HMRC will introduce an advisory fuel rate (AFR) for pure electric cars from September 1 at 4 pence per mile (ppl).
The new rate, called the Advisory Electricity Rate (AER), has been set at 4p per mile and will be published alongside AFRs for petrol, diesel and LPG (liquefied petroleum gas) cars based on engine size.
Colas Rail, one of the UK and Europe’s leading suppliers of railway infrastructure services, has signed a solus outsourcing agreement with Ogilvie Fleet for the supply and management of almost 900 company cars and light commercial vehicles.
The new deal is the largest sole supply contract by fleet size won by Ogilvie Fleet, one of the UK’s fastest growing vehicle leasing and fleet management companies with almost 17,000 company cars and vans on its books.
Ogilvie Fleet won a competitive tender for the supply of cars and sub-3.5 tonne vans on a full maintenance contract hire arrangement with the addition of accident management. Furthermore all new vans supplied will be speed limited to help reduce Colas Rail’s carbon footprint.
Following Ogilvie Fleet’s appointment on a four-year contract, the company is in the process of delivering an initial order for 175 Ford Transit Connects and Transit Double Cabs following fitting out by System Edstrom.
Colas Rail, which is headquartered in London with offices nationwide, operates an all-Ford light commercial vehicle diesel fleet numbering some 800 units and a 90-strong multi-badge company car fleet. All vehicles are operated on a 36-month replacement cycle.
Are you confused by the recent spate of changes to the treatment of company car taxation? Has the Government’s demonization of diesel thrown your fleet policy into disarray? Are you in a quandary as regards how this will impact your vehicle fleet?
At Ogilvie Fleet we are working closely with our customers, providing guidance through this transitionary period by helping clients to understand the implications and how to mitigate the consequences.
Which models and fuels should you be considering for the future? How long should you keep the cars? Should you remove the Cash Allowance option completely, extend it to other drivers, reduce or increase it?
These are all questions which need careful consideration as the extra costs involved will be onerous if the situation is not addressed, but manageable, with a little foresight and preparation.
Changes which impact the Company:
- New Diesel tax rates came into force in April 2018
- VED rates for diesels increased in April 2018
- WLTP (Worldwide Harmonised Light Vehicle Test Procedure) is being introduced as a new method to calculate MPG and CO2 emissions and will result in an increase in tax and NI contributions
- Capital Allowance thresholds have changed. Generally, they will be less beneficial
- As of 2019 a new accounting standard will be introduce which will eventually bring all leasing assets onto the balance sheet, affecting the strength of the balance sheet
All of the above will have an impact in the whole life costs of your fleet
Changes which impact employees:
- OPRA – where a choice of car or cash allowance is offered the driver will be liable for tax on the greater monetary value. Many drivers may still be unaware of the impact to their personal taxation and the options available to them
- The diesel surcharge rising from 3% to 4% will impact a drivers’ benefit in kind
- WLTP will have a further impact on the taxable value to drivers’
Ogilvie offer a number of alternative mobility solutions. If you are unsure of where you stand and would like guidance on how this will affect your company and your drivers, contact your Ogilvie Area Manager here.
The Finance Bill will amend two aspects of how cars and vans are taxed if they are subject to OpRA rules from 6 April 2019. Firstly, when considering the ‘amount foregone’, this will in future include amounts in respect of the provision of the vehicle plus any amounts in respect of any connected costs. This means that the current practice of apportioning the ‘amount foregone’ for cars or vans will no longer be appropriate.
The second change affects capital contributions. The amount of capital contributions taken into account will be reduced proportionally from 6 April 2019 if the car is only available for part of the tax year.
A new exemption will apply to workplace charging facilities for employee-owned electric and hybrid cars, applying retrospectively from 6 April 2018. Where employer-owned electric cars are charged at the workplace, this is already exempt from an income tax charge.
New easements will be introduced for drivers of emergency vehicles, some of whom were negatively affected by the new ‘use of assets’ legislation introduced in 2017. The changes will apply retrospectively from 6 April 2017.