forget that duty of care applies to employees using their own vehicle for business journeys, not just company vehicles. Get them to sign a declaration when they submit their expenses, stating that their privately-owned vehicle is serviced in line with manufacturers’ recommendations, has a valid MOT certificate and is insured for business use (not leisure and commuting). Ideally, you should check copies of these documents.

2018 11


TAX AND CHARGES COMPANY CAR TAX BANDS

BIK WILL CONTINUE TO RISE UNTIL ULEV BANDS KICK IN Electric range will play a key role from 2020/21. Then the case for adopting ultra-low emission vehicles will really come to the fore

B

enefit-in-kind (BIK) taxation continues to rise over the next couple of years for all vehicle types, including zero emission electric vehicles (see table), which peak at 16% in 2019/20. However, the system changes in 2020 when ultra-low emission vehicles (ULEVs) are treated differently with six bands relating to their electric range. Fully electric cars and plug-in hybrids with a zero emission range of more than 130 miles will have 2% BIK, while those capable of travelling up to 30 miles solely on electric will have a 14% rate, for example. It makes electric cars far more attractive from a taxation perspective. Diesel cars will be hit with a 4% supplement from April 6, 2018 (up from 3%) as the Government seeks to disincentivise their take-up. Note that the diesel supplement applies only to diesel cars that do not meet the Real Driving Emissions Step 2 (RDE2) standards, also known as Euro 6d. Cars that meet Euro 6d will be completely exempt from the supplement. However, RDE2 testing is not mandatory until 2020 for all new cars and from 2021 for every car, so it will be a few years until diesel cars become exempt from the diesel supplement. The Government has also confirmed that BIK will continue to be based on CO2 emissions derived from the old New European Driving Cycle (NEDC), which has been replaced by the Worldwide harmonised Light vehicles Test Procedure (WLTP), until 2020. Not everyone will pay the BIK figure on the P11D value of their company car, though. If an employee has the option of taking a cash alternative but selects the car, their benefit will be based on the higher of the car benefit-in-kind or the cash allowance foregone. Cars with CO2 emissions up to 75g/km are exempt from this new Optional Remuneration Arrangement.

12

2018

COMPANY CAR BENEFIT – G/KM OF CO2* % of list price

2018/19

2019/20

2020/21

2

0 1-501

5

1-502

8

1-503

9 1-504

12 13

0-50

14

1-505

15

51

16

51-74

0-50

17

60

18 19

55 65

76-94

51-75

70

20

95

75

21

100

80

22

105

76-94

85

23

110

95

90

24

115

100

95

25

120

105

100

26

125

110

105

27

130

115

110

28

135

120

115

29

140

125

120

30

145

130

125

31

150

135

130

32

155

140

135

33

160

145

140

34

165

150

145

35

170

155

150

36

175

160

155

37

180

165

160

* Car CO2 emissions should be rounded down to the nearest 5g/km In the 1-50g/km of CO2 band, the ‘electric range figure’ determines the appropriate percentage: 1 Car with electric range figure of 130 miles or more 2 Car with electric range figure of 70-129 miles 3 Car with electric range figure of 40-69 miles 4 Car with electric range figure of 30-39 miles 5 Car with electric range figure of less than 30 miles

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TAX AND CHARGES AIR QUALITY AND CAZ

CITIES GO IT ALONE WITH PROPOSALS FOR CLEAN AIR

Companies fear lack of consistency will cause confusion as one city plans to charge for HGVs, buses and taxis, another wants to add cars and vans and yet another plans no charges at all

A

ll organisations are probably aware that clean air zones (CAZs) will be introduced in five major cities (in addition to London) by 2020. Before then various proposals and initiatives are being developed by many other towns and cities across the country which are also required by law to tackle the issue of air pollution from vehicles. While proposals for the five cities will not be ratified by Government until later this year (see timetable, below), those implementing clean air zones – Birmingham, Derby, Leeds, Nottingham and Southampton – have different views on how to meet their obligations on air quality, making things difficult for companies who operate fleets in multiple parts of the country. Leeds and Nottingham want to implement a Class B CAZ which will charge non-compliant trucks, bus and taxi operators for entering designated areas of the city and surrounding areas. They are proposing a daily fee of

£100 for HGVs and buses/coaches and £12.50 for taxis, following the example set by London with its Ultra-Low Emission Zone (ULEZ), due to go live in April next year. Birmingham is considering going a step further, with a Class D CAZ that includes vans and cars within its charging policy. This would mirror the approach taking by London, which will be charging noncompliant cars and vans £12.50 a day to enter its ULEZ. At the other end of the scale is Derby, which has no intention of introducing a charging CAZ; instead the city council is focusing on alternative measures, such as cycling routes, sustainable public transport and encouraging the uptake of electric vehicles. It also wants to introduce a scrappage scheme for older diesel cars. Southampton has already introduced a non-charging clean air zone. It consists of a programme of measures to reduce emissions, including promoting ways in which people can do so, and offering incentives. Access restrictions and penalty

“LEGALLY BINDING DIRECTIONS REQUIRE A FURTHER 33 LOCAL AUTHORITIES TO UNDERTAKE STUDIES TO IDENTIFY MEASURES TO REDUCE NO2 LEVELS” CONSULTATION, PHASE ONE (COMPLETED)

PRESENT PREFERRED SOLUTION

Mid-December – End of February 2018

June 2018

CLEAN AIR ZONE CLASS OPTIONS Clean air zone class

Vehicles included

A

Buses, coaches and taxis

B

Buses, coaches, taxis and heavy goods vehicles (HGVs)

C

Buses, coaches, taxis, HGVs and light goods vehicles (vans)

D

Buses, coaches, taxis, HGVs, vans and private cars (option to include motorbikes and mopeds)

charging will be introduced as part of a mandatory CAZ in 2019. The charges will be set at levels designed to reduce pollution, not to raise additional revenue beyond recovering the costs of the scheme, says the council. However, it has not decided which vehicles will be included. For every charging CAZ, compliant vehicles exempt from charges are Euro 6 diesel and Euro 4 petrol, as well as electric and hybrid models. Following a third defeat in the High Court over air pollution, the Government has issued legally binding directions that require a further 33 local authorities to undertake studies to identify measures to reduce NO2 levels. It will also publish a supplement to

CONSULTATION, FINAL PHASE

GOVERNMENT APPROVAL

IMPLEMENTATION OF INFRASTRUCTURE

July/August 2018

September 2018

October 2018 onwards

the 2017 plan by October 5, drawing on the outcome of the authorities’ feasibility studies and plans. All city councils are considering a range of measures to assist the reduction in air pollution, including parking incentives, ULEV lanes and ‘try before you buy’ electric van schemes. They have also indicated a willingness to help fleet operators meet CAZ standards with the possible introduction of sunset clauses to allow smaller operators more time to become compliant, no-fee corridors for distribution operations inside the charging zone that only require access to the motorway, no-fee overnight deliveries, tapered charging and grants to retrofit older trucks and buses with systems to reduce their emissions.

CAZ GO LIVE 1st January 2020

COUNTDOWN TO CAZ mydrivingbusiness.co.uk

2018 13


TAX AND CHARGES CAPITAL ALLOWANCES

CAPITAL PUNISHMENT – GETTING TO GRIPS WITH ALLOWANCES

Accountants really earn their fees when they start to guide SMEs through the maze of what can and can’t be reclaimed. Some tasks take up too much management time to be viable

C

apital allowances and lease rental disallowances are two reasons you will look forward to seeing your accountant, as they are complex rules that can tie up significant amounts of management time in an SME. The concept is straightforward, as it’s a way for companies to offset their spending on equipment and machinery against tax. However, in reality, it very quickly becomes a complex web of tables and depreciation charts that are better left to specialists, as mistakes can be costly. For example, there are different rules for outright purchased and leased vehicles, while the level of allowances available can differ for every car you operate. The system changed this month, too. Previously, the standard capital allowance for company cars was 8%, so you could offset 8% of the remaining cost of the car against tax each year. However, if you operated a vehicle with carbon dioxide emissions of between 76g/km-130g/km, then the capital allowance rate leapt to 18%. Finally, if a car had emissions of 75g/km and below, then it qualified for 100% capital allowances, so you could offset the whole cost of the vehicle immediately. This generous first year allowance has become more difficult to achieve. The Government is extending the 100% allowance until 2021, but only for cars emitting 50g/km or below. The 18% banding has also tightened to cars emitting 51g/km-110g/ km, to encourage clean vehicle

14

2018

acquisition policies. If you lease your cars, then there is still legislation that is linked to emissions thresholds to consider. For a company to be able to offset the entire cost of a lease against tax, then the car must have CO2 emissions of 110g/km. This compares to 130g/km for last tax year and 160g/ km in 2013. If a car exceeds the prescribed limit, then a proportion of the rental is ‘disallowed’, so a company can’t claim that element against tax. The disallowance is currently 15%. For both capital allowances and lease rental restrictions, the rates are applied according to when the car was acquired, not the latest rules, so cars of varying ages with the same emissions could have different rules applied to them. Overall, there could be one of more than 20 potential allowance rates affecting each company car, which is why specialist help may be required in identifying just how much you can offset against tax. THE REAL COST OF ‘FREE’ FUEL One of the perks loved by company car drivers is so-called ‘free fuel’, but

“FOR A COMPANY TO BE ABLE TO OFFSET THE ENTIRE COST OF A LEASE AGAINST TAX, THEN THE CAR MUST HAVE CO2 EMISSIONS OF 110G/KM OR BELOW” the reality is that the related taxes can be more than the perk is worth. If a company pays for a driver’s free fuel, then it incurs a hefty benefit-inkind tax charge for the driver and Class 1A National Insurance contributions (NIC) for the employer, in addition to the original cost of the fuel. This often means that the perk is only value for money if the driver has particularly high private mileage. The reason ‘free fuel’ is so expensive is the ‘car fuel benefit charge’, which is used to calculate the value of the benefit provided, regardless of how much private fuel is used. For the 2017/2018 tax year, the fuel benefit charge was £22,600 and for 2018/2019 it is £23,400.

‘FREE’ FUEL COSTS FOR 130G/KM PETROL CAR 2018/2019 TAX YEAR Fuel benefit charge £23,400 Company car tax band 25% Taxable benefit £5,850 Fuel cost 119.68ppl Driver tax payable (@40%) £2,340 Driver breakeven mileage 17,200 Employer Class1A NIC £807 Employer cost of fuel (@119.94ppl) £2,339 Total cost of providing ‘benefit’ (driver breaks even) £5,486

The value of the taxable benefit is then calculated based on the car’s CO2 emissions and its related tax band, in the same way company car tax is worked out. For example, a petrol car emitting 120g/km of CO2 falls into the 25% tax bracket for the 2018/2019 tax year. Therefore, a driver receiving free fuel pays tax on 25% of £23,400, or £5,850. Tax is paid at the driver’s basic rate, typically either 20% or 40%. So, a 40% taxpayer would pay £2,340 in tax for receiving ‘free fuel’. In addition, the company would pay Class 1A National Insurance Contributions, currently 13.8%, on the same value of the benefit (£5,850), which would be £807. For the driver to break even, assuming their car achieved 40mpg, they would need to travel 17,200 miles, while to justify the Class 1A NIC cost as well, the driver would need to cover about 23,000 private miles a year. The fuel benefit charge means companies need to consider on a case-by-case basis whether to offer a private fuel benefit to employees and consider whether there are more cost-effective ways of providing a perk.

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TAX AND CHARGES VED BANDS

ROAD TAX RULES BECOMING INCREASINGLY COMPLEX

Fuel types and the age of vehicles will each play a part in determining what you have to pay

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oad tax is becoming more taxing for SMEs to manage, particularly for diesel cars, as new environmental rules come into force. There are now several potential ways of calculating road tax, or vehicle excise duty (VED), dependent on how recently you acquired your vehicles and the types of fuel they use. Since April last year, when new cars are registered there is a one-off first-year tax where the amount paid is based on a car’s carbon dioxide emissions, with costs increasing in bands from £0 (for electric cars) to £2,070 as emissions rise. For every subsequent year of the car’s life, most cars pay the same standard rate of tax, currently £140, with a £10 discount for alternative fuel vehicles including hybrids, bioethanol and liquid petroleum gas-powered cars. There are two exceptions. First, the standard tax rate for electric vehicles is set at zero. Second, if a car has a list price of more than £40,000, then there is an additional £310 to pay, including for electric vehicles, while alternative fuel vehicles get a £10 discount. This supplement is payable for five years before dropping to the standard rate (see table). For the current 2018/2019 tax year the tax rules for diesel cars change. If you acquire a new diesel, then unless it meets the highest European emissions standards based on an on-the-road test (RDE2), the first-year rate of tax will be paid on the VED band above the car’s actual emission level. This could potentially add hundreds of pounds to the first-year tax bill for companies, dependent on which car drivers receive. For example, for a non-RDE2 diesel emitting between 151-170g/

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TAX YEAR 2018 TO 2019 CO2 emissions Standard (g/km) rate

0 1-50 51-75 76-90 91-100 101-110 111-130 131-150 151-170 171-190 191-225 226-255 Over 255

£0 £140 £140 £140 £140 £140 £140 £140 £140 £140 £140 £140 £140

km of CO2, the tax bill for a newlyregistered car has risen from £500 to £800. It is important to check which band a diesel car falls into because the increase between bands is not equal. In some cases a band increase is just £20, in others it is £500. The additional cash will go towards the £220 million Clean Air Fund to support the implementation of local clean air plans. For cars registered between March 1, 2001 and March 31, 2017 there is a separate standard rate that is the same for petrol and diesels, with a £10 discount for alternatively-fuelled cars. KEEP A CLOSE EYE ON NIC COSTS When employers provide the benefit of a company car or fuel to their staff for private use, then they have to pay Class 1A National Insurance contributions (NIC) on the value

First year rate

£0 £10 £25 £105 £125 £145 £165 £205 £515 £830 £1240 £1760 £2070

First year rate diesel vehicles (non-RDE2) £0 £25 £105 £125 £145 £165 £205 £515 £830 £1240 £1760 £2070 £2070

provided. For the tax year 20182019, the rate is 13.8%, which makes it a significant aspect of business costs when formulating employee benefits. The tax cost is calculated in the same way an employee would identify their own company car tax bill, based on a percentage of the value of the car, according to its CO2 emissions. For example, if the taxable value of a company car was £6,500, then the Class 1A NIC would be 13.8% of that, or £897. The value of the fuel benefit uses the same percentage calculation for the company car but based on a standard figure, which is £23,400 for the 2018/2019 tax year. At the end of the tax year you will usually need to submit a P11D form to HMRC for each employee you’ve provided with expenses or benefits. A P11D(b) form tells HMRC how much Class 1A NIC you need to pay

VED BANDS AND RATES FOR CARS REGISTERED ON OR AFTER MARCH 1, 2001 BUT BEFORE APRIL 1, 2017 (TAX YEAR 2018 TO 2019) CO2 emissions Standard (g/km) rate Up to 100

£0

101-110

£20

111-120

£30

121-130

£120

131-140

£140

141-150

£155

151-165

£195

166-175

£230

176-185

£250

186-200

£290

201-225

£315

226-255

£540

Over 255

£555

STANDARD VED RATES (YEAR 2 ONWARDS) Fuel type

Up to and Above including £40,000* £40,000

Petrol or £140 diesel £0 Electric Alternative £130 fuel

£450 £310 £440

* for five years, then reverts to standard rate

on all the expenses and benefits provided. You can deduct and pay tax on most employee expenses through payroll as long as you’ve registered with HMRC before the start of each tax year (April 6).

2018 15


TAX AND CHARGES EV GRANTS

GOVERNMENT WANTS TO PROMOTE EVs AND ULEVs

Here’s some of the lengths it will go to the encourage you to reduce CO2 and NOx emissions

T

he company car and van market has been in a permanent state of change for the past few years with one challenge after another to deal with. Businesses with vehicles have been on the frontline in responding quickly to Government policy to tackle the twin environmental challenges of climate change and poor air quality. The goal to improving both CO2 emissions and NOx emissions is the holy grail for policymakers. The current strategy is to promote the take up of electric vehicles (EVs) or ultra-low emission vehicles (ULEVs). EVs represent a great opportunity for saving on both CO2 and NOx emissions, as well fuel costs, but don’t work for every vehicle replacement or fleet application. For high mileage drivers doing big motorway miles, a clean modern diesel or efficient petrol vehicle may be the best option, although plug-in hybrids are increasingly viable for the company car driver. In our experience of helping busi-

nesses, though, there is an increasing number of instances where an electric alternative exists and would be cleaner and cheaper to run. While there still is a price premium for EVs, our rule of thumb is that for every 1,000 miles driven, each vehicle sees £100 in fuel savings which is significant. To identify vehicles that could be replaced with an EV, look at those vehicles driving between 60-80 miles per day. Ironically, a very low mileage vehicle may not deliver the same wholelife cost savings unless other incentives are in place such as an exemption from the London Congestion Zone charge. The table alongside shows a 36-month lifetime fuel cost comparison between conventional and electric vehicles driving 45,000 miles. The pure battery electric vehicle (BEV) has clearly lower running costs which will usually offset the higher purchase cost. Plug-in hybrids (PHEVs) are increasingly under the spotlight in terms of their ability to deliver significant savings in the real world.

GRANTS AND WHO PROVIDES THEM PLUG-IN CAR AND VAN GRANTS These grants are applied directly at dealerships, a discount of 35% (up to a maximum of £4,500) of the price of a new plug-in car is currently available. For electric vans, it’s 20% (up to a maximum of £8,000). HOME CHARGE SCHEME The Home Charge scheme provides support towards the cost of an electric vehicle charger at home. The grant is a 75% contribution towards the cost of one chargepoint and its installation up to a maximum of £500 (including VAT) per household/eligible vehicle.

16 2018

FUEL COSTS OVER THREE YEARS

While their NEDC official CO2 figures make them a great company car choice, attracting low company car tax bandings, the new WLTP cycle, which represents a more realworld scenario, may rebalance their CO2 ratings and make them increasingly unattractive (see pages 8 and 9). On fuel, significant savings are only available if a PHEV uses electrical power for most of its journeys.

Anecdotal evidence suggests that not enough organisations are ensuring PHEV drivers have access to home or work charging, which is leading to poor fuel real-world efficiency. This can lead to higher fuel costs than an equivalent clean diesel for higher mileage drivers. TIM ANDERSON Energy Saving Trust

(VISIT WWW.GOV.UK/GOVERNMENT/ORGANISATIONS/OFFICE-FOR-LOW-EMISSION-VEHICLES FOR MORE INFO) WORKPLACE CHARGE SCHEME Businesses can apply for a grant of £300 for each chargepoint up to a maximum of 20 across all sites. You have to apply for a voucher from the Office for Low Emission Vehicles. ON-STREET RESIDENTIAL CHARGING SCHEME Homes with no off-street parking can be problematic for EV owners needing to charge at home. The Office for Low Emission Vehicles is working with the Energy Saving Trust to provide a grant for local authorities to place chargepoints in streets and car parks for residents wishing to buy an EV.

SCOTLAND AND LOCAL INCENTIVES In Scotland additional support is available through the provision of interest-free loans for the purchase of Ultra Low Emission Vehicles (ULEVs). In addition, further support is available for charging infrastructure through the Chargeplace Scotland scheme. Visit the Energy Saving Trust Scotland website for more details. As cities respond to the air quality challenge and the Government continues to develop its national air quality plan, the concept of Clean Air Zones is emerging as a way of focusing the effort on areas where the

problems are greatest. In some cases, these will lead to chargeable zones for all but the cleanest vehicles. This may not affect car and van fleets at this time but there are certainly moves in cities to encourage the uptake of electric vehicles. ADVICE AND SUPPORT Integrating electric vehicles into your business can be complex. The Energy Saving Trust is there to help with a range of free-of -charge guides, online tools and fleet reviews. These are available to fleets of most sizes so to find out more, please visit the Energy Saving Trust website.

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Advertisement feature

Reasons to outsource Tap into expertise, knowledge of best practice and our experience

F

leet can often be complicated by internal and external challenges such as legislatives changes, dealing with suppliers and safety issues. Many organisations distribute the various elements of fleet management between finance, human resources, health & safety and procurement, but if a fleet is managed poorly it can become a burden on your business and cost you time and money. Short of your business investing in an in-house fleet manager, it can be difficult to stay in control. With outsourcing you can access the fleet management company’s specialist knowledge and its experience of

Emma Hardwick Outsourcing Team Leader

managing fleet clients. Its staff will also be up-to-date with the latest legal requirements and industry best practices. This can result in improved efficiency

across your business, reduced overheads, new products or a new service. You would also be utilising and maximising industry experts. This is why outsourcing is a great solution for fleet. You can outsource driving licence checks, MID updates, issuing and renewing fuel cards, MOT and service reminders and much more. By outsourcing your fleet administration we at TCH Leasing can take all of these tasks on for you, freeing up staff to carry out other core duties. With us on hand we can take this burden off your business and manage your fleet effectively, with our dedicated customer service team on hand to assist.

For more information or to discuss how TCH Leasing can provide any of these services please contact us on outsourcing@tchleasing.co.uk or visit website www.tchleasing.co.uk

Company an any yCar

IN ACTION

PROVING GROUND JUNE 12-13 2018 MILLBROOK

To find out more about CCIA and register to attend, visit:

companycarinaction.co.uk

DRIVE: More than 300 cars unaccompanied LEARN: About new technologies COMPARE: Latest models back-to-back MEET: Key fleet manufacturer contacts


BEST PRACTICE SAFETY AND RISK MANAGEMENT

BE REALISTIC IN WHAT YOU EXPECT DRIVERS TO ACHIEVE Accidents are not necessarily a one-way street in which the driver is the one at fault. It could be the company culture is not helping

R

oad accidents can be a costly business for a company. As well as the direct expense of repairing the vehicle, which is usually covered by insurance, there are numerous indirect costs and effects which can have far-reaching implications. The International Loss Control Institute says that for every £1 an insurer pays out, the uninsured losses are between £8 and £53. These additional costs can include: ■ Damage to, or loss of, product and raw materials. ■ Losing key personnel due to injury or ill-health which can be critical to meeting contract deadlines. ■ Damage to company reputation due to accidents and enforcement action which can lead to loss of new or repeat business or loss of new investment. ■ Renting replacement vehicles while the company vehicle is off the road being repaired. ■ Higher insurance premiums or insurance cover being refused. ■ Damaging workforce morale and affecting productivity.

■ Sick pay. ■ Extra wages, overtime working and temporary labour. The ideal scenario would be to avoid these implications by eliminating accidents and vehicle damage entirely, but this is unlikely to ever happen. However, there are steps that a company can take to keep collisions to a minimum. ASSESS, ANALYSE AND UNDERSTAND THE RISKS The first step is to look beyond the driver and at the culture of the business as the driver is sometimes not the sole party responsible for collisions. For example, one of the most common types of collision is hitting a third party in the rear. The underlying reasons why this has occurred could include the driver travelling too quickly, they may be fatigued, they may be distracted, or they may be under the influence of drink or drugs. However, there may be a contributing reason why they are behaving that way: they may be driving too fast because there is a business reason to do so, such as an unrealistic delivery schedule, or they may

“A COMPANY CAN LOOK TO IDENTIFY TRENDS OR POTENTIAL ISSUES. AFTER ALL, IF YOU DON’T KNOW WHAT THE PROBLEM IS, HOW CAN YOU SOLVE IT? ” 18

2018

be a salesman getting to the end of the month and they haven’t hit their target. In those situations, the underlying reason is an operational issue and the company should look to address this before it focuses on the driver. Any safe driving policy also needs to dovetail into the needs of the business, as the first priority of a fleet is to be fit for purpose operationally. This safety/operational balance will be different in every organisation, but it should create an environment in which drivers can drive safely if they choose to do so. Once this is in place, a company can look at any accidents which have happened to identify trends or potential issues. After all, if you don’t know what the problem is, how can you solve it? A company can do this in a number of ways, such as operating a robust incident reporting process, collecting data from a telematics system and carrying out on-road driving assessments. Road risk experts recommend that all incidents – no matter how minor – such as a clipped door mirror or reversing into a post, are recorded to provide a comprehensive overview. Driving licence checks can help a company identify drivers who regularly speed, while many businesses use telematics technology which records data of how a vehicle is being driven, such as whether and how often a driver is speeding, accelerating or braking too sharply. While all of this information is important to identify trends and build up profiles of

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“IF A DRIVER IS DOING 40,000 MILES A YEAR OR MORE, THEN AN OBVIOUS WAY TO REDUCE THEIR RISK IS FOR THEM TO DRIVE LESS� drivers, a company should also debrief employees to find out the reasons behind their behaviour. Is it just bad driving, or is there an underlying management reason why they are driving like that? One of the latest developments in telematics is the integration of the technology with dashcams. This provides another layer of information because, as well as identifying events such as harsh braking, it gives context which the data alone cannot. For example, the camera footage can show that the driver may have braked sharply to avoid hitting a child who had stepped out in the road and not just through poor driver behaviour. CONTROL MEASURES Once the risks have been identified, a company can choose which ones it wants to manage and then ask itself can it eliminate it, can it substitute it with a lesser risk (both usually management initiatives), or can it reduce it? For example, if a business has a driver doing 40,000 miles a year or more, then an obvious way to reduce their risk is for them to drive less. However, this is difficult to do unless the management system is changed to allow it and sometimes that is not operationally practical for a business. It can then look at other initiatives it could introduce. Could any meetings be done through tele- or video-conferencing instead of faceto-face? This is obviously not practical for a delivery driver, but in those instances a company could then look at if their van is the right size. If it was bigger, then they may not need to return to the depot so often, meaning their mileage would fall. The biggest risk for high mileage drivers is fatigue, so a company could introduce some robust fatigue management policies and

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make sure they are adhered to. Recording, analysing and investigating collision data also means a company can put employees through targeted training programmes, ensuring the specific issues are addressed. For example, if a vehicle’s bumper is continually being scuffed on a wall as it is leaving the depot, then a driver could undergo training for low speed manoeuvring. Analysing data will also identify if vehicle technology should be introduced, such as parking sensors to help prevent drivers reversing into stationary objects. If hitting a third party in the rear is a regular occurrence, then a company could investigate having autonomous emergency braking (AEB) fitted to vehicles. Road safety research institute Thatcham has found that vehicles equipped with AEB have 38% fewer rear-end collisions than vehicles that do not have the technology. MAINTAIN, MONITOR AND REVIEW Once a road risk management policy is created, this should be communicated to drivers, with advice and information drip-fed to them on an ongoing basis to ensure employees remain aware of what they should be doing. Companies should draw up a list of key performance indicators to ensure they monitor driver behaviour. These should include the number, types and severity of crashes, and this information should be analysed and investigated to encourage continuous improvement. Once one area of risk has been reduced sufficiently, the same process can be used for lesser risks, which mean companies can gradually improve safety across the board. A number of business who use telematics have found that they can use the data it produces to incentivise drivers to improve. One common way is to publish leaguetablesofthebest-performing drivers, with bonuses available to reward employees. Companies should also be prepared to update their processes to reflect changing legislation or technology, such as the growth in mobile phones, as well as whether the way a company does business evolves.

2018 19


BEST PRACTICE ENVIRONMENT

WHICH FUEL IS RIGHT FOR YOUR BUSINESS? Small businesses can now choose from more types of fuel than ever before. We look at the most common options

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usinesses are increas­ ingly concerned with their environmental impact, their green­ house gas emissions and the tax implications and running costs of the vehicles and powertrains they and their drivers choose. Traditionally, diesel has dominated in business vehicles, but since the Volks­ wagen emissions­cheating scandal and subsequent Government tax changes, new diesel cars have fallen in popularity, with a 17% year­on­year decline in 2017. By contrast, overall registrations of petrol vehicles were up 8.5% and alternative­fuelled vehicles (AFVs) were up 23.9% in the same month. We outline some of the fuel options available for businesses and highlight the potential benefits, and problems, the fuels could create for them and their drivers.

PETROL etrol has enjoyed something of a resur­ gence as, aside from recent political issues, they have benefited from improve­ ments in technology, with smaller capacity, fewer cylinders and the addition of turbo­ chargers. Although still higher in CO2 emissions than equivalent­sized diesels, manufacturers have been able to narrow the gap. Some lower­medium cars equipped with petrol engines now offer CO2 emissions below 100g/km, but there are concerns that some of these smaller turbocharged engines will not perform as well when the official test cycle changes to better reflect real­world driving conditions (see page 8).

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STRENGTHS ■ Widely available ■ Usually more suitable than diesel for smaller cars and low mileage

WEAKNESSES ■ Worse fuel economy than diesel ■ Higher CO2 emissions than diesel

DIESEL

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iesel engines have long dominated business cars because they give better fuel economy than petrol engines. However, the real drive toward diesel was prompted by a taxation change in 2002, when benefit­in­kind (BIK) tax on company cars switched from being based on business mileage to CO2 emissions. This meant many petrol drivers could reduce their BIK tax liability by switching to diesel. Although diesel engines’ CO2 emissions are lower than petrol, they are higher in particu­ lates and nitrogen oxides (NOx), which are known to have an impact on local air quality and exacerbate breathing problems. To comply with European emissions rules, manufac­ turers have introduced technology to remove these. One such technology is diesel exhaust fluid, or AdBlue, which is stored in a tank and needs refilling throughout the car’s life. The fallout from the Volkswagen emissions­

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cheating scandal, which centred on artificially reducing the amount of NOx its cars were emitting during testing, has turned the spot­ light on diesel emissions and raised aware­ ness of gases other than CO2. Following the scandal, the Government delayed the lifting of the 3% supplement on BIK tax for diesel company cars, and it will now increase the supplement to 4% in April for vehicles that do not meet the latest emissions limits. Businesses may face other additional costs from using diesel vehicles. Some local author­ ities, such as Westminster Council in London, are trialling or considering higher parking fees for diesel drivers, while the mayor of London is set to impose an additional fee on top of the congestion charge on older vehicles.

STRENGTHS ■ Widely available; more fuel-efficient than petrol engines ■ Ideally suited to high-mileage motorway routes

WEAKNESSES ■ Higher maintenance costs than petrol ■ NOx gas emissions higher than most petrol engines

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HYBRID hether ‘full’, which can drive the vehicle on electric power alone for a limited distance, or the much rarer ‘mild’, where the electric motor merely assists the engine when accelerating to save fuel, hybrids often have lower CO2 emissions than diesel cars of the same size. Crucially, they do not attract the supplement on BIK tax for diesel company cars. Around town, hybrids are very efficient, as stop-start and low-speed driving conditions create the optimal environment for the powertrain.

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Much of the time, the car will drive on electric power only, with frequent braking and stops recapturing energy to charge the battery. However, if hybrids are used mainly on motorway journeys, the fuel consumption is less than that achieved in the test cycle, as the engine charges the battery to maximum capacity with electricity that is hardly used until the car has returned to urban roads.

STRENGTHS ■ Zero tailpipe emissions at low speed and for short distances ■ Works efficiently in urban environments

WEAKNESSES ■ Motorway fuel economy falls below expectations ■ Heavier than an equivalent petrol car

PLUG-IN HYBRID STRENGTHS

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ften just known by their acronym, PHEVs take the hybrid format a step further, with a larger battery to cover greater distances in electric mode, and reaching higher speeds. Typically, PHEVs can cover 15-35 miles in EV-only mode. In mixed driving conditions, a car with a potential EV range of about 30 miles will cover about 20 before the engine is required to take over. For people mainly making short trips, with charging facilities at their destinations, these cars are perfect. The engine is rarely required and drivers will see mpg figures in the same 100-plus range as

advertised in the official figures. However, businesses whose drivers choose PHEVs for the BIK tax benefits even though most of their driving may be on a motorway are urged to be cautious. If drivers are reluctant to stop and plug in the car to recharge, relying on the engine and shorter refuelling stops to keep them going, those fuel economy figures will plummet.

BATTERY EV

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■ Zero emissions ■ Lowest tax rates ■ Lower maintenance and fuel costs

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WEAKNESSES ■ Must be charged frequently to realise savings on fuel ■ Seen as a BIK tax loophole

HYDROGEN FUEL CELL

olume is still low – just 13,597 ‘pure’ EVs were registered in 2017, compared with 71,522 petrol-electric hybrids – but growing fast (up 32.5% in 2017). Battery chemistry continues to evolve, allowing manufacturers to offer better ranges and faster charging. Nissan says the 2019 version of the Leaf, the UK’s most popular pure EV, will travel more than 225 miles. The new Jaguar I-Pace has a claimed range of 298 miles, and Jaguar says it can be charged to 80% in just 45 minutes using a DC Rapid Charger. From a business point of view, pure EVs should have lower servicing, maintenance and repair costs than other powertrains, because there are fewer moving parts. The cost per mile of electricity is also lower and the charging network continues to improve, with the Government announcing a £400 million charging infrastructure fund in the latest Budget.

STRENGTHS

■ Zero emissions running for longer periods and at higher speeds ■ Potentially much cheaper to run than internal combustion engine ■ No ‘range anxiety’ ■ BIK tax savings

WEAKNESSES ■ Range still less than petrol/ diesel ■ Charging takes longer than refuelling

ydrogen fuel cells are not ready for mass adoption by Britain’s SMEs, but potentially they will be the ‘greenest’ way to drive. The technology works, with water the only tailpipe emission, but the cars are expensive and the infrastructure is lacking. For now, hydrogen is only really feasible for organisations near one of the few refuelling stations. Fuel costs are similar to petrol and diesel and a car would go 300-plus miles on a tank, with refuelling taking a few minutes.

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STRENGTHS ■ Electric car performance with range similar to petrol car ■ Refuelling takes minutes rather than hours

WEAKNESSES ■ Few hydrogen fuel cell vehicles available ■ Sparse refuelling network ■ Vehicles currently expensive

2018 21


BEST PRACTICE FLEET MAINTENANCE

MAINTENANCE BEST PRACTICE

Having a vehicle off the road may result in hundreds (possibly thousands) of pounds in direct and indirect costs. We look at how to optimise your SMR regime

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aving a vehicle off the road for servicing, maintenance or repairs (SMR) – whether the work is scheduled or not – can be costly for a business. As well as the expense of repairs or servicing, it can impact profitability, cause disruption, create additional administration time and could potentially damage a business’s relationship with a customer. The Freight Transport Association says many operators put the cost of having a vehicle off the road as being in the hundreds, if not thousands, of pounds per day. But there are ways to minimise the impact maintenance can have on a company’s operation. Here we look at some of the issues and ways a fleet can optimise its service and maintenance regime. The first step to minimise the risk of unwelcome maintenance or repair bills is to select the right vehicle. Instead of acquiring a new one simply because it is the same size or brand that the company has always operated, it should consider a few simple questions. What does widely available vehicle reliability data say? This will give insight into any expected issues into the vehicle’s life. Will the vehicles be overworked? Can they carry enough weight? What about fuel type? Right-sizing is a strategy designed to match the payload needs of a company to the specification of a specific model of van as closely as possible, delivering benefits in a wide range of areas from fuel efficiency to reduced environmental impact. Acquiring the right vehicle

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Pre-use checks can help spot possible faults before the vehicle hits the road. Checking basic things like fluid levels, tyres and general vehicle condition can prove useful but, to be effective, the checks must be reported and handled correctly as part of a pro-active maintenance regime. If faults are logged, a company can build a database of common faults which can then be used in a preventative maintenance programme. Pre-use checks

Using information gained from past experiences and listening to advice from your garage can ensure a company’s vehicles do not have to go in for SMR work more often than they need to. For example, if the company gets through a lot of brake pads, then it might be worth replacing them at a service before they are fully worn to prevent extra downtime later in the year. Preventative maintenance

For businesses which lease their vehicles, their leasing company usually offers the choice of upgrading their agreements to include full maintenance at a fixed price. These agreements typically include servicing and MOT tests, maintenance and mechanical repairs and breakdown assistance and recovery. Leasing companies say these deals provide a business with better budget control and no unexpected invoices, while the outsourced Choosing a leasing agreement with maintenance included

servicing and repairs free up a customer’s time and resources. However, opting for an inclusive maintenance deal means a company is paying up front for work that isn’t yet needed and which may never be needed. Some companies find removing all future budgeting uncertainty and the threat of unexpected bills to be a comforting thought and, for those organisations, maintenance-inclusive contracts can be a viable and sensible option. However, fleet management specialist CLM estimates that a company could achieve savings of just more than £800 by opting for pay-as-you-use maintenance compared to including it in their leasing contract. Modern vehicles tend to be far more reliable than those manufactured a number of years ago, and most need very little work in the first couple of years of their life. Service intervals have also lengthened, with some vehicle servicing schedules reaching as much as 20,000 miles. But there is no one-size-fits-all solution: what a company decides to do usually depends on how risk averse it is. If a company decides to manage its own maintenance, then a choice it faces is should it use franchised dealers or independent garages for its service and maintenance requirements – or both? Traditionally, it is perceived that independent garages provide cost savings as they don’t have large overheads, while franchised garages provide greater peace of mind – not least that manufacturer-approved Independent or franchise dealer?

parts will be fitted in order to maintain warranties. Consequently, many companies will ensure they take vehicles to franchised garages for the duration of the warranty before heading to more cost-efficient independent outlets once that runs out. Despite this trend, a vehicle owner is not obliged to get their car or van serviced by a franchised dealer during the warranty period. However, to ensure it is still covered by the warranty, they must get it serviced according to the manufac-

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“A VEHICLE OWNER IS NOT OBLIGED TO GET THEIR CAR OR VAN SERVICED BY A FRANCHISE DEALER DURING THE WARRANTY PERIOD” are known for having a culture of long operating hours and weekend working to reduce the impact of vehicle off-road time on customers’ work. Booking ahead is also important for items like new tyres. Michelin says the number of car and van tyre sizes and ranges it has available has doubled from 400 to 800, due to a combination of tyre technology developments and a wider variety of models requiring a greater range of load and speed ratings. It is unrealistic to think that every dealer will have every single tyre line in stock at all times, and this may mean that drivers who arrive unannounced can be inconvenienced, either by having to fit a second or third choice tyre or, even worse, having to return at a later date. Replacing or repairing windscreens used to be a relatively simple and quick process. However, the spread of advanced driver assistance systems (ADAS) and their use of windscreenmounted sensors means this may no longer always be the case. Safety technologies such as autonomous emergency braking (AEB) and lane-keeping assist use radar, laser or camera sensors which are often located behind a car’s windscreen. The same applies to more convenience-oriented features such as adaptive cruise control. This means that as well as replacing a windscreen, a supplier also needs to recalibrate the sensors to ensure the safety features work. The major glass replacement and repair companies have different methods to do this, meaning it is essential to find out which supplier best meets your requirements. Windscreens

turer’s recommended schedule and criteria using only manufacturerapproved parts. A company must also keep records so it can demonstrate to the manufacturer that servicing was undertaken to their requirements in case a warranty issue arises. Analysis last year by Who Can Fix My Car? found that main dealers were significantly more expensive for certain types of work. On average, independent dealers were 18% cheaper, but the results also showed up large price differen-

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tials between the kinds of work carried out. For relatively simple work, such as MOT tests and servicing, franchised dealers were slightly cheaper. But for work where more intensive labour was required, it is often significantly cheaper to go to an independent: brake and exhaust work was quoted an average £221 by franchise dealers compared with £156 at independents. Separate analysis by consumer magazines Which? and What Car? Found that independent garages

also enjoy higher customer satisfaction ratings than franchised dealers. Companies and drivers should book appointments for servicing and maintenance work in advance to avoid unnecessary waiting times and guarantee parts availability. Franchised dealers are increasingly offering time slots and extended SMR for commercial vehicles, and independent garages and fast-fits Book ahead

2018 23


BEST PRACTICE RENTAL

RENTAL: YOUR FLEXIBLE FRIEND Using vehicle hire correctly can save your company money and keep employees mobile. Here we look at the options available

CAR CLUB WHAT IS IT? Car club vehicles are typically available for immediate hire for any period of time from an hour up to 28 days or more. These can be rented online and then unlocked and driven at any time using key pads and swipe cards to gain access. They can be picked up and returned to different designated locations. Anyone wishing to use a car club usually needs to pay it a membership fee, plus an hourly/daily rate for the time the vehicle is reserved, plus a charge for the distance travelled. For example, Enterprise Car Club’s most popular option is its standard plan, which sees members pay a monthly fee of £7 or an annual sum of £60. Vehicles can be hired from £4.95 per hour with a mileage charge of 21p per mile on cars or 27p per mile on vans. For longer journeys, some providers allow drivers to automatically switch from an hourly to a daily charge. WHEN COULD A COMPANY USE IT? A car club is regarded as ideal when rental access is required instantly and conveniently. It’s also suitable if access to a vehicle is required outside office hours or as part of an onward journey via other transport networks as they do not have to be returned to the location they were collected from. Most major providers now operate car clubs at thousands of locations across cities and major towns nationwide. Many organisations find car clubs help a company provide a more integrated mobility solution for their employees because they are easy to book and can be accessed with no fuss from many locations. For shorter journeys they can be a better option than daily rental. They also mean the employer doesn’t have to run a car pool, manage mileage reclaim systems or risk employees driving vehicles that are not fit for purpose.

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LONG-TERM RENTAL WHAT IS IT? Regarded by many to be a flexible alternative to leasing, this rental method ensures employees have access to a fully-maintained vehicle for longer periods – usually more than 28 days. Unlike leasing, businesses can reduce their financial exposure to longterm contracts and changing circumstances as these rental contracts can normally be cancelled quickly. Companies can also be more specific regarding the vehicles they require when compared to other rental methods. WHEN COULD A COMPANY USE IT? Long-term rental allows businesses to obtain specific vehicles for longer periods at a more cost-efficient rate than other types of rental and without the long-term commitment of leasing. It is ideal for companies that need to satisfy seasonal or contractbased demand without being tied up in a long-term lease. It also means that new recruits also have immediate access to a vehicle during their probationary period without the employer being committed to a long lease. Europcar UK Group has seen a definite move, in the past year or so, towards greater use of long-term rental solutions by its corporate customers. It believes this is largely driven by the flexibility that longterm rental offers businesses – both in relation to cost and in terms of accessing the right vehicle for the job – in comparison to outright vehicle purchase or three- to four-year lease deals. Long-term flexible rental can also reduce the tax liability compared to leasing vehicles. Further increases in the benefit-in-kind taxation liability announced in the budget relating to diesels will result in an escalating cost to the driver and the employer (Class 1A NIC) over the period of a lease – typically three or four years.

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CORPORATE CAR SHARING WHAT IS IT? A dedicated fleet of pooled cars and vans is installed by a rental company in an organisation’s car park for the shared use of employees. Like car clubs, employees can book the vehicles at any time using a number of different booking channels such as a phone, web, mobile site or apps. They normally access the vehicles either by entering a code on the windscreen key-pad or by using a swipe card, with keys frequently being kept inside the vehicle. WHEN COULD A COMPANY USE IT? Corporate car sharing is ideal for companies needing to make regular planned journeys as well as last-minute critical ones. It enables organisations to reduce the size of their own fleet and eliminates grey fleet – employees using their own car for business use – issues as well as money spent on mileage expenses and taxis. Some rental companies report that it also drives a significant improvement in utilisation, as a relatively high number of employees plan ahead to access fewer cars. The fleet also tends to have far lower emissions than a conventional grey fleet as it consists of newer vehicles. Corporate car sharing is increasingly common among companies wanting to reduce their carbon footprint, lower costs by improving utilisation and ease the admin burden.

DAILY RENTAL WHAT IS IT? Vehicles secured this way are rented on a 24-hour basis directly from a provider. Prices vary, but typically start at around £30 a day. WHEN COULD A COMPANY USE IT? Historically, many businesses have used daily rental for their temporary vehicles. Daily rental keeps employees mobile when they don’t have access to a company vehicle, or when their company vehicle is not available or fit for purpose. With most rental companies offering programmes to ensure daily rental is optimised for businesses of all sizes, it’s also a way to reduce employees’ expense claim paperwork and ensures companies meet their duty of care responsibilities. Companies requiring a short-term increase in their fleet or convenient transportation in a different area or abroad will find daily rental is an optimal option. Whether it’s heightened demand for delivery vans during peak times or cars to mobilise staff working on a temporary project, it allows businesses to tailor their fleet to their exact needs, without being tied to long-term contracts. Rental cars and vans are invariably modern and well-maintained and are usually more fuel-efficient and have lower CO2 emissions than personal cars or company-owned pool vehicles, making them ideal for longer trips.

FLEXIBLE COMMERCIAL VEHICLE RENTAL (FLEXI-RENT) WHAT IS IT? Long-term flexible rental enables businesses to access any type of commercial vehicle, including bespoke refrigerated and accessible transport, on flexible terms. Products like Enterprise Flex-E-Rent offer a full range of commercial vehicles – from light CVs through to utility vehicles of varying configurations, heavy goods vehicles and welfare vehicles meeting a range of accessibility requirements. WHEN COULD A COMPANY USE IT? Businesses may need vans and trucks for specific major projects and

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may be reluctant to commit to the cost of buying expensive commercial vehicles. Long-term flexible rental means businesses don’t have to commit to long-term contracts or a major capital expense on buying those vehicles. But this method still gives them opportunity to obtain the vehicles they require, with the right equipment and livery. They can get the vehicles they need, for as long as they need them, and return them without penalty. Livery and wrapping service is also usually available for customers to promote their businesses, even in rented vehicles.

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Why flexible rental is the perfect fleet solution for SMEs A new approach to business transport that’s cost-efficient and adaptable

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hat will the UK economy look like in three to four years’ time? It’s a question that even the best economists struggle with, particularly with the uncertainties of Brexit looming. But for thousands of UK SMEs, that is exactly what they are expected to predict every time they acquire vehicles for their fleet. When purchasing or leasing vehicles, typically with a replacement cycle of three to four years, SMEs have to predict how

many vehicles they will need – and the type of vehicles – for years in advance. For leasing, they even have to predict the exact mileage for their contracts, while if vehicles are handed back early, there is often a financial penalty to pay. It is how businesses have sourced their vehicles for decades, but in such a fastpaced and dynamic market as the UK SME sector, it is a model that is becoming as outdated as typewriters or fax machines. The good news is it’s easy to embrace a

Key benefits of flexible rental from Reflex

new, flexible approach to business transport that is cost-efficient and adaptable, ready to expand or change with the needs of your business. Flexible rental from Reflex is a new approach to sourcing fleet vehicles for small and growing businesses. Our name is inspired by our dedication to understanding your vehicle requirements and quickly responding with a right first-time approach. Vehicles can be provided for short-term use, with no long-term contracts to sign. If vehicles are no longer needed, then it just takes a quick phone call to take them off hire.

Safety first ■ Industry-leading safety standards ■ Commercial vehicles speed-restricted as standard ■ Vehicle tracking and dashboard cameras as standard ■ Instant incident response as standard ■ Proactive driver management through Driive with Reflex ■ Freight Transport Association Van Excellence operator accredited ■ Committed to keeping clients safe on the road


ent feature The flexible nature of the contract means there are no worries about longterm commitments should your business needs change, and you don’t have to predict your requirements or mileage patterns years in advance. Just keep vehicles as long as required, then hand them back if needed, or order more if your business expands. Reflex is a multi-award-winning national provider of flexible rental for cars and commercial vehicles, which means we can meet every fleet need from A-Z, covering everything from accountants, builders and couriers to zoos. We offer the widest choice of vehicles, with a fleet of more than 4,500, with a dedicated team on standby 24 hours a day to support your needs. You can choose from: ■ Panel vans ■ Crew vans ■ Personnel carriers ■ 4x4 and specialist vans ■ Cars Oliver Waring, managing director of Reflex, said: “For small businesses where cashflow is important, the flexibility Reflex can provide is important. Capital isn’t tied up in vehicles and there are no long-term contracts, so your cash flow is protected and you can adapt as your business needs change.”

A flexible fleet management partner Reflex works as an extension of your business, providing expertise, support and guidance as well as vehicles. With our extensive experience in fleet management, we can provide advice and information about best practice when it comes to running an efficient and safe fleet. Our team can handle time-consuming tasks, from arranging vehicle livery and additional equipment to vehicle servicing, repairs and other downtimerelated issues. Our close relationship with customers means we also have a community of like-minded SME managers who we can bring together to share ideas, experiences and solutions from across industry sectors. We also provide a unique range of services that focus on one of the most important and time-consuming tasks for any transport manager – duty of care. Every company, large or small, is required by law to maintain high safety standards for its fleet to protect drivers. As Reflex replaces its vehicles on a regular basis, employees always have

access to the latest vehicles and we fit our fleet with speed limiters, dashcams and our interactive tracking service Driive with Reflex to ensure drivers are kept safe and secure on the road. Should issues occur, you have access to footage surrounding the incident and if there is evidence of driving issues, our team can speak directly to drivers as an impartial third-party to give them advice and support. Lisa Spong, sales director of Reflex, said: “SMEs are not a number, they represent people who are committed to their businesses. We talk to customers and much of our growth comes through recommendations and referrals. “We know that when the smallest thing goes wrong in an SME, it can escalate quickly unless dealt with, so businesses need suppliers who are proactive and responsive. “We pride ourselves on our customer support. Everyone at Reflex knows our customers and we are a supplier that people can easily talk to and rely on, 24 hours a day, seven days a week, 365 days a year.”

Service to suit your needs ■ Flexible terms – a few days to a few years ■ Modern, reliable, efficient fleet ■ Bespoke specification by our in-house experts ■ National coverage ■ Industry-leading customer support ■ Award-winning service

Your partner for a cost-effective fleet ■ Build your fleet with no upfront costs ■ Protect cash flow while building your business ■ Competitive pricing ■ Fleet performance monitoring to maximise efficiency ■ Routine maintenance and servicing ■ No excess mileage charges ■ 24/7/365 breakdown and recovery service


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Transforming fleet safety with technology

Drivers can take to the road with more confidence

Telematics systems can be a fleet manager’s eyes on the road and provide huge amounts of data

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t can be a challenge for SME managers to decide where to focus their time with the number of competing pressures they face. When it comes to transport, the right technology can transform a fleet, improving safety and reducing costs, but there’s a catch. Solutions such as telematics can act as a manager’s eyes on the road, providing a wealth of data about vehicle movement,

Reflex deliver a vast amount of data

driving performance and key factors related to on-road incidents. However, for a busy SME, analysing the amount of data available and then acting on it can feel like an impossible task. But there is a way to turn data into insight efficiently, so managers can focus their time on taking action that makes a difference. Reflex is your partner on the road, delivering industry-leading technology as part of its flexible vehicle service, which includes data analysis and even intervention on your behalf to combat driving issues as they happen. We are so committed to safety that in addition to providing our unique risk management portfolio on our flexible rental vehicles, it can also be fitted to our customers’ own fleets. Reflex are the innovators behind a unique suite of products fitted to our vehicles to ensure fleet safety doesn’t stop when drivers are in a rental vehicle. Our technology provides comprehensive protection against common issues that can disrupt SMEs, from driver performance to

Reflex Online Management System Our state-of-the-art online management system gives you immediate access to every detail on your hired fleet. The Reflex Online Management System (ROMS) provides web-based control, with real-time data on vehicles and a comprehensive suite of reports. This ensures you can remain up to date on areas including ‘on-hire’ information, service, maintenance and repair details and when MoTs are due. This maximises the fast, efficient control of your fleet that is a key part of the Reflex service. n Direct online access to a suite of reports providing real-time insight into

your hired fleet. n Live ‘on-hire’ information with full vehicle description by order number and rental agreement. n Enables customers to obtain reports on every issue relating to vehicles. From service, maintenance and repair details to invoices management and updates on MoTs. n P11d information and average CO2 across the whole fleet. n Report scheduling so that you can request reports to be emailed to your business at an ideal time and frequency. n Cutting-edge technology delivering online driver and vehicle management solutions to our customers.

false third-party accident claims and theft. The state-of-the-art technology at the fingertips of Reflex customers includes: Flexitrack – our telematics offering with no contractual commitment or installation costs, that captures vehicle and journey data, including an incident alert feature. FlexicamPlus – Combined tracking and incident cameras offering a single service to ensure maximum protection on the road. Flexinap - Our innovative new product monitors the driver’s eyes to watch for signs of tiredness and then triggers a warning if it senses danger. Flexiprofiler – Online driver risk management service including driving assessments, licence checking and even driver training. Driive with Reflex – Live analysis of tracking and dashcam data, with expert third-party intervention to combat driving issues on the road, as they happen. This technology is fitted as standard to our fleet vehicles, in addition to speed limiters, offering the highest safety standards and the clearest insight of how vehicles are being used. Driive offers a complimentary daily vehicle check app and driver declaration” after the sentence ending in “as they happen” Lisa Spong, sales director of Reflex, said: “Reflex vehicles come with safety as standard and we led the industry in


ment feature

Driive with Reflex delivers new safety standards

“Reflex vehicles come with safety as standard and we led the industry in introducing this technology” Lisa Spong, Reflex introducing this technology, which provides financial and risk management benefits to our clients. “The Reflex initiative has been welcomed by customers from every industry sector, who have seen risk management and financial benefits from our investment in the latest technology”. The focus on technology has been recognised with a series of awards. Reflex became the first rental company to receive Van Excellence accreditation from the Freight Transport Association and last year it received the Brake Fleet Safety Product Award for driver safety. Reflex was also named Supplier of the Year and Rental Company of the Year in the Commercial Fleet Awards 2017.

Driive with Reflex is a new way for SME managers to maintain control of their fleet without investing too much time or resource. The service takes data from telematics and dashcams from the Reflex FlexiFamily of products and then filters it through data analysis tools to deliver insight about driving performance and key issues on a live basis. When alerts are triggered, for example by harsh braking, experts at Driive with Reflex are on hand to instantly respond, analysing information and taking action where needed. This can include contacting drivers as soon as possible – when it is safe to do so – to speak to them about the incident; often an impartial view is more likely to lead to change. Immediate action is critical because with traditional telematics systems, drivers may not be briefed on their performance until well after an incident, by which time it will be difficult to remember the circumstances. Drivers are also kept updated on their performance by an app, which includes a daily vehicle check, an incident alert feature and compliance documents. As part of the daily check, the driver must submit two declarations: that they hold a driving licence for the correct

class of vehicle and that they are fit to drive. SMEs can log into the system separately for a high-level view of fleet performance, with a dashboard typically including a risk score, exceptional reports and admin, which monitors insurance claims and costs. The potential savings from avoiding an incident are enormous for SMEs, where a single crash can trigger claims that could threaten a small company’s existence. In the longer-term, insurance savings can run into tens or even hundreds of thousands of pounds, depending on fleet size, which directly impact on SME profitability. Next on the agenda is a tyre pressure monitoring system and temperature monitoring system. Oliver Waring, managing director at Reflex, said: “Data collected for its own sake is meaningless; the true power of this information lies in how it is interpreted and acted upon. Our service turns data into strategic action to unlock its true potential and benefit both fleets and drivers. “Reflex is the UK’s only flexible fleet supplier to provide this comprehensive level of protection, delivering safer drivers and lower costs.”

Telematics information can be acted upon quickly

Visit: www.reflexvans.com Call: 0345 609 2345 Email: sales@reflexvans.com


BEST PRACTICE FUNDING

THE MANY WAYS COMPANIES CAN OPT TO PAY FOR VEHICLES Here, we look at the pros and cons of five funding choices

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usinesses looking to source vehicles face a multitude of funding options. The most popular choice is contract hire, which sees a company hire a car from a leasing company for a set period and predetermined maximum mileage at fixed monthly rentals. However, while it works for many businesses, others may benefit by acquiring a vehicle through a different funding method. There is no one-size-fits-all solution. Some companies employ different options for different vehicle types, typically known as ‘blended funding’. Here we look at the main funding methods available and their pros and cons.

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CONTRACT HIRE/OPERATING LEASE When a business takes on a vehicle through contract hire, it never owns it. The monthly rental or lease rate usually takes into account the cost of the vehicle including registration fees, road tax, its period of use and agreed mileage, funding costs and its estimated residual value (RV) at the end of the contract. Vehicle mileage will have a big impact on the lease rate because the number of miles has major implications for both service requirements and resale value. Underestimating mileage can reduce the monthly rental rate for the lessee, but it can result in excess charges at the end of the contract if contracted mileage is exceeded. The monthly rate for most contract hire agreements will also include a ‘service’ element of the rental, which can cover a range of additional services. Examples include maintenance, replacement vehicles, roadside assistance, accident management and fuel cards. Hirers are able to choose from a menu of options to meet their individual needs and level of in-house fleet support resources.

PROS ■ Fixed-cost motoring ■ Frees up capital and off-balance sheet (for most companies) ■ 100% of VAT reclaimable provided vehicle is only used for business ■ 50% of VAT is reclaimable if private use is allowed on finance. ■ Rentals considered an expense item ■ Additional line of finance that may not affect banking arrangements ■ The leasing company reclaims input VAT thus reducing the capital cost CONS ■ Need to accurately estimate the time and mileage for use of the vehicle ■ No option to buy the vehicle ■ At risk of end-of-contract charges for damage

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OUTRIGHT PURCHASE

FINANCE LEASE

Outright purchase gives a company the greatest level of control over what, where and how a vehicle is procured. It is also entirely up to the business how long they operate the vehicle for and over how many miles. It also provides a potential source of funds when the vehicle is sold. However, outright purchase means tying up capital in a depreciating asset and uses resources that could be invested in growing a business, funding stock or reducing debts. It also leaves a company at the mercy of the used vehicle market, as it takes the risk on whether the vehicle performs better or worse than expected when it is sold. Cash flow and budget forecasts are often complicated by the used car market’s unpredictability and the range of disposal options open to companies owning vehicles. These include auctions, dealers, trade-ins, local newspaper advertisements or direct sales to employees. Outright purchase of vehicles is usually regarded as an acquisition of a fixed asset for accounting purposes and would be recorded on the organisation’s balance sheet.

A finance lease allows the lessee to hire the vehicle for a fixed monthly fee, but it also transfers many of the risks and rewards of ownership of the vehicle to them. The vehicle will appear on the lessee’s balance sheet, with outstanding rentals represented as a liability. A finance lease generally conforms to one of two formats – the residual value lease or the fully amortised lease. In a residual value lease, the diminishing value of the vehicle is reflected in the monthly rental, with a final balloon payment covering the estimated residual value. If the sold price is above the predetermined final payment, then the leasing company will usually refund a percentage of the proceeds to the lessee. If the price is below the balloon payment, then the lessee will be liable to pay the shortfall to the leasing company. A fully-amortised lease accounts for the full value of the vehicle over the primary lease period within the monthly payments. Under these circumstances, the lessee may be offered a lease on the vehicle for a secondary period at a nominal rental.

CONS ■ Business carries full residual value risk ■ Any outstanding loan payments appear as a liability on balance sheet ■ Ties up capital ■ The vehicle will appear as an asset on the balance sheet (this may also be a pro) ■ VAT cannot be reclaimed unless the vehicle is used solely for business purposes

PROS ■ Purchase cost may be corporation tax deductible through capital allowances ■ The vehicle owner benefits from any higher resale values on the used car market rather than the leasing company ■ The vehicle will appear as an asset on the balance sheet (this may also be a negative) ■ No restriction of term of use or mileage

PROS ■ Fixed monthly rentals ■ 50% of VAT can be claimed on the finance element ■ Rentals usually corporation tax deductible ■ Potential to carry on using the vehicle at the end of the lease period ■ Additional line of finance that may not affect core banking arrangements ■ The vehicle will appear as an asset on the balance sheet (also a negative ) ■ The leasing company reclaims input VAT, reducing the capital cost

CONS ■ The lessee will not be the overall owner of the vehicle ■ The lessee will still be responsible for the SMR of the vehicles ■ The vehicle will appear as an asset on the balance sheet (also possibly a positive)

CONTRACT PURCHASE

HIRE PURCHASE

A contract purchase scheme sees a business agree to buy a vehicle by making a number of monthly payments – usually 36 or 48. At the end of the contract, the company is able to purchase the vehicle for a predetermined sum as long as the terms of the initial agreement have been met. The new owner can then either keep it, sell it themselves, commission their leasing company to sell it on their behalf, or sell the car back to the leasing company for a sum agreed at the beginning of the contract. The latter option means the business does not carry a risk of the vehicle being worth less than its estimated residual value.

Under hire purchase (also known as lease purchase), the customer hires the vehicle from a leasing company with an option to buy it at the end of the contract. A business entering this type of agreement is sometimes required to pay a three- or six-month deposit at the outset, while the agreement usually terminates with a lump sum typically equivalent to the car’s residual value. Monthly payments can be reduced or increased by varying the sizes of the deposit and final payment. This type of funding appeals to companies that want to retain ownership of their vehicles, do not want to use their capital or overdraft to pay for them and want to avoid mileage restrictions.

PROS ■ Purchase cost may be corporation tax deductible through capital allowances ■ Interest elements of monthly payments may be corporation tax deductible

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CONS ■ Outstanding instalments appear as a liability on balance sheet ■ Vehicle appears on balance sheet ■ Not VAT-efficient because VAT cannot be reclaimed unless the vehicle is used exclusively for business purposes

PROS ■ Purchase cost may be corporation tax deductible through capital allowances ■ Interest elements of monthly payments may be corporation tax deductible ■ Business can benefit from higher RVs

CONS ■ Business is at risk from lower RVs ■ Outstanding instalments appear as a liability on balance sheet ■ VAT cannot be reclaimed unless the vehicle is used exclusively for business purposes ■ Vehicle appears on balance sheet ■ Cost of in-house management

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AA calls on fleet industry to Too many smaller businesses are uninformed and need sound advice

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report jointly commissioned by the AA and BT’s Fleet Solutions reveals business and SME anxiety about the investment required into the UK’s electric vehicle infrastructure to support the alternatively fuelled fleets of the future. In five years, 63% of SMEs and businesses expect to be using alternative fuels to power their business vehicles, according to the second annual Operational Fleet Insight report produced collaboratively by the AA and BT’s Fleet Solutions. Nearly half of the report’s respondents felt government organisations should be lobbying for greater investment in electric vehicle infrastructure to support these alternatively fuelled fleets. The AA has already trained all of its patrols to be able to respond to and assist owners of electric vehicles as well as joining forces with Chargemaster to set up the multibrand Electric Vehicle Centre in Milton

Keynes. The EV centre is the first of its kind in the UK that provides information and advice on electric vehicles. The centre also provides free driving lessons with AA instructors to help motorists get the most out of driving and owning an electric vehicle. The AA recognises that in today’s economic climate fleet managers have a responsibility to both improving company performance and a duty of care towards employees. In 2016, the AA invested £150m into its systems. A large proportion of this has gone into frontline services to improve its offer to fleet and SME customers. Alternatively fuelled vehicles Alternative fuels will be a priority for fleets in 2018, as the government continues its focus on reducing emissions in UK cities. From the introduction of Clean Air Zones and increased taxes for diesel cars, there is a much greater focus on the environmental

‘Fleets are the backbone of British business and need more guidance to help them to make the most of the upcoming EV revolution’

impact of vehicles, and businesses need to take action to future-proof their fleets. The second annual Operational Fleet Insight report, produced by the AA and BT Fleet Solutions, found that almost 95% of fleets are currently made up of diesel or petrol-fuelled vehicles. However, SMEs and businesses will move towards alternative fuels to power their business vehicles. As the industry moves towards this greater electrification, the report found that SMEs are increasingly worried that manufacturers aren’t always treating them as a priority when it comes to advice and support due to their small fleet size. The lack of expert fleet knowledge that often exists within small businesses means that only 26% of SME fleet managers and decision-makers say their role involves focusing on long-term fleet strategy, such as a switchover to alternative fuels, compared with an already low average of 29% across all sectors. With many businesses still cautious about how to incorporate electric and other alternatively fuelled vehicles into their fleet, it is important that they work with strategic partners to help them make informed choices


ment feature

provide more SME guidance

about how to reduce their emissions. Electric vehicles are part of a wider mobility approach and their usage is increasing. The AA works closely with businesses, training them to make the most of the EV revolution. Benefits could include improved productivity, as staff can spend time making calls or doing other work instead of driving, as well as obvious fuel savings and greater tax incentives. Adding alternative methods of travel into the traditional fleet offering and helping to manage customers’ travel itineraries could also lay the foundation for future business growth in mobility as a service. As a mobility enabler, we will help businesses move into the next step of the game – including EV adoption and autonomous technology.

standards or pay a £10 emissions fee as part of the Toxicity Charge, or T-charge, in addition to a daily congestion charge. Between 7am to 6pm, Monday to Friday, it will now cost businesses £21.50 to drive each pre-Euro 4 vehicle in their fleets into London, which are typically diesel and petrol models registered before 2006. The change is expected to affect 10,000 pre-2006 vehicles. With other UK cities, such as Birmingham, Leeds, Nottingham, Derby and Southampton, considering following London’s lead in introducing emissions charges for polluting vehicles, the AA is calling for the automotive industry to increase its support for its SME customers. As emissions reduction becomes a focus for the UK’s large cities, businesses are under

New legislation As the push towards alternatively fuelled vehicles continues, more legislation will be implemented to enforce businesses to change their practices, such as the Toxicity Charge. Businesses and SMEs are being affected by the introduction of the Toxicity Charge in London. Starting in October 2017, vehicles driving through central London must now meet minimum exhaust emission

To find out more about the AA’s services for businesses, visit theaa.com/business To download and view the report, visit www.btfleetinsight.com

pressure to future-proof their fleets to ensure they comply with any future targets. Fleet managers feel required to investigate alternative fuel sources, but they may not have enough information to make strategic decisions or feel supported by the industry to take an informed step forward. Small businesses which will be affected are likely to be hit hard by the introduction of the Toxicity Charge, which almost doubles the cost of driving a vehicle through London during peak hours. Fleets are the backbone of British business and need more guidance to help them to make the most of the upcoming EV revolution. The automotive industry must provide the support businesses require to help them to anticipate upcoming legislation and reduce costs.


BEST PRACTICE SOFTWARE

WHAT SMEs NEED TO KNOW ABOUT VEHICLE MANAGEMENT SOFTWARE Using software to manage vehicles and drivers has benefits for SMEs, but a small business needs to choose the right package and implement it correctly

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usinesses that operate vehicles are required to manage a lot of data and documents on their vehicles and anyone who drives them. Using software to centralise and automate the recording of these disparate elements ensures that all management information is in one place and immediately accessible. Driving licence checks, MOTs, training and more can be recorded, with automated reminders sent via text and email to ensure the information remains current. Details such as licence validation, vehicle servicing and MOT documentation can be fed into the Driver and Vehicle Standards Agency (DVSA) database with minimal human intervention. Dependent on the system, the software can also provide a comprehensive and holistic record of activity, something that will become even more important with the introduction of the General Data Protection Regulation (GDPR) in May (see page 4). Software can provide a clear, concise and automated audit of all vehicle-related activity and shows companies are adopting the GDPR principles of transparency and accountability, backed by proof that they have obtained individuals’ consent to use all the data they have collected.

to collect, how and to what level should it be analysed and what processes and protocols should the system run? Document the vehicle’s life from start to finish and decide how much of that should be automated. Then assess what you will need in three, five, seven years’ time, so you are catering for changes in your business and technological progress. Having done that, you will have a good idea of the scale of the task, allowing you to transmit that to potential suppliers in a request for proposal (RFP). While outlining the component parts, it is worth examining what you have done to date to identify any outdated practices, so you can cater for that in the RFP. Beware of looking for technology that mirrors what you have. New software should provide cost and efficiency benefits – not just value, but added value. SOFTWARE CAN BE TAILORED TO YOUR BUSINESS Buying a vehicle management system that handles your business’s current requirements is not enough. The package should be

configurable and modular to ensure it moves with the times and your needs. Not only might your business grow or reduce in size and change in vehicle profile, but legislation and industry standards will also change and your software must be able to respond without having to be replaced and without major investment or disruption. The number of vehicles you operate is not the overriding factor, because duty of care, risk management, safety and legislative demands are common to all businesses, although the amount of data to be collected, processed and analysed will increase if you add vehicles or drivers. Management tools should integrate with your business’s HR, finance, payroll and external systems such as fuel and maintenance cards, electronic purchase transactions, telematics, DVLA and HMRC. Start with a supplier’s basic package and see whether it covers most of your needs, then look at what else would be useful and what it will take to provide it. Bespoke designs are not usually desirable for SMEs as they lack the flexibility of a modular system.

WHAT TO LOOK FOR WHEN CHOOSING A SUPPLIER As with any long-term relationship, partnering with a software provider requires considerable research. Study the market so you know what is happening in software development and talk to potential providers about how their system integrates with elements such as HR, finance, payroll and so on. This requires an application programming interface (API) and most cloud-based platforms are equipped with one that is fully enabled. Without it, you will be constrained to working with one company. Is the company financially stable? Does it invest in its products? Does it meet current or forthcoming regulatory demands, such as the GDPR? Does it have ISO accreditation, is it DVSA-compliant? Seek out an experienced account management team, take up references, talk to your peers and look for a proactive user group – there is nothing more valuable than hearing from those who have done the empirical research.

HOW TO SELECT THE RIGHT PACKAGE First and foremost, buyers should work out exactly what they need – what data do you want

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Where you consult clients of your intended supplier, see the technology in action and talk to those who are using it – both managers and drivers, so you get management and coalface reviews. SOFTWARE CAN IMPROVE SAFETY AND DUTY OF CARE Vehicle management software can play an important role in improving employee and vehicle safety. A system can point out that when a service or MOT is due, and it can be used to record daily vehicle checks to ensure the vehicles are roadworthy. Best of all, the data can all be visible to managers on one screen. Many systems allow managers to set and prioritise alerts, so they are informed of any potential lapses in duty of care. Prioritising is essential. It is easy to become bogged down with data to the extent that the temptation is to do nothing with it. For businesses that allow drivers to use their own vehicles for work purposes, a system that increases efficiency and makes it easier for employees to submit details such as vehicle insurance, VED, MOT and servicing records helps employers to protect themselves legally and to safeguard their reputation.

and updating jobs; clocking on and off of employees; logging and updating of vehicle defects; maintenance history; service schedules; inspection sheets; pool car availability and use; accident/incident forms, etc. Vehicle management software can replace paper forms with online versions and collect, organise and display live information. This can save significant amounts of time and, therefore, money. It also removes the likelihood that fragmented physical data leads to loss or duplication of information, giving a collated and accurate profile of your business’s vehicles and drivers that is instantly accessible to all parties. Apps allow mobile devices to enter the picture, ensuring that drivers have little excuse for not providing

the information required and allowing managers immediate and automatic communication with them. If you plan to make regular updating of information part of your company culture, it is advisable for it to be included in contracts of employment, codes of conduct and job descriptions. SOFTWARE CAN BE REGULARLY UPDATED If your provider undertakes ongoing product development and enhance-

ments, upgrading should be relatively painless. Changes in legislation, new business practices or product developments are all good reasons for updating your software. Keep an eye on the future – manufacturers will soon be putting telematics in vehicles as standard and mobile devices will become ever smarter. Problems with your existing arrangements can also be a prompt to re-assess, particularly if a system does not integrate with other software smoothly or is creating more problems than it solves, such as requiring greater human input. However, keep in mind that moving information from one supplier to another may involve data reformatting – which can prove to be a gargantuan task.

SOFTWARE CAN REDUCE THE BURDEN OF ADMIN SMEs can generate significant amounts of administration data on the vehicles they operate – allocating

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2018 35


KEY DIARY DATES

HOW TO KEEP UP TO DATE A glossary of the seminars, briefings and awards events for the 12 months ahead

EVENTS 2018/2019 April FTA Van Excellence Operational Briefings The briefings will explore risk and driver management and discuss best practice and compliance issues. Date/location: April 10, Celtic Park, Celtic Football Club, Glasgow. Date/location: April 12, Kassam Stadium, Oxford United Football Club, Oxford. Date/location: April 19, Pride Park, Derby County Football Club, Derby. Cost: £50 (exc VAT). For more information: www.fta.co.uk Commercial Vehicle Show The CV Show features a wide range of exhibitors from truck, van, trailer, tanker and reefer manufacturers to forklifts, insurers, tyre, telematics and training providers, fuel and lubricants suppliers. Date/location: April 24-26, NEC, Birmingham. Cost: free, register online. For more information: www.cvshow.com

May Brake webinar: vehicle procurement for safety – passive safety systems This webinar will explain the latest technology and provide guidance on how to choose vehicles that maximise the safety of vehicle occupants and vulnerable road users such as pedestrians and cyclists. Date: May 2. Cost: free, register online. For more information: www.brakepro.org Brake Pledge workshop This training course covers six key areas of occupational road risk, what employers should be doing to manage their risk, and how to successfully educate and engage drivers with road safety messages. Date/location: May 3, Manchester

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(also: June 14, Swindon; September 6, Birmingham; November 1, Manchester; December 6, Swindon). Cost: free for Brake members, £90 (exc VAT) for non-members. For more information: www.brakepro.org ACFO Spring Seminar: fleet management for today and tomorrow This seminar will look at how the role of the fleet manager is changing, covering future trends in mobility, technology and data. Date/location: May 18, Vox Conference Centre, Birmingham. Cost: £230 (exc VAT) for annual membership of ACFO. For more information: www.acfo.org Brake Fleet Safety Conference The conference will share best practice in managing work-related road risk. Date/location: May 25, Birmingham. Cost: £60 (exc VAT). For more information: www.brakepro.org

Brake webinar: connected and autonomous vehicles – moving towards autonomy Academics and practitioners will discuss the latest technology being developed and tested across the world and will explore how businesses can prepare for what lies ahead. Date: June 13. Cost: free, register online. For more information: www.brakepro.org

July Brake webinar: engaging drivers on key safety messages Academics and practitioners will discuss the different methods you can use to inform and engage your drivers about road safety issues. Date: July 11. Cost: free, register online. For more information: www.brakepro.org

October June

Company Car in Action Run by Driving Business’s sister title, Fleet News, Company Car in Action (CCIA) is the UK’s most comprehensive driving event for fleet decision-makers and influencers, with more than 300 vehicles to test (unaccompanied) on four different routes. Plus the EV/hybrid review zone, debates and networking opportunities. Date/location: June 12-13, Millbrook Proving Ground, Beds. Cost: free, register online. For more information: www.companycarinaction.co.uk

Fleet Live Fleet Live 2018, which is held by Driving Business’s sister title Fleet News, will cover all aspects of fleet management from the future direction of company cars and emerging vehicle technology through to practical, hands-on advice relevant to today’s needs. It consists of interactive exhibitions, best practice workshops, breakfast seminars, daily debates and networking opportunities. Date/location: October 9-10, NEC, Birmingham. Cost: free, register online. For more information: www.fleet-live.co.uk

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Brake Fleet Safety Awards The awards recognise the achievements of those working to help reduce the number of road crashes involving at-work drivers. Date/location: October 11, Hilton Birmingham Metropole. Cost: £150. For more information: www.fleetsafetyawards.com

November

TAX AND CHARGES April 8, 2019: ULEZ London’s ultra low emission zone (ULEZ) will supersede the T-charge and create stricter emissions standards for diesel vehicles, 24 hours a day, seven days a week. Those that do not comply will face a charge. January 1, 2020: CAZ Clean air zones (CAZs) are set to go live in five major cities: Birmingham, Derby, Leeds, Nottingham and Southampton (see page 13). April 2020: BIK The benefit-in-kind tax treatment of ultra-low emission vehicles changes with six bands relating to their electric range (see page 12).

Commercial Fleet Awards The Commercial Fleet Awards, held by Driving Business’s sister publication Commercial Fleet, are designed to recognise the critical role the commercial vehicle industry plays in keeping British business moving. Date/location: November 29, Hilton Birmingham Metropole. Cost: £220 (exc VAT). For more information: www.awards.commercialfleet.org

LEGISLATION May 25, 2018: GDPR The General Data Protection Regulation (GDPR) replaces the current Data Protection Act, and covers how personal data is processed and held by organisations. Businesses found in breach of the regulation could face a fine of up to £17.9 million or 4% of annual turnover, whichever is higher (see pages 4-5). September 2018: WLTP All new cars must be certified according to the Worldwide harmonised Light vehicle Test Procedure (WLTP) and no longer on the New European Driving Cycle (NEDC) (see pages 8-9).

March 2019

Fleet News Awards The Fleet News Awards honour the very best in the company car and van market, from fleet managers to manufacturers and suppliers, and are judged by some of the most respected fleets, leasing providers and pricing guides in the country. Date: March 20, Grosvenor House Hotel, London. Cost: £305 (exc VAT). For more information: www.awards.fleetnews.co.uk

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January 1, 2019: lease accounting rules All leased assets, including company vehicles, must be included on company balance sheets under new lease accounting rules. The standard only applies to companies which report to the International Financial Reporting Standards, e.g. those listed on the Stock Exchange, and the public sector. However, there is widespread expectation that the UK Generally Accepted Accounting Principles (GAAP), under which most companies report, will eventually converge with the new standard (see page 6). September 2019: RDE step 1 All new cars must be put through the Real Driving Emissions (RDE) test, which complements WLTP and measures pollutants, such as NOx (see pages 8-9). January 2020: RDE step 2 RDE step 2 (also known as Euro 6d), which applies stricter criteria, will apply in January 2020 for new vehicle types and then from January 2021 for all types (see pages 8-9).

2018 37


VEHICLE HIRE

Tips provided by

TOP TIPS

10

...TO E S O O CH IGHT THE RPLIER SUP

1 SUPPLEMENT THE CORE FLEET

2 MIND THE GAP

Think about rental to supplement a core fleet, and pick a partner that offers the flexibility to make that work. The best partner should be able to respond to a spike in demand or a temporary need for more specialist vehicles without delay.

Look for a provider that has the flexibility to help you tackle both short and longer term needs – especially one that can act as a ‘gap filler’ for the vehicles that are off road for maintenance or servicing.

3 ACCESS ALL AREAS

4 BANISH THE GREYS

Where do you operate? Does your vehicle rental partner cover that area too? And can they service your needs 24/7? Make sure their network matches your own business profile.

Grey fleet usage adds cost to a business – and uncertainty about driver safety. Use vehicle rental to reduce dependency on employees’ driving their own cars, and reap the cost and wellbeing benefits.

5 GET THE KNOWLEDGE

6 RIGHT VEHICLE, RIGHT JOB, RIGHT PLACE

Knowing how drivers are driving, what vehicles they’re using and mileage incurred, gives businesses valuable insight to manage costs as well as staff safety. Pick a rental partner who can provide MI as an integral part of the service.

For many businesses, no two days are the same. Vehicle needs may not be the same either. Choose a supplier that offers a diverse mix of vehicles, accessible across the footprint in which your business operates.

7 SHARING IS CARING

8 ANY EXTRAS?

Think about how rental can enable car sharing among employees for business journeys. Choose a provider who can manage a ‘car pool’ that can be easily accessed by employees.

A good provider should be able to respond to non-standard requirements such as supplying Chapter 8 liveried commercial vehicles as readily as the standard models on fleet. Check your provider can customise vehicles to meet your needs, from internal racking to towbars and beacons.

9 GO GREEN Meeting a company’s environmental policy when choosing transport options can be a challenge. A rental partner that has strong manufacturer relationships should help, not only by accessing younger vehicles but by offering access to the latest motoring technology for reduced emissions and fuel efficiency.

10 AN INTEGRATED PARTNER An online system to book, manage and monitor reservations will ensure that rental becomes an integrated component in the fleet manager’s toolkit – ensuring compliance and visibility is in line with the business policies.


Advertisement feature

Vehicle hire is the answer for commitment-phobes For SMEs, this can be the perfect solution for fleet needs

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n today’s uncertain climate, businesses don’t want to make long-term financial commitments. And that includes the vehicles that keep business on the road. Potentially requiring upfront capital investment, as well as putting pressure on cash flow, managing a small business fleet not only puts pressure on an organisation’s bottom line, but adds to the management burden too. Acquiring vehicles takes time and research and requires good negotiating skills to secure the best deal. And that’s before factoring in the cost of maintenance and depreciation. At a time when business owners may be nervous about taking financial risks, vehicle hire offers a practical solution. Vehicle hire keeps businesses mobile, enabling employees to stay on the road safely and efficiently. The risk of vehicle down-time is eliminated – just access the right vehicle when needed. From short-term rental to car share For some businesses, access to conventional short-term rental is the ideal solution – a car can be booked for a specific employee and journey, safe in the knowledge that the member of staff will be driving a car that is roadworthy, fuel efficient and meets requirements over duty of care. Car hire also makes car sharing between employees easy. A ‘car pool’ can be managed by Europcar, eliminating the need for in-house fleet management. Car sharing is good for the environment too! Fit for purpose No business wants to buy or lease specialist vehicles they they may only need for a short period of time to serve a specific customer need. Investing in vehicles that don’t evolve with a firm’s changing needs is another risk businesses don’t want to take.

“At a time when business owners may be nervous about taking financial risks, vehicle hire offers a practical solution”

and collection and a choice of annual mileages on each vehicle, with monthly billing and customised monthly reporting. Flexible long-term rentals give SMEs certainty of cost and vehicle reliability without having to commit to a 12-month or longer lease.

Again, vehicle hire is the answer. The range of choice in the Europcar fleet means we will always have the right vehicle for the job – from compact cars to long-wheel-base vans, liveried for Chapter 8 requirements.

A flexible partner Europcar understands business’s needs change, so our services for SMEs are designed to support those changing needs. The Europcar fleet and network means we have the right vehicles for the job, when they’re needed. If a company’s vehicle requirements change due to seasonal demand or the need to service short-term projects, Europcar provides a flexible solution, enabling the types and number of vehicles on hire to be changed without financial penalty.

In it for the long-term A genuine alternative to leasing is Europcar ‘Advantage’, which provides businesses with a long-term solution. Offering vehicles for three or six months, Europcar ‘Advantage’ includes delivery

To find out more about Europcar’s services for small and medium sized enterprises, telephone 0371 384 0140 or email businesssolutions@europcar.com


TELEMATICS

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...TO E S O O CH IGHT THE RPLIER SUP

1 KEEP YOUR GOALS REALISTIC

2 YOUR TIME IS PRECIOUS

Telematics can provide businesses with hundreds of reports and insights. But for smaller fleets, many of the reports are not necessary and will only swamp you with data. Set objectives and select a few key performance indicators to achieve them. Popular goals include lower fuel consumption, eradicating unsafe driving or better management of business and private mileage.

A good telematics solution will be available to buy online without the hassle of lengthy sales consultations. A web-based purchasing process is ideal for SMEs and smaller fleets as orders can be completed in minutes. Devices are usually shipped on next-day delivery and can be installed instantly without any professional know-how.

3 TRY BEFORE YOU BUY

4 DIY INSTALLATION

Before you commit to a purchase, look for a provider that allows you to test their telematics system first-hand. Online demos are great to explore features and benefits on offer but you won’t understand the full advantages until you have fitted a device to one of your vehicles. A good provider will offer you a month-long trial and give you access to web portals and mobile apps.

Self-install systems enable you to fit the device yourself. Most vehicles are compatible with modern telematics devices but ensure you use an online compatibility checker such as the one on Trakm8 Prime’s website – this will help you to locate the OBD port for your specific vehicle. Self-install solutions also allow you quickly transfer devices between vehicles.

5 FEATURE RICH

6 INSIGHTS ON THE MOVE

Telematics systems have come a long way from just monitoring vehicle location. For a small price, features such as driver scoring, determining business and private mileage, vehicle health alerts and geo-fencing are now standard with all good solutions. These will help you to effectively manage your vehicles but also help to boost productivity, improve safety and reduce costs.

Having the ability to view your vehicle’s data while out of the office can be critical to making business decisions. Keep an eye out for a solution which has a web portal rather than one that requires software to be installed on a specific machine. Most good providers also offer apps for individual drivers to monitor their personal data.

7 IT’S GOOD TO TALK

8 MAKE IT FUN

Some companies try to keep telematics systems secret from employees which can be counterproductive. Always explain the benefits of vehicle tracking to your colleagues. It is not just about enhancing the bottom line for the business – it is also a way of improving driver safety, simplifying their mileage returns and preventing frustrating breakdowns.

Incentivise employees with prizes or bonuses for the best performing or most improved drivers. This type of gamification introduces healthy competition among drivers and makes efficient driving more fun for your workforce. Weekly or monthly competitions also speed up the effect telematics can have on improving driver behaviour while removing negative opinions.

9 KEEP IN TOUCH For businesses new to telematics or those that have recently switched supplier, some of the features within a web portal can be confusing. While you should look for a provider that has a simple-to-use interface, not everything will always be clear so don’t be afraid to contact the company with any issues. Any worthwhile supplier will provide good after-sales support.

10 PROTECT PRIVACY You should be confident your telematics provider and solution are fully-compliant with privacy and data protection laws including the new GDPR legislation. Look for a company that is ISO27001 accredited, that vows never to never pass on your personal data to third parties, and that ensures all personal data is collected in accordance with the Data Protection Act 1998.


...TO E S O O CH IGHT THE RPLIER SUP

WINDSCREENS

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TOP TIPS

1

10

WINDSCREEN REPLACEMENT = ADAS RECALIBRATION

2

CAN YOUR PROVIDER RECALIBRATE YOUR ADAS?

If your vehicles have an Advanced Driver Assistance Systems (ADAS) fitted, it will need to be recalibrated after a windscreen replacement. Auto Windscreens is the only glass repairer to work with manufacturers so fleets are protected and the ADAS cameras and sensors will perform in the way they are designed to. Any recalibration is done by manufacturer-trained technicians.

There are many forms of ADAS available with manufacturers, including various amounts of the systems, which can relay various data sources. There is not one piece of kit to recalibrate all systems and some manufacturers say their systems can only be recalibrated by their own equipment. Auto Windscreens can rely on each manufacturer to recalibrate their own ADAS.

3 RECALIBRATE YOUR ADAS AFTER ANY COLLISION

4 MAKE SURE YOUR VIEW IS CLEAR

The Advanced Driver Assistance Systems are so technical and sensitive that even a low-speed bump can cause a misalignment to a sensor. If a sensor is out by a couple of millimetres it could be detrimental to the accuracy of the cruise control, lane assist and collision braking systems. Even if the camera or sensor isn’t damaged, recalibration or realigning could still be needed.

The Highway Code states that drivers should have a full view of the road and traffic ahead. If a chip turned into a crack in your windscreen, this would affect your visibility and would be against the law. This could result in a £1,000 fine. Therefore, even if you do just have a small chip, it’s definitely worth getting it fixed sooner rather than later.

5 WINDSCREEN DAMAGE CAN BE AN MOT FAIL

6 GET BACK ON THE ROAD QUICKER WITH A REPAIR

Damage on your windscreen could result in an MOT fail and your vehicle will not be deemed roadworthy. Any damage of 40mm or larger will mean your vehicle will fail its MOT. But a chip or crack of 10mm will also mean an MOT fail if it is in Zone A of the windscreen – this is the section of windscreen that is 290mm wide and centred on the steering wheel.

Windscreen repairs are often much quicker than replacements, so you’ll soon be back on the road. The appointment only takes 45 minutes and can be at a location of your choice. It’s worth booking an appointment as soon as you see the damage to save you having your whole windscreen replaced if further damage occurs and keeping your car off the road for longer than necessary.

7 USE QUALITY SCREEN WASH

8 ALWAYS SWITCH OFF YOUR WIPERS

Ensure you top up with good quality anti-freeze screen wash. It may cost you more than just using water but it’s important that your car windscreen stays clean and you have clear visibility on the roads. It’s all well and good purchasing the screen wash, but remember, you need to keep your screen wash topped up throughout the autumn and winter months.

When the car is being switched off always allow the wipers to ‘self park’. Otherwise the wipers will then finish their sweep once the ignition is turned back on. If the screen is dry and grit is resting on the blades it’s likely the rubber will drag across the glass and scratch the surface; or if iced up, it may cause major damage to the wiper mechanism.

9 REGULAR CARE IS ESSENTIAL There are things you can do to prolong a screen’s life. Ensure only good quality wipers are used – and only when the screen is wet. Clean the glass separately from the rest of the vehicle, always with fresh water and a dedicated sponge and leather to avoid accidental scratching. Polishes, including interior plastic detailers can cause discolouration of the glass if left unattended.

10 SAVE MONEY WITH A REPAIR Get damage fixed as soon as possible as a chip can quickly turn into a crack, which means a replacement is needed. A repair is cheaper and we will always recommend a repair if possible. The repair mends the screen like body filler repairs a rust hole, but with a transparent gel. But a screen can only be repaired so many times and chips can be no closer than 10cm to each other.


New ideas, new features and a new name for the biggest and most invaluable exhibition and conference in fleet leet Live is open for business. The hall has been booked at the NEC, exhibitors are signing up and, from next week, you can start registering your interesting in attending the most important and useful two days of the year for anyone involved in making decisions about their company fleet. The show, previously known as Fleet Management Live, was renamed following consultation with its visitor advisory board who felt Fleet Live better represented both the broader job functions involved in fleet decisions and the wider responsibilities of fleet departments in travel and mobility. Visitor advisory board member Lorna McAtear, fleet supply manager at Royal Mail, explained: “FML has grown so successfully, it now encompasses much more than just basic management. It’s keeping true to its roots but looks to the future much more – it has a pulse of its own, hence the change in name.” Fleet Live is more than just a new name; this year it will introduce a number of exciting new features. For the first time, the best practice sessions are being curated by members of the visitor advisory board who are taking the lead on content and speakers. The seminars have been split into strategy sessions, looking at the macro topics that will influence how fleets plan for the future, and operational sessions, providing advice and tips that fleets can introduce immediately into their businesses to make a difference to their efficiency and effectiveness. We are also planning a CV zone featuring vans and trucks from key manufacturers to allow van and truck fleet operators to compare and contrast the various models. To date, more than 50 exhibitors have confirmed their place at Fleet Live 2018, including Jaguar Land Rover and Toyota & Lexus, who will be bringing their latest cars. Meanwhile, members of the visitor advisory board have agreed to reprise their role in the advice centre, which was in great demand after its introduction last year. This service provides new and inexperienced fleet

F

managers with guidance and information to help them address the challenges they faced in their operations. Board member Rory Morgan, head of logistics support – Western Europe, Iron Mountain, said the advice centre was a perfect opportunity for those that had fleet thrust upon them to gain from the knowledge of their peers. “Seminars and presentations are great for getting an overview of ideas and successes, of course, but in my experience people want that closer, more personal, interaction to ask questions as well,” he said. Fleet Live is the ideal opportunity to keep up-to-date with legislation, policy and new technology. Last year’s post-show survey revealed that the majority – 72% – of visitors came to the event to grow their knowledge of best practice, fleet policy and regulations, while 66% said they were there to meet fleet suppliers. Stephen Briers, Fleet News editor-in-chief, said: “Fleet Management Live was a huge success and surpassed our target expectations. Changing the name to Fleet Live will give us even greater focus and momentum to ensure we improve and grow this year’s show. “If a business wants to cut costs, improve its green credentials, reduce risk, better manage its drivers, buy or lease vehicles more effectively, Fleet Live is the only place they can find all the answers.” Visitor registration to Fleet Live opens on Match 12. Visit the website for more information.

WHAT THE VISITOR ADVISORY BOARD THINKS ABOUT FLEET LIVE: “IT’S ABOUT BEST PRACTICE SHARING AND NETWORKING” ALISON MORIARTY, SKANSKA

“WHETHER YOU ARE IN HR OR FINANCE, IF YOU HAVE FLEET RESPONSIBILITY FLEET LIVE WILL HAVE THE CONTENT THAT WILL HELP YOU TO UNDERSTAND THE WORLD OF FLEET BETTER” PETER WESTON, ARCUS

Agility AID Fuels Group Alphabet Arval Ashwoods Lightfoot Limited AssetWorks LLC AutoGlass EXHIBITORS Abax DriveTech, part of The AA Enigma Telematics Fleet Operations Free2Move Lease Fuelgenie GEFCO Halfords BOOKED Licence Check Ltd Matrix Telematics Mercedes-Benz Financial Services UK Ltd Mileage Count Nexus SO FAR Telogis TCH Leasing Tevo Ltd Toyota & Lexus TTC Group Venson Automotive Solutions Volkswagen

Supported by


OCTOBER 9-10, 2018 NEC BIRMINGHAM FOR MORE DETAILS ABOUT FLEET LIVE 2018, GO TO WWW.FLEET-LIVE.CO.UK

FLEET LIVE VISITOR ADVISORY BOARD The Fleet Live visitor advisory board was created to help the show to meet the needs of fleet decision-makers, whether fleet managers, travel/mobility managers, procurement, finance or HR. The panel meets every two months to discuss new ideas and agree on the core content driving the best practice and strategy sessions. Board members manage fleets ranging from fewer than 100 vehicles to more than 10,000.

“IF YOU ARE NEW TO FLEET, IT’S A NO-BRAINER – YOU HAVE TO GET ALONG. FOR THOSE MORE EXPERIENCED, THERE’S ALWAYS A NUGGET THAT YOU CAN TAKE AWAY” RORY MORGAN, IRON MOUNTAIN

■ Lorna McAtear, fleet supply manager, Royal Mail ■ Stewart Lightbody, head of fleet services, Anglian Water ■ Alison Moriarty, fleet risk & compliance manager, Skanska ■ Rory Morgan, head of logistics support – Western Europe, Iron Mountain ■ Dale Eynon, head, Defra Fleet Services ■ Peter Weston, fleet manager, Arcus

■ David Oliver, procurement manager, Red Bull Company ■ Debbie Floyde, fleet & risk manager, Bauer Media ■ Paul Taylor, fleet manager, Morgan Sindall ■ John Pryor, group fleet & travel manager Arcadia and chairman ACFO ■ Caroline Sandall, vice-chair, ACFO ■ Jerry Ward, manager, legal operations, John Lewis Partnership

Axle Weight Technology Ltd Bott Ltd BP Oil UK Ltd Chevin Fleet Solutions Chevronshop DAC Beachcroft LLP Intellidrive Interactive Fleet Management Jaama Ltd Jaguar Land Rover Joyce Design Lex AutoLease Licence Bureau Vehicle Rental Pertemps Reflex RingGo Corporate Scorpion Automotive Selsia Vehicle Accident Centre Financial Services VMS Fleet Management Ltd


2018 LAUNCH GUIDE LARGE FAMILY CARS

HYUNDAI i40 Available: Late 2018 n Second facelift for i40 model likely to bring styling in line with new i30 and renew its appeal n Updated engine line-up will offer improved fuel efficiency and lower emissions n Interior quality expected to be enhanced to keep up with rival large family cars n As it retains the current platform, a plug-in hybrid is unlikely until the next generation in 2020

MAZDA 6 Available: Spring n Mazda 6 facelift will focus on an interior redesign alongside subtle exterior changes n New interior includes a redesigned centre console and dashboard, with less clutter and more functions housed within the centre screen n Upgraded materials make the Mazda 6 feel more upmarket n Petrol and diesel engines carried over from the current car, but likely to offer better real-world fuel efficiency n Was revealed at Geneva motor show last month

Current model pictured

Current model pictured

BMW 3 SERIES

Available: Late 2018 BMW has much ground to make up with the new 3 Series, as the current model has fallen behind some rivals in ability and appeal. We can expect sharper styling and the launch of three-cylinder versions in entry-level petrol and diesel models to help give it a lead in the fuel-efficiency and emissions battle, as well as a new plug-in hybrid to follow on from the current popular 330e. Reduced weight should also improve real-world fuel efficiency, while a longer wheelbase will ensure better interior space, and wider stance is likely to ensure the 3 Series reclaims class honours for driver appeal.

FORD MONDEO FACELIFT Available: Summer Three years on from the Mondeo launch, we can expect revisions to bring a more upmarket feel inside and a family look inspired by the 2018 Focus. Current model pictured

46 2018

INFINITI Q50 FACELIFT

Available: Spring A subtle makeover for Infiniti’s 3 Series rival will bring it in line with the new QX50 due in 2018, with a redesigned front end. We can also expect more equipment for the money.

Current model pictured

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MERCEDES-BENZ C-CLASS FACELIFT

Available: Summer Facelifted C-Class will debut new technology and superior 2.0-litre diesel engine from the E-Class, improving fuel economy and reducing emissions, while exterior changes will be subtle.

VOLKSWAGEN PASSAT FACELIFT Available: Late 2018 Three years after launch, it’s likely we’ll see minor revisions to the Volkswagen Passat to ensure it keeps pace with developments in technology, as well as some styling tweaks.

Current model pictured

VOLVO S60/V60

Available: Late 2018 The first model of the new ‘60’ generation – the XC60 – was launched in 2017 so these will be the third-generation 60 models. They will be viewed as legitimate rivals for the BMW 3 Series, Audi A4, MercedesBenz C-Class and Jaguar XE for the first time. The renewed ‘90’ range, as well as last year’s XC60 and XC40, have

shown Volvo can position itself as a premium car brand, with residual value forecasts comparable with German rivals. For the S60 and V60, we can expect an uncluttered cabin with a portrait-format central touchscreen. They should also be roomier than the outgoing models. Engines will reflect the XC60 line-up, with turbocharged petrol and diesel, plus plug-in hybrid power.

Current model pictured

Current model pictured

MG 6 Available: Summer n New MG 6 expected to demonstrate a huge leap in quality over its predecessor n Car has grown in size with a wheelbase equivalent to uppermedium cars n Chinese market model offers a plug-in hybrid using a 125PS 1.0-litre turbo petrol engine and 85PS electric motor, which could be destined for the UK n Likely to be unveiled in the UK at the London motor show in June

Current model pictured

PEUGEOT 508 Available: Summer n New Peugeot flagship saloon will move upmarket and be more style-focused than predecessor n Peugeot targets ‘high-end mainstream’, with DS remaining PSA’s ‘premium’ brand n Design will be inspired by the Instinct concept car (pictured) n New platform will accommodate plug-in hybrid technology, but turbocharged petrol and diesel versions will be offered n i-Cockpit instrument screen from 3008 and 5008 will be standard

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2018 47


2018 LAUNCH GUIDE MEDIUM SUVS

AUDI Q3

Available: Summer n Q3 is the last small Audi to migrate to the Volkswagen Group MQB platform, but will mean a lighter and more spacious replacement n Appearance likely to evolve in line with latest Q7 and Q5 models n E-tron plug-in hybrid version expected during the new model’s lifecycle n Expected choice of 1.5-litre and 2.0-litre turbocharged petrol engines and 2.0-litre TDI diesel

BMW X2

Available: Now n Style-focused alternative to X1 shares engines and technology with sister model n Front-wheel drive petrol and choice of four-wheel drive diesel versions offered initially, with xDrive20d the first to arrive in the UK n Front-wheel drive sDrive18d diesel variants to follow later in 2018 n CO2 emissions start from 121g/km for the xDrive 20d (dependent on wheel size), with later FWD diesel expected to be lower

HONDA CR-V

Available: Summer The next-generation CR-V will be based on the model first seen at the 2016 Los Angeles motor show. Arriving in Europe around 18 months later, the new CR-V will offer hybrid technology for the first time and will not be available with a diesel powertrain. The hybrid power unit was previewed in the CR-V prototype shown at last year’s Frankfurt motor show, offering zero emissions driving for short distances at low speeds, with the battery being regenerated under braking. The 2018 CR-V will also be specified with Honda’s 1.5-litre turbocharged petrol engine, with a choice of either six-speed manual or CVT auto.

CITROËN C5 AIRCROSS

Available: Late 2018 n European version of the C5 Aircross unveiled in China last year will be built in France n Qashqai rival should bring new customers to the Citroën brand in the UK n Initially front-wheel drive only, but possibility of four-wheel drive versions in future with plug-in hybrid technology n Engine line-up should be similar to the Peugeot 3008 n Expected to offer class-leading interior comfort and ride comfort

JAGUAR E-PACE

Available: Spring n Jaguar’s smallest SUV sharing its platform with the Range Rover Evoque and Land Rover Discovery n Offers front-wheel drive and four-wheel drive versions n Line-up includes in-house 2.0-litre turbocharged petrol and diesel engines, with CO2 emissions from 124g/km n Standard features include a 10-inch dashboard touchscreen n Expected to boost Jaguar sales further following the launch of the F-Pace in 2016

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ŠKODA KAROQ Available: January Škoda’s Yeti replacement is more mainstream, and an accomplished performer for those seeking an alternative to the Nissan Qashqai or Kia Sportage. An all-round family car.

SUBARU XV Available: January Based on the new Impreza, with extra ground clearance and a rugged styling kit, the XV operates in a niche for those who want all-wheel drive and a petrol engine.

MITSUBISHI ECLIPSE CROSS

Available: January Mitsubishi will have a more mainstream rival to the Nissan Qashqai when the Eclipse Cross launches in January. Initially available with a 163PS 1.5-litre turbocharged petrol engine, the Eclipse Cross offers a choice of manual or automatic transmissions and four-wheel drive on some versions. As Mitsubishi has been a pioneer in plug-in hybrid technology, it’s likely a plug-in hybrid version will be offered at some stage, and a diesel version is also expected. We think it will be a version of the 2.2-litre diesel engine currently used in the Outlander.

JEEP COMPASS

DS 7 CROSSBACK

Available: Now n Jeep offers a model aiming at premium rivals, such as the Land Rover Discovery Sport, BMW X1 and Audi Q3 n Front-wheel drive and four-wheel drive versions available, as well as a choice of turbocharged petrol and diesel engines n Four equipment grades offered in the UK, with Trailhawk providing maximum off-road ability n Prices from £22,995 on the road

Available: Now n First SUV from upmarket DS Automobiles aims to offer more for the money than premium rivals n Available with 130PS 1.6-litre and 180PS 2.0-litre BlueHDi diesel, or a 225PS 1.6-litre turbocharged petrol engine. n Active Scan Suspension monitors the road ahead, available on some versions n High-end features, such as night vision and semi-autonomous assistance

VOLVO XC40 Available: Spring n First compact XC model debuts new-generation ‘40’ series for Volvo n Standard touchscreen, digital instrument panel, navigation, voice control, LED headlights and 18-inch alloys n Initially offered with 190PS T4 and 247PS T5 petrol variants and 150PS D3 and 190PS D4 diesel, with D4 CO2 from 127g/km n Prices start at £27,905 on the road

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2018 LAUNCH GUIDE ELECTRIC AND HYBRID CARS

HYUNDAI KONA ELECTRIC Available: Late 2018 n Fully electric version of Kona compact SUV expected by the end of the year n Range on a full charge expected to be more than 200 miles n The Kona will be the second in a range of electric models from Hyundai n Minor styling changes expected compared with petrol and diesel models, such as exterior trim treatment

JAGUAR I-PACE Available: Spring n All-electric Jaguar is similar in length to the F-Pace SUV, but with a longer wheelbase for more interior space n Maximum range expected to be around 300 miles, with a power output of 400PS making it one of the fastest Jaguars on sale n Twin electric motors provide fourwheel drive traction n Prices are expected to start at around £60,000

HYUNDAI FUEL CELL VEHICLE Available: Late 2018 n Next-generation hydrogen fuel cell vehicle to replace pioneering ix35 FCV n Unique styling features will separate the new crossover model from the rest of the Hyundai range n Expected to have a significantly lower purchase price than £50,000-plus ix35 predecessor n Power output of 163PS and with denser hydrogen storage, maximum range could be close to 500 miles

NISSAN LEAF

Available: Spring The second-generation Leaf has a completely new look, with styling inspired by the latest Micra, launched in 2017. More importantly, the car will be capable of travelling greater distances between charges, with a maximum range of 235 miles on the NEDC system, compared with a best of 155 miles for the outgoing model. The electric motor is more powerful, with 150PS and 320Nm of torque, improving acceleration compared with the current Leaf. It will be available with new semiautonomous driving systems, including one that allows the car to brake and accelerate in slow-moving traffic without intervention from the driver.

KIA NIRO ELECTRIC Available: Summer Kia Niro Electric follows the launch of the hybrid in 2016 and plug-in hybrid in 2017, as the brand expands its range of electrified models, with prices likely to start at around £30,000.

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2018

AUDI E-TRON QUATTRO

Available: Late 2018 A direct rival for Tesla’s Model X and Jaguar’s I-Pace, the e-tron quattro will offer the practicality of an SUV shape, with an allelectric powertrain capable of travelling up to 300 miles.

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BMW GROUP Business Partnership

SERVICE AND MAINTENANCE. When ordering your BMW or MINI on the Business Partnership Programme you have the opportunity to include maintenance with your monthly rental. A maintained contract offers you and your company the convenience and reassurance of maintenance with a central point of contact. With total control over maintenance costs, you will never be faced with unexpected bills, can budget with confidence and manage company cash flow. Our maintenance team will work directly with your local BMW and MINI Centre, leaving you to get on with the minimum downtime possible. A maintained contract covers the following: • Repair and breakdown coverage from 37 months onwards on contracts over 3 years. • All scheduled and unscheduled servicing and repairs. • All tyre replacements and punctures.

• The replacement of brake pads and discs. • MOT costs and associated repairs. • Enhanced coverage for breakdown and recovery.

PERSONAL CONTRACT HIRE.

As well as business contract hire for businesses, the BMW & MINI Business Partnership Programme now offers Personal Contract Hire. Personal Contract Hire offers individuals the option of an initial rental followed by monthly rentals without the responsibilities associated with ownership.

HOW DOES IT WORK?

For Personal Contract Hire you will need to provide one of the following criteria prior to placing an order:

Choose the BMW or MINI vehicle that is right for you, your desired agreement length and annual mileage. Then arrange your monthly rentals so they work for you and leave the rest to us. When your agreement comes to an end, ensure you are within your agreed mileage, keep the model in good condition and then hand back the keys with nothing more to pay. Or take out a new agreement for the BMW or MINI of your choice.

• A copy of the company or cash allowance policy stating the cash allowance and entitlement. • A listed director email confirming that you are entitled to an allowance in lieu of the provision of a traditional company vehicle. • A copy of your contract stating that the car is required for your role. Find out more by visiting the website; bmwbusinesspartnership.co.uk

Official Fuel Economy Figures for the BMW range: Urban 15.3-72.4 mpg (18.4-3.9 l/100km). Extra Urban 29.4-72.4 mpg (9.6-3.9 l/100km). Combined 22.0-470.8 mpg (12.8-0.6 l/100km). CO2 Emissions 294-0 g/km. Official Fuel Economy Figures for the new MINI range: Urban 29.1-67.3 mpg (9.7-4.2 l/100km). Extra Urban 45.6-80.7 mpg (6.2-3.5 l/100km). Combined 38.2-117.7 mpg (7.4-2.4 l/100km). CO2 Emissions 169-55 g/km. Figures are obtained in a standardised test cycle. For plug-in hybrid and battery electric vehicles these figures are obtained after the battery had been fully charged, in case of plug-in hybrid vehicles and the i3 with Range Extender they are obtained using a combination of battery power and petrol fuel. All figures are intended for comparisons between vehicles and may not be representative of what a user achieves under usual driving conditions. The BMW i, iPerformance and MINI Cooper S E Countryman models are electric or plug-in hybrid vehicles that require mains electricity for charging.


EXPLORE MORE CORNERS. THE NEW MINI HATCH.

To find out more, visit minibusinesspartnership.co.uk

MINI Business Partnership

Driving Business - Spring 2018  

Everything you need to know about managing vehicles. Comply with the latest legislation and learn from best fleet practices.

Driving Business - Spring 2018  

Everything you need to know about managing vehicles. Comply with the latest legislation and learn from best fleet practices.

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