April will see the introduction of a number of significant changes that affect the way fleets operate, which makes it an ideal time to give your fleet strategy a wax and polish.
There are lots of issues that need to be considered to ensure your fleet is running as efficiently and safely as possible, so a few days spent simply considering the following issues and how they affect you could pay dividends throughout the next year.
Taxation
This isn’t the most exciting way to start a review of your fleet, but it may be the most effective. One of the most important issues is the new 10% benefit-in-kind tax band for company cars producing 120g/km of CO2 or less from the new tax year. This year’s Budget also revealed a reform of car vehicle excise duty rates and bandings, introducing new bands from 2009, which allow drivers of the cleanest cars to pay no tax in the first year.
There will be higher first year rates in 2010-11 to influence purchasing choices. Capital allowances will also be reformed to base them on emissions. Choose the greenest cars for your staff and you have a recipe to slash driver’s tax bills and the company’s Class 1A NICs at the same time.
Taxation information: hmrc.gov.uk/cars
Vehicles
Now is an ideal time to review your fleet list. Do employees have access to the low emission cars that will slash their tax bills referred to above? Approach manufacturers and ask them to list the models that might help. With safety in mind, review the latest safety ratings from the European New Car Assessment Programme to ensure you aren’t providing drivers with vehicles that won’t perform well in an accident. Try to get behind the wheel at events such as Company Car in Action so you can give your drivers a considered opinion.
Company Car in Action: companycarinaction.co.uk
Safety
The new tax year coincides with the launch of the new Corporate Manslaughter
Act. Review your fleet safety policy and accident rate and benchmark these
against other companies using services such as the one provided by interactive
driving systems.
Ask suppliers to provide information about their risk management services and
whether they will provide a free fleet review. Make it a priority to review how
your fleet meets the standards set down in the Department for Transport/Health
and Safety Executive Driving At Work Guide.
Managing work-related road safety: www.hse.gov.uk/pubns/indg382.pdf
Drivers
Drivers are your biggest liability so ensure you have accurate records and information that can help you manage them effectively. Ensure driving licence checks are up to date and consider how you will assess the risks facing your drivers on the road over the next year. Use your review to draw up a communication plan for the next 12 months targeting the areas where drivers face the highest risks, according to your own figures on accidents.
Consider introducing a fleet ‘driving licence’ which is only issued if key checks on drivers have been carried out. Make it a priority to find out how many drivers are covering business mileage in private vehicles and ensure you have documentation for each employee and for their vehicles, including driving licence, insurance, MoT information and a record of servicing.
Royal Society for the Prevention of Accidents: rospa.co.uk/roadsafety/index.htm
Funding
What is your fleet costing and how much are you really paying for it? Ask potential suppliers to submit data showing what they would charge to provide your fleet and make use of free running cost benchmarking services. Ensure that in working out the actual cost of your vehicles, you include tax costs in your equation for both the employee and the company, as these are a significant expense but are often ignored in cost comparisons.
Free running costs database: fleetnews.co.uk/FleetData/RunningCosts
Tyres
Often overlooked by drivers and employers, the tyres you choose and how you
look after them make a difference to everything from ride comfort and noise to
braking distances, cornering and even fuel economy. 20% of a car’s fuel
consumption is caused by tyres. Under-inflation increases braking distances and
increases fuel consumption.
Consider introducing office car park tyre checks for all vehicles through major
providers such as Kwik-Fit Fleet or ATS Euromaster. Also, ensure you encourage
regular tyre checks by drivers by explaining the safety and fuel economy
benefits of taking good care of their rubber.
Advice on tyre safety: tyresafe.org
Maintenance
Every year, thousands of business drivers break down because of their ignorance of basic vehicle checks. Consider introducing a reminder on claim forms for business mileage, which tells drivers what they should be checking and at what intervals. Provide drivers with glovebox guides that they can refer to and make advice available over the office intranet. Ensure your procedures clearly show when a vehicle is next due a service and list the work carried out.
Vehicle maintenance advice: theaapodcasts.com
Congestion
How much time are your drivers losing in congestion every day? Consider sending out a survey to every driver and assess what congestion is costing them in time, and your business in lost productivity. Provide drivers with the tools and information to check traffic routes before they set off and encourage them to think about how they make their journey. If you have drivers entering the congestion charging zone, make sure you are registered for a fleet account to avoid unexpected penalty notices for non-payment of fines.
Live traffic information: highways.gov.uk
In-car technology
Modern technology can improve safety, but some of it can also be a liability, so it pays to be clear on what is fitted to vehicles. For example, anti-skid control or electronic stability control are essential devices that can prevent a vehicle from flying out of control during emergency manoeuvres. There is a European campaign calling for ESC’s to be standard in to all cars. By contrast, many companies are now reviewing their approach to hands-free phone kits in cars as there is clear evidence that drivers find talking on a hands-free phone just as distracting as talking on a hand-held one.
View the campaign at chooseesc.eu
Fuel
With fuel prices continuing to rise, a 2p a litre rise due in October and steady inflation duty rises promised from 2010, it will pay to plan ahead to ensure your budgets can cope with the changes ahead. You also need to review how to use less fuel and also how you are paying staff to cover their costs. Many companies use pence per mile fuel rates to reimburse their staff, but it could pay to introduce fuel cards to enable effective management of actual business fuel costs. It could also be beneficial to invest in fuel economy training for staff. To help limit the impact of fuel use on the environment, investigate carbon offsetting.
Free advice on carbon cutting: carbontrust.co.uk
Free green fleet advice: energysavingtrust.org.uk/fleet/



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