Government Say There Will Be No Company Car Tax on Electric Cars

Government Say There Will Be No Company Car Tax on Electric Cars

Excellent News (At Last!) For Company Car Drivers

Company car drivers choosing a pure electric vehicle will pay no benefit-in-kind (BIK) tax in 2020/21 the Governement revealed this week.

After the long-awaited review of WLTP and vehicle taxes, The HM Treasury has shelved the previously published BIK rates for 2020/21.

There are two new BIK tables for company car drivers; a table for those driving a company car registered after April 6, 2020, and one for those driving a company car registered before April 6, 2020 (see below).

 Table 1 of BIK company car taxTable 2 of BIK company car tax

How The Changes Will Be Implemented.

For cars first registered from April 6, 2020, most company car tax rates will be reduced by two percentage points.

Company car drivers who have Electric vehicles with zero tailpipe emissions will be taxed at 0% –  paying no BIK tax at all.

Furthermore, the zero percentage rate is also extended to company car drivers in pure electric vehicles registered prior to April 6, 2020, who were already looking forward to a much reduced rate of 2% for 2020/21.

For company cars registered from April 6, 2020, with emissions from 1-50g/km and a pure electric mile vehicle with a range of 130 miles or more – the zero percentage rate will also apply.

Will There Be Increases?

In both these cases, in 2021/22 they will increase to 1% and then 2% in 2022/23.

For pure electric company cars registered before April 6, 2020, will also increase to 1% and 2% in subsequent years, 2021/22 and 2022/23.

However, company cars registered before April 6, 2020, with emissions from 1-50g/km and a pure electric mile range of 130 miles or more attract a 2% BIK rate in 2020/21 and stay the same for the two subsequent tax years.

From 2023/24, fleets will have one BIK tax table again as the rates are realigned.

What The Government Has Said

“by providing clarity of future the appropriate percentages, businesses will have the ability to make more informed decisions about how they make the transition to zero emission fleets”.

“Appropriate percentages beyond 2022-23 remain under review and will be announced at future fiscal events.

“The Government aims to announce appropriate percentages at least two years ahead of implementation to provide certainty for employers, employees and fleet operators.”

So what does this all really mean to the company car driver?

We are being told that by 2040 you won’t be able to buy a new combustion engine car which is why there seems to have been an explosion of electric vehicles in both full totally electric or hybrid form and this will continue to grow in numbers. So the choice is getting better and the incentives from the government are increasing.

It is time to switch and as a company offering company cars as part of their package do you understand how it can help reduce cost and create a better carbon footprint.

Most companies and their drivers that we speak to don’t really understand what is the best way forward and lets be honest it is a complicated process.

 

How To Make The Switch

We are very interested in talking to companies who want to look at this in more detail and explore the possibilities of making the change. If you would like to find out more about this then complete the details below and we’ll give you a call. Or email us for more details.

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New Ducato Electric BEV Ideal For Fleet Managers

New Ducato Electric BEV Ideal For Fleet Managers

Strong Focus On Total Ownership Makes The New Ducato Electric A Real Viable Option For Fleet Managers.

With the launch of the new Ducato Electric, the first all-electric BEV (Battery Electric Vehicle) from Fiat Professional – it seems to us pretty clear that Fleet Managers are at the forefront of the sales pitch.

What Ducato Electric Brings To The Table

Available from next year, the Ducato Electric will feature modular battery size options and charging configurations, with a range of between 136 to 223 miles (NEDC cycle).

Fiat quote maximum power of 90kW and maximum torque of 280Nm. Energy use will be preserver by limiting the top speed to 62mph. Fiat also claim best-in-class load volumes from 10 to 17m3, and a payload of up to 1,950kg.

Is The Market Ready For The New Ducato?

The Ducato Electric has been developed using a year’s worth of real-word customer data relating to how they use their commercial vehicles. From this data, Fiat has established that more than 25% of the market already has a “BEV attitude”. They know that their customers are ‘ready and waiting for a mobility change’.

The pilot projects Fiat have conducted involve ‘large companies’, and enable Fiat to ‘identify all specific uses and demands which in turn assists with individual customisation and configuration’.

From it’s data, Fiat believes that the early users of its BEVtechnology will be postal and courier services, home deliveries, local transport, and those regularly accessing city centres. And with clean air zones coming into most major UK Cities very soon – another huge benefit box is ticked.

What Is It Up Against?

In contrast to Fiat’s BEV strategy for its commercial vehicle offer, Ford believes the route to full electrification will be a transition that incorporates hybrid and plug-in hybrid.

A fleet of 20 Transit Customs in London has recently been trialled by Ford using their “plug-in” hyrbid technology. The initial pilots have ended, giving more potential customers the opportunity to test the vans.

Owen Gregory, Ford UK fleet director, said:

“We see a balance and blend of technologies that bring difference parts of the transition in terms of electric performance and availability. The use case for full electric for CVs is narrow but we are able to open up the use case with plug-in.”

Keep In The Loop

To find out more about this or any of the future vehicle releases that could benefit your fleet then call us on 01543 229722 or fill in the form below to receive our updates

Towing Work Trailers? Are You Breaking The Law?

Towing Work Trailers? Are You Breaking The Law?

Fleet Operators Warned About Towing Trailers.

Fleet operators and drivers are being warned by the License Bureau to ensure they understand the law relating to towing loads.

There are around 4,000 reported incidents a year involving all forms of trailers, according to the Bureau and they say it is crucial operators do not fall foul of the law.

The Licensing Bureau say that the actual date on which an individual passed their test – and the trailer they are towing – seems to be the cause of most of the confusion

What Are The Rules?

Drivers passing their test on or after January 1, 1997, will have a Category B licence. This means they can drive vehicles up to 3,500kg maximum authorised mass (MAM) with up to eight passenger seats (with a trailer up to 750kg).

These drivers can also tow heavier trailers if the total MAM of the vehicle and trailer is not more than 3,500kg.

If however, a driver has a Category BE licence they can drive a vehicle with a MAM of 3,500kg with a trailer. The size of the trailer depends on the BE ‘valid from’ date shown on the licence. If the date is: before 19 January 2013, they can tow any size trailer; on or after 19 January 2013, they can tow a trailer with a MAM of up to 3,500kg.

Malcolm Maycock, managing director of Licence Bureau, said:

“This is a complex area due to the different variations in licences and their respective entitlements. It’s also an area that arguably bypasses many businesses, as well as individuals, due to working age demographics and a legacy understanding.

“However, chances are that this area is at its most prolific right now as the transitional licence demographic takes on driving and towing responsibilities.”

 

 

The Implications For Your Business

The licence offence for the driver carries a minimum fine of £100 and three penalty points. From a company viewpoint however, the damage can have wider implications, as compliance is compromised and insurance invalidated.

Maycock goes on to say;

“Ultimately, the responsibility for ensuring any work-related journey meets compliance standards is that of the fleet or human resource manager.

“Quite simply they need to make sure licence checks are carried out correctly, drivers are aware of what they can and cannot drive, and operational procedures are developed to suit.”

Ensuring You Comply

To minimise the risk – the License Bureau has given the following checkpoints to help Fleet Managers and companies ensure they are complying:

  1. Treat everyone as not entitled to drive until you have confirmed they are.
  2. Identify which vehicles are fitted with tow bars – this needs to include company cars where the towing is outside the workplace for pleasure such as caravans and horseboxes. They are still your vehicles.
  3. Confirm who will drive as you are possibly allowing non-employees to drive them when not at work.
  4. Invest in training. Any driver towing a trailer needs training as this is a tool of work and unless they have passed B+E after 1997 will not have had any.
  5. Ensure the driver has current competence in towing.
  6. Check if the trailer in question, when being used commercially, has any secure load issues.
  7. Risk assess the vehicle. The vehicle manual will specify the maximum trailer weights.
  8. Risk assess the trailer and ensure the weight is suitable for the vehicle.
  9. Risk assess the drivers against the vehicle/trailer combination.

Does your company regularly tow trailers? Are you now unsure as to whether you comply? Would you need help actioning these points? If so, call us on 07971 865102  or email us for more details.

Are Plug-In Hybrid Electric Vehicles (PHEV) The Way Forward?

Are Plug-In Hybrid Electric Vehicles (PHEV) The Way Forward?

Ford Believe That PHEV’s Are The Ideal Solution.

It seems that Ford have concluded that plug-in hybrid electric vehicles (PHEVs) are “the ideal solution” for urban and extra urban operations, as it moves into the latter stages of its pilot programme with 15 fleet operators.

The trial, which started in London a year ago, is supported by a £4.7 million grant from the Government-funded Advanced Propulsion Centre.

Ford’s PHEV Vans

It involves 20 Transit Custom PHEV vans which are powered by a lithium-ion battery, capable of 31 miles of zero-emissions travel, with Ford’s 1.0-litre Ecoboost petrol engine operating as a range extender. The engine does not drive the wheels, it simply helps charge the on-board batteries on the go.

The battery pack is located under the floor so the Custom PHEV offers the same load volume as the standard van, with a one-tonne payload capacity.

The test fleets varied from taxi firm Addison Lee to the Met Police and delivery operator DPD to Heathrow Airport. Each took delivery of vehicles at different points over the trial period but all will run them for a full 12 months.

The Results Of The Test

Ford has now analysed the data from more than 110,000 miles of driving. It found that the vehicles ran on electric-only for 35% of the time in total, rising to 49% in greater London and 69% in central London. Average daily mileage ranged from less than 20 miles to 110 miles.

Mark Harvey, director Ford Commercial Vehicle Mobility Solutions, said

“It’s the right answer for urban vehicles because they are zero-emission capable and have no compromise on range, volume or capacity,” 

The Custom has four modes: EV Auto (where the best mode for the journey is selected), EV Only (electric only), EV Later (petrol only, conserving the battery for later use) and EV Charge (which recharges a depleted battery during higher speed driving, such as on the motorway).

By making adjustments to the way drivers used the electric powertrain, particularly for those commuting into the city for business, fleets were able to squeeze much higher usage from zero emissions travel.

Harvey continues…

“One driver started using EV Only mode from the start of his journey but he had no home charging so he was only starting with 35% charge. The battery was running for 35.8 km (22 miles) a day and the range extender for 121 km (75 miles).

“We gave him some training so he started the day using EV Charge to recharge the battery, then switched to EV Only in central London. This gave him 75 km (47 miles) of pure EV.”

The Custom PHEV will go into full production towards the end of the year with first customer deliveries expected early 2020.

Improvements Made Following The Test

Ford has made a number of enhancements following the pilot, including installing a more powerful 13.6kWh battery. This will enable full charging within three hours via rapid charge (22kWh) and five hours on domestic (7.2kWh)

It has also improved the feedback information on the driver displays and moved the charging point to the front bumper for better access. Further trials are due to begin this year in Cologne, Germany, and Valencia, Spain.

Harvey said the total cost of ownership model varies dependent on usage – Ford is “still working on” establishing the ‘sweet spot’ for daily/weekly mileage – but it could be comparable to diesel alternatives. Additional savings can be achieved if operating inside the London Congestion Zone.

Ford has kept in close contact with the residual guides and is hopeful the Transit Custom PHEV will get strong values, expected to be revealed within the next couple of months.

Future Developments of the Ford PHEV Range

The PHEV will be extended to an eight-seat Tourneo Custom people mover version later this year with an EV-only range of 31 miles (total range of 310 miles). Official fuel consumption is 85mpg, with CO2 emissions of 75g/km.

Ford has also outlined plans to join the growing throng of manufacturers with a full electric 3.5-tonne light commercial vehicle, although its BEV Transit will not be launched until 2021, more than a year after the Volkswagen Crafter and Mercedes-Benz Sprinter and two years after the Renault Master.

Roelant de Waard, Ford of Europe vice president of marketing, sales and service, said an electric van was “critical for urban areas”.

He described the electric Transit as a “fleet owner’s dream”, adding that it would be available in multiple body styles with no compromise on payload (one tonne).

No details on range are available, although de Waard said:

“We see this van as last mile for inner city use. Professional operators don’t want to pay for what they don’t use so we have to tailor the range.

“If they don’t need more than 80km, they won’t want to pay for 200km. You need a lot of batteries for long range and they are expensive.”

He also outlined details of a two-tonne Transit Custom mild hybrid, which will be launched later this year, promising to improve urban fuel efficiency by up to 8% compare with the 2.0-litre diesel equivalent.

Would you like to find out more about PHEV Cars available? Call us on 07971 865102 for the latest deals on electric and hybrid cars.

How Much Can Car Leasing Save You?

How Much Can Car Leasing Save You?

How Much Can Car Leasing Save You?

leasing versus purchasing

The Answer : A Lot! Prepare To Be Amazed!

More and more people are turning to car leasing for their own personal use. In fact, it’s the biggest growth area in acquiring a new car. Why is this though?

Well the answer is it can be a lot cheaper – and for most vehicles it should be cheaper – to get a Personal Contract Hire agreement (leasing) over a Personal Contract Purchase agreement – which is what a main dealership would normally offer.

Now of course, the thing to bear in mind here is that we are legally obliged to say that everybody’s personal circumstances are different and you should always weigh up your options based on your own needs.

But is there really that much difference?

A Comparison.

We wanted to highlight the potential savings of leasing a car over purchasing one through a Personal Contract Purchase agreement.  Here you normally pay a deposit, a fixed monthly amount and then a “balloon” payment (the GFV – Guaranteed Future Value) at the end to buy the car outright – or hand the car back.

We got 3 PCP quotes on 3 different vehicles to compare against our PCH terms.

We wanted to look at a broad cross section of cars – picking a large executive saloon, a mid-sized family car and the last one was a popular small, 1 litre eco-box.

Frankly, the results are staggering.

fleet cars

The Figures…

PCH - PCP savings

Now, the first thing we should say are that these figures are obviously dependent on personal circumstances. Credit rating and your personal circumstances can affect the amounts in both instances.

The deposits shown in these figures show the PCH deposit being matched to the deposits quoted for the PCP figures for a like-for-like comparison.

But still it certainly does start to explain the shift towards car leasing. It also seems that the more expensive the car, the bigger savings to be had – with a more than 50% saving on the BMW.

So Why The Huge Difference?

The Difference Between PCH & PCP

With a PCH you are paying for something different than a PCP. With a PCH agreement you are paying for the anticipated depreciation value of the vehicle for the term you have it for (usually 3-4 years).

With a PCP agreement you have the option to purchase. This means that after the agreement term you need to make a final payment to buy the car outright – or you hand it back.

The main reason though for the difference in cost is that with PCH agreements, the manufacturers provide extra levels of support on special offer deals.

deals on Fleet cars and vans

So What’s The Catch?

As my old man always used to say – there’s no such thing as a free lunch – or in this case a cheaper lunch.

The catch with PCH is of course that you don’t actually own the vehicle as you have to return the car at the end of the agreement – there is no option to buy it outright.

There are terms of use as well. So you will have a mileage limit to adhere to – based on your needs. The car also has to be returned in a good condition – but these also apply to PCP agreements.

BUTHere’s the good news!

  • At the end of the term, you can get another new car for the same or similar fixed fee.
  • You don’t have to worry about the depreciation value of the car.
  • You don’t have to worry about that final payment and;
  • You don’t have to worry about the rigmarole of selling the car to get a new one – or losing out heavily on trade-in value.

So if you are like the increasing number of motorists acquiring new vehicles each year – and can handle the fact that you won’t actually own the car – you can save a lot of money on your monthly motoring costs.

Choosing Cheshire Fleet Solutions.

As we have shown we can get fantastic Personal Contract Hire deals. We have access to literally thousands of cars of most makes and models. We’re not the sort of company who will spend all day uploading all the cars to our website – we like to speak to people.

If you would like to find out more about leasing your next car, pick up the phone, give us a call on  01543 229722 or email us using the form below and tell us what car you need – and we’ll find one for you. 

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“After using Matt at Cheshire Fleet Solutions to purchase a Peugeot Expert van for my business last year and I am now delighted to say we have just taken delivery of our new Mazda CX5 as our family car. The whole process was very easy and after shopping around also very competitive. We are now looking forward to hassle free motoring for the next three years. We would highly recommend this company to both personal and business customers.”

Adrian Booth

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More Great Deals On Cars

We can source cars from thousands of makes and models. Looking for something in particular? No problem. Get in touch and we’ll find you a great deal.

Personal Contract Hire prices INCLUDING VAT Images are for illustration purposes only.

 

Fiat Abarth 500 1.4T -Jet 145 3DR

£194.24 Per Month

Details
  • Engine: 1199cc – Petrol
  • Transmission: Manual
  • MPG (Combined): 47
  • CO2 Emissions: 151.0 g/km
  • Road Tax: £140

Nissan Qashqai 1.5 dCi N-Connecta

£238.80 Per Month

Details
  • Engine: 1461cc – Diesel
  • Transmission: Manual
  • MPG (Combined): 70.6
  • Emissions: 103.0 g/km
  • Road Tax: £20

ALFA ROMEO GIULIA 2.0TB 280 Veloce

£417.59 Per Month

Details
  • Engine: 1995cc – Diesel
  • Transmission: Automatic
  • MPG (Combined): 40.9
  • Emissions: 160.0 g/km
  • Road Tax: £500

Interested in Leasing Your Next Car? Call Now On 01543 229722

Cheshire Fleet Solutions introduce business to Total Fleet Services, Total Vans and Total Cars of Security House, Littleton Drive, Huntington, Cannock WS12 4TS which are trading names of Hanborough Enterprises Ltd. We are an Appointed Representative (Firm Reference Number 823971) of Hanborough Enterprises Ltd who is authorised and regulated by the Financial Conduct Authority for consumer credit activities (Firm Reference Number 631448). You can check this on the FCA Register by visiting www.fca.org.uk or by contacting the FCA direct on 0300 500 8082. We are an independent vehicle finance broker and we operate with a panel of carefully selected funders. We may receive commission and/or other benefits from the finance provider if you enter in to an agreement with them.

Cheshire Fleet Solutions registered trading address is 5 Exeter Close, Cheadle Hulme, Stockport, Cheshire SK8 6JE. Vat no 507 9518 96. Data Protection Licence ZA463684

We are a Credit Broker and not a Funder or a Lender