t n e t n Co
E 03 ISSU g 2013 Sprin
A word from
THE DIRECTOR Welcome to the Spring Edition of our newsletter ‘Fleet Express’; which has a slightly refreshed look and content which we trust you will find informative. Hopefully the cold weather is now behind us and we can finally look forward to Spring and Summer. The last few weeks have been a busy time as we have gone live with our new operating system; I hope any disruption to normal service has been minimal as my team have been working hard to ensure continuity for all clients. We hope in the long term you will enjoy the benefits as we enhance the overall service we provide. We have also expanded our team with new additions to our Marketing and Maintenance departments.
Once again, thanks for your continuing support of Days Contract Hire. by Aled Williams
w: dayscontracthire.co.uk
t: 0845 815 0019
CHANGES TO TAX
Introduction
Class 1A National Insurance Contributions
Tax changes taking effect this April may affect your employees, your business and the company cars you choose to include in your fleet. Here we explain how you might be affected and how to How will employer’s Class 1A NIC be affected? Class 1A NIC is due on most benefits including company cars. It is calculated by multiplying the employee’s mitigate your total fleet costs. benefit in kind by 13.8%. As the driver’s benefit in kind will increase over the next 4 years, the employer’s Class 1A NIC will rise too.
The driver’s perspective
How will these changes affect a driver’s income tax charge?
Capital allowances
Most company car drivers are subject to income tax on the benefit in kind arising. Broadly, the benefit in kind is calculated by multiplying a car’s list price by an appropriate percentage based on its CO2 emissions.
Capital allowances enable businesses to claim tax relief for the depreciation of assets such as cars. For example, a car bought for £20,000 and sold for £8,000 is eligible for capital allowances of £12,000.
Although the original proposals to tax ultra-low emission cars (emissions up to 75 g/km) will be How are capital allowances changing from April 2013? scaled back following amendments announced in last month’s Budget, changes to the appropriate percentage to be introduced over the next four tax years will increase the income tax paid by The thresholds governing the rate at which allowances may be claimed will every company car driver. Those driving diesel cars can, however, look forward to the abolition reduce. of the 3% diesel supplement in 2016. Purchases from April 2013 before April 2013 Will a company car still be cost effective? Yes. Honda’s new generation Civic demonstrates this perfectly. For a 1.6 i-DTEC Civic SE-T bought in April 2013 with a list price of £20,340 and CO2 emissions of 94 g/km, the income tax on the benefit in kind over the next 3 years would be: Basic rate Higher rate
2013/14 2014/15 2015/16 Total £529 £570 £651 £1,750 £1,058 £1,140 £1,302 £3,500
Models CO2 Toyota Auris 1.8 VVTi Icon 87 g/km Ford Focus 1.6 TDCi 115 Zetec 109 g/km Vauxhall Astra 1.7 CDTi ecoFLEX 130 Exclusiv 99 g/km VW Golf Mk7 1.6 TDi 105 S
List price 2013/4 2014/5 2015/6 Total Income tax charge – Basic rate £19,995 £400 £440 £520 £1,360 £18,840 £603 £641 £716 £1,959 £20,670
£579
£620
£703
£1,902
Bluemotion
£19,510
£546
£585
£663
£1,795
The employer’s perspective
from 111 g/km to 160 g/km exceeding 160 g/km
How are capital allowances calculated?
A company buys a Volvo V40 D3 SE with CO2 emissions of 114 g/km on 1 May 2013, which it sells in 2015. It qualifies for an 18% writing down allowance as follows:Year ended 31 December 2013 Cost Writing Down Allowance (“WDA”) at 18% Tax written down value (“TWDV”) c/f
Writing down allowances £22,000 £3,960* £18,040
Year ended 31 December 2014 WDA at 18% TWDV c/f
£3,247* £14,793
Year ended 31 December 2015 Proceeds
£10,000
TWDV c/f
£4,793
*WDA’s offset in Fleet Express
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CO2 not exceeding 110 g/km
Cars with average emissions
The following list of leading fleet cars emphasises that low emission company cars need not be expensive and can be extremely tax efficient.
99 g/km
First year allowance CO2 not exceeding 95 g/km, falling to 75 g/km in 2015 Writing down allowance - main pool at 18% pa from 96 g/km to 130 g/km - special rate pool at 8% pa exceeding 130 g/km
The TWDV will qualify for capital allowances until reduced to nil, which could take more than 40 years.
What difference does it make?
Cars with low emissions Rather than the Volvo V40 D3 SE if the company bought the equivalent D2 R Design, with CO2 emissions of 94 g/km, for £22,000, it would qualify for first year allowances: Year ended 31 December 2013 Cost First Year Allowance TWDV carried forward
The lease rental restriction
Capital allowances £22,000 £22,000 £Nil
Tax relief is obtained by deducting the lease rental cost (including service and maintenance) from a company’s taxable income. From April 2013 the flat rate disallowance of 15% will apply to cars with emissions exceeding 130 g/km which will increase cost. Therefore, assuming an effective rental of £360pm, a car with CO2 emissions of just 131 g/km could cost a company £149.04 more per year in increased tax than a car with CO2 emissions of 130g/km.
If the car was sold for £9,000 the excess relief of £9,000 claimed in the first year must be repaid. However, as this is done by reducing the TWDV of the main pool this ‘claw back’ could take more than 40 years.
Whole life costs
Cars with high emissions Cars with emissions above 130 g/km qualify for capital allowances at just 8% per year which delivers tax relief over a 100 years!
Whole life costs should take account of all costs associated with buying or leasing, including the tax relief available. For example, the whole life costs of a leased car should include the effective rental, maintenance, insurance, the tax relief available including any lease rental restriction, and Class 1A NICs.
Will contract hire be affected?
Why are whole life costs important?
Yes. From April 2013 leasing companies cannot claim first year allowances. Realistically, rentals should therefore rise, but leasing companies can reclaim VAT on their cars and many fleets can reclaim 50% of the VAT on the rental. This should still generate a significant advantage to most businesses.
Many businesses choose cars by reference to the monthly rental or list price. But this has little bearing on the true cost of the car. For example, a car with CO2 emissions of 194 g/km and a car with emissions of just 94 g/km could have a similar rental. But, the Class 1A NIC on the first car is three times greater and it is subject to the lease rental restriction. The whole life costs of the first car could be significantly higher than those of the second and it’s likely to have much higher running costs.
How can fleets adapt? With an ever increasing choice available, fleet managers should strive to maintain a fleet of low emission, tax efficient company cars.
How are whole life costs calculated?
How should we manage our fleet costs? A cost conscious fleet operator should minimize the CO2 emissions of his fleet, ideally excluding cars with emissions above 130 g/km. Working within that limit, our Account Managers can help you identify the most tax effective, fuel efficient cars for your fleet, minimising your whole life costs without restricting employee choice.
5
More powers for police to take action against motorists with poor eyesight Specsavers welcomes announcement EMPLOYERS and fleet managers are being warned by Specsavers Corporate Eyecare of a new system that allows an employee’s driving licence to be revoked within a matter of hours. Specsavers welcomes this announcement* that the police will be able to take immediate action against motorists who fail roadside eyetests. Suzanne Randall, corporate account manager for Specsavers Corporate Eyecare said: ‘This is particularly relevant for employers. The Health and Safety Executive (HSE) states that an employer’s duty of care extends to all work activities, including driving for work purposes - even if this constitutes only an occasional short trip for a meeting. It’s very simple for employers to ensure their staff have eyesight that’s good enough for driving, and the last thing they’d want is to have staff off the road because their licence has been revoked due to poor eyesight. This is a chance for employers to put in preventative measures now.’
All drivers must be able to meet the eyesight standard for driving by reading a number plate from 20.5 metres which can be easily checked by the police at the roadside. A motorist who drives when unable to meet this standard is committing an offence and will have their licence revoked by the DVLA. Once revoked, a licence will not be returned until a driver can demonstrate that their eyesight meets the required standard. Paul Carroll, director of professional services at Specsavers, says: ‘We fully support Road Safety Minister Stephen Hammond’s announcement that enables the Police to take immediate action against motorists who fail road side eye tests. We have long campaigned around the importance of drivers taking responsibility for their eye health, ensuring they have regular eye examinations and wear the correct eyewear. This decision is definitely a step in the right direction to making our roads safer.
‘In 2013 we will be working with a number of governing bodies and driving organisations to push for all drivers to have regular eye examinations or, at the very least, to provide evidence of a recent eye examination when renewing their driving licence.’ Cassie’s Law Showing the very real danger that this change hopes to address, the new system was petitioned for as ‘Cassie’s Law’ after Cassie McCord was killed by a driver who had failed a roadside eyesight check. The tragedy occurred three days after the failed test but before the DVLA had officially revoked the driver’s licence in writing.
*Further information regarding the announcement can be found at: http://www.dft.gov.uk/dvla/pressoffice/pressreleases/07022013.aspx
87
PROTECTION OF FREEDOMS ACT
From October 1st 2012, wheel clamping by private companies has been outlawed in the United Kingdom. This welcome change to the law, however, is something of a mixed blessing for companies running vehicle fleets. The Protection of Freedoms Act 2012 has made it a criminal offence to immobilise or remove vehicles without ‘lawful authority’. This puts an end to the shady industry of so-called ‘cowboy clampers’, unscrupulous operators who were charging often extortionate fees to release motorists’ vehicles. Lawful authority, for the purposes of the Act, is held by: The owner of the vehicle – who may clamp his own vehicle, to prevent theft; The police – where vehicles are abandoned or obstructively or dangerously parked; Local authority – in relation to council-run car parks and on-street parking; The DVLA and VOSA – for non-payment of excise duty or unroadworthy vehicles; Various other groups under railway, airport and harbour byelaws. In certain cases, the holder of lawful authority may contract-out the power to clamp to private companies (e.g. a company working on behalf of the local council may have powers of clamping and removal). 9
However, the Protection of Freedoms Act also introduced new law in the area of parking charges on private land. Such charges differ from penalty charge notices issued by councils or fixed penalty notices issued by the police, in that their basis is in the law of contract or trespass rather than an Act of Parliament. Prior to 1st October 2012, where a parking charge was issued by a private company, it was only the driver who could be held liable. Therefore, registered keepers of vehicles who were not the driver (such as lease companies) were not obliged to pay demands for parking charges issued on private land; nor were they obliged to release any information about their customer without a court order. The Protection of Freedoms Act has altered this position by introducing ‘keeper liability’. This means that for parking charges issued after 1st October, the parking company can request payment from the registered keeper of the vehicle where driver or hirer details are not provided. The effect of this is that when Days Contract Hire receives notice of a parking charge issued on private land, we must now transfer liability for the charge to our customers as with council-issued penalty charge notices and police-issued fixed penalty notices. As a result of these changes, Days Contract Hire urges all drivers to ensure they check parking restrictions whenever parking their vehicle, whether on private land or anywhere else, to avoid falling foul of terms and conditions and incurring charges.
CONGESTION CHARGES
Transport for London is currently consulting with the public over proposed changes to the Congestion Charging Scheme. The changes, which include a £10 increase in the amount of the Penalty Charge and an end to the option to pay the Congestion Charge in shops and petrol stations, could be brought in later this year. Of most interest to fleets operating in London will be the proposed removal of the Greener Vehicle Discount, which allows vehicles emitting 100g or less of CO2 per kilometre to enjoy a 100% discount from the £10 per day Congestion Charge. Under the proposed changes, the Greener Vehicle Discount (which itself replaced the Alternative Fuel Discount) would be superseded by a new Ultra Low Emission Discount from July 2013. Only vehicles emitting 75g/Km CO2 or less will be eligible for the new Discount. Vehicles which are currently eligible for the outgoing Greener Vehicle Discount will then likely have their existing registrations extended for two years, expiring in June 2015. The changes have been proposed in reaction to the greater number of vehicles which are now eligible for the Greener Vehicle Discount. By tightening the criteria, Transport for London hopes to reduce the number of vehicles travelling in London and in turn reduce overall CO2 emissions from cars on the capital’s roads.
AACT
Days Contract Hire can register any vehicle you lease from us for the Greener Vehicle Discount on your behalf. To arrange for your vehicle to be registered for the discount, please contact our Maintenance team on 01792 222190 who will be happy to assist. Further information about the current Transport for London consultation can be found at: http://consultations.tfl.gov.uk/roads/ congestioncharging We will keep you informed of the outcome of the consultation as soon as it is made public. Should the proposed changes go ahead, customers who currently have vehicles registered for the Greener Vehicle Discount will be contacted directly with further advice.
Jordan Gibbs Previously Fleet Administrator in the Purchasing Department, has now joined Client Support Rachel Thomas Has joined the team as Marketing Co-ordinator Jay Lovell Previously a member of the Maintenance Department, now Client Development Executive
10
Louise Godfrey Has returned to Client Support after enjoying her maternity leave
STAFF NEWS
Gavin Williams Has joined the team as Fleet Maintenance Controller
CHARITY
Days Contract Hire selected Tŷ Olwen as our nominated charity for 2013. The Tŷ Olwen Trust was formed in 1981 with the purpose of supporting the Tŷ Olwen Hospice, a specialist Palliative Care Unit within the Cancer Directorate of the Abertawe Bro Morganwg University Health Board. Over the years the Tŷ Olwen Trust has, like the service, developed to support the Home Care Services, Day Care facilities and Hospital based services. Tŷ Olwen has a strong financial commitment from the NHS to fund the day to day running of the service. However, it is necessary for the Tŷ Olwen Trust to raise additional funds to provide the level of care they feel their patients and families deserve. To date we have raised over £1000 for the charity.
“We would like to thank all the staff at Days Contract Hire for their commitment, effort and generosity to our charity.” -Helen Murray, Chair-
man at Tŷ Olwen Trust
50
THE FUTURE FOR COMPANY VEHICLES? The Renault Twizy arrived in our offices last week and it got us wondering, is this new face of the fleet industry? Probably not, but things are definitely heading in the right direction with the benefits for choosing cars with lower CO2 emissions. When it arrived in our office last week, Sales Manager Roger Kelly couldn’t wait to take it for a spin!
“The Twizy would be at home in the busy city, it’s electric drive gives responsive take off at traffic lights and junctions, it’s easy to park and has excellent manoeuvrability”
There is an increase in the types of eco-friendly vehicles beginning to emerge, but could this become the future for company vehicles? The Vauxhall Ampera is a plug in hybrid. A fully paid up electric family car, with a compact four cylinder combustion engine included under its bonnet for backup. The Nissan Leaf is a 100% electric car, which claims a useable range of around 100 miles per charge. The Renault Twizy certainly caused some glances driving through a South Wales village on a cold, windy April day, but would certainly seem at home in the city. We’d love to hear your thoughts on whether or not the EV’s could represent the face of the fleet industry in years to come.
If there was ever a time to run a leaner, greener fleet, the time is now It all comes down to pounds. If you implement green fleet management practices you will see your company save money The green evaluation of your fleet is approached from 3 different perspectives: Vehicle choice – are there lower carbon options which also deliver the right answers on cost and desirability? If so, how do you best influence driver choice?
CORPORATE SOCIAL RESPONSIBILITY Fuel economy – regardless of the vehicle, how do you impact driver behaviour to achieve the optimum mpg? Mileage – what initiatives would encourage reductions in overall mileage and in turn, reduce emissions and cost? Low CO2 emission cars are not only “Greener” but are also usually more fuel efficient, with lower running costs and road tax thus saving you money as well. There is a lot of debate about whether switching to a lower CO2 emitting vehicle or hybrid will actually help the planet though. Without the majority changing to lower emission cars, the argument is raised that too much damage will still be done, and some believing that the production, charging and recycling batteries for hybrids, will still be producing a large footprint of its own. That being said, the electric hybrid cars, and cars with lower CO2 emissions will naturally reduce the air pollution and thus reducing the harm of global warming.
Getting your staff to ‘Think Green’ Company cars often represent, or are often an attempt to give the pretense of status. People are very sensitive about company cars. Any attempt to impinge in that area could be met with hostility. For many drivers, the sanctity of personal car use should not be obscured by interference from their workplace. Yet the companies that won plaudits in this year’s Fleet Hero Awards from the Energy Saving Trust, which celebrate organisations that are implementing innovative, energy-efficient fleet policies, did so by introducing measures some people would consider intrusive.1 These included cutting mileage rates, limiting choice of company cars, installing speed limiters in vans and fitting computer systems that can relay huge amounts of driver data to company managers. So how do you keep employees on side when introducing these kinds of measures? Bonuses to those who choose a low-emitting car could help, as does the fact that there is still a good choice of vehicles under the CO2 emissions threshold, which is currently 130g/km.
1 guardian.co.uk/fleet-heroes
The Amaryllis Group of Companies is owned by David King MBE and operates within a unique marketplace, being the first Furniture, Fittings and Equipment Facilities Management organisation of its kind in the UK. Capable of fulfilling requirements for many different environments, the group’s expertise is wide ranging and focused upon devising highly creative and innovative, yet cost effective solutions. Headquartered in Chelmsford, Essex, Amaryllis currently employs around 300 personnel throughout the UK operating a warehousing, logistics and field service infrastructure to provide a truly nationwide, on call resource. Amaryllis has established a long-term partnership with Land Securities Trillium, part of Land Securities, who are the leading property-outsourcing specialist, with clients including the Department for Work & Pensions, Job Centre Plus and the BBC. Our contracts within the PFI market incorporate the supply of furniture, maintenance and life cycling services, as well as consultancy.
appropriate to the needs of our business. The transfer from our old fleet to the vehicles supplied from Days was simplicity in itself, with our Account Manager, Darren Jones, making the necessary arrangements for the staggered delivery of our vehicles to our various sites. Darren spent a lot of time assisting us with the final selection of our fleet and was a great help in arranging for the fitting of mobile phone kits and other accessories in every vehicle prior to delivery.
“An absolutely first class company”
In order to meet customers’ diverse requirements, Amaryllis has a wide fleet of commercial vehicles, ranging from 7.5 Tonne lorries to Renault Box vehicles, Master, Traffic and small Kangoo vans. The 79 vehicles on our commercial fleet are all leased from Days Contract Hire in Swansea. The Group Operations Director, Steve Firth, says, “We selected Days from a number of potential fleet suppliers because they offered the best solution and service
tax,
breakdowns,
The service we get from Darren and Days was so good that we decided to lease our car fleet as well. The service we receive from Days didn’t stop once we took delivery of the vehicles. Days Driver support is excellent, there is always someone on hand who can assist with any vehicle problem, be it large or small. The fact that we have dedicated, personal support from Darren and the team at Swansea, means we have the time to run our own business without the worry of dealing with queries about vehicle fuel costs, invoices etc.”
We would recommend Days Contract Hire to any company who is looking at leasing their vehicles, whether that be a commercial fleet or cars, large or small. The friendly, helpful service has been second to none and we firmly believe that we have had real value for money from a company who has delivered magnificent service and real cost saving. An absolutely First Class company.
What Can Days Contract Hire Offer? As well as our core funding products, we are also able to offer all clients the following ancillary services. Please note that the vehicle does not have to be funded by DCH for us to provide an associated service. DCH is continuing its strong commitment to meeting clients needs. Jay Lovell, who joined the company in 2004, is now responsible for ensuring that DCH’s clients are able to take full advantage of the ancillary services we have to offer.
Accident Management Whether the accident is fault or non-fault, our Accident Management service will manage the insurance claim and repair of your vehicle from first notification to completion of repair To keep your driver on the road, a like-for-like hire vehicle is provided for non-fault accidents. Where your driver is at fault, we ensure a hire vehicle is supplied via our Flexi Hire service, or a courtesy car is provided by the garage Free of charge for the core service; only chargeable items are uninsured loss recovery and “notificationonly” claims
Motor Insurance Database DCH will provide vehicle registration details to the MID Remove the administrative burden from your organisation
Telematics Award-winning vehicle tracking system Installation to new and existing fleet, anywhere in the UK Internet-based interface – log in from anywhere and see what your fleet is doing in real-time Keep track of your fleet utilisation and drivers’ hours, receive monthly MI reports, replay routes your driver has driven Can assist you in fulfilling your duty of care, health and safety and working time directive obligations Monitor driver habits and address concerns, such as harsh acceleration and braking – this can lead to a reduced accident rate and lower fuel bills
Fuel Cards Allow your drivers to purchase fuel at 8,000 sites in the UK including all oil company, supermarket and motorway brands Weekly, consolidated HMRC-approved VAT invoicing Daily suspect transactions report Online and scheduled reporting available
Driver Licence Checking Check your drivers’ licence entitlements and current endorsements You set the frequency of the checks – either on a ‘one rule for all’ basis or different frequencies depending on number of current points Flag up drivers who have previously been banned or convicted of drink or drug-related driving offences Reduce the risk of allowing unlicensed or banned drivers using your vehicles Monthly reports showing current points for each driver on your fleet For more information, please contact Jay Lovell on 01792 222182 or email jaylovell@days.co.uk
Travelling Abroad
VE103B It’s that time of year again when some of our clients start to travel abroad with their company vehicle so we thought it prudent to remind you of requirements. Every lease vehicle that travels out of the UK must hold a VE103B Certificate; this document essentially proves that you have permission from the owner (Days Contract Hire) to take your company vehicle abroad and is held in lieu of a vehicle V5 logbook (as the owner we hold this document). If you don’t have a VE103B on you, then your company vehicle can end up being impounded…which is probably not what you had in mind for your holiday abroad. We have previously had to deal with getting vehicles and passengers repatriated due to the driver not having the correct paperwork and the vehicle being impounded. For more information and to obtain a VE103B Certificate you can either visit our website: www.dayscontracthire.co.uk / Driver Area / Taking Your Vehicle Abroad or download our ‘Days Driver App’ for iPhone and Android which also contains many other useful driver functions. In line with French legislation, we also offer for sale breathalyser kits which can be supplied along with the VE103B Certificate. In January 2013 - the French government announced that the implementation of the sanction for drivers not carrying a breathalyser – a fine of €11 – has been postponed indefinitely. So theoretically you are still required to carry a self-test breathalyser when driving in France but there is no current legislation demanding a fine for non-compliance. The VE103B is not needed if your company vehicle is owned by the business. In this case you will need the V5 Logbook comply with company car law. Other items you will need: Insurance to cover you while abroad Driving Licence (for all passengers who might drive) Items to comply with driving laws in the countries you are visiting i.e. breathalyser kits, visibility jackets etc For more information on any of the above please speak to your Account Manager or visit www.dayscontracthire.co.uk Use this space to add quotes or other additional infos. There are two lines of text available, use this place to add some additional quote or informations.
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