I would like to firstly start this Blog with a Happy New Year to all. I do hope that you have had the opportunity to recharge your batteries ready to hit the road running today in England and Wales and tomorrow (Tuesday 5th January) in Scotland. As we now look at how we are going to grow our businesses and keep costs down we are giving the great news that Supermarkets have reduced their fuel costs for diesel to below £1, the lowest for 7 years. This is following the cost of crude oil current trading at less than $40 per barrel.
This year we will not see the 3% Benefit in Kind (BIK) levy on diesel vehicles removed following the Chancellors budget in November 2015. So this will have a negative impact on budgets post April 2016 and will have Drivers continue to pay higher BIK costs for their diesel cars. Companies need to consider the make-up of their vehicle choice lists and look at what alternative vehicles are available to help reduce both the employees but also the employers’ costs when offering a car as part of your overall package.
If companies are looking to help take out costs then there are several other solutions available to them and I list a couple below that may help: -
- Review Free Fuel solutions
- Commercial Fleets - review fuel costs and purchase arrangements, consider solutions to increase MPG and reduce NOx, Co2 and wear and tear
Also, within policy it is worth considering is the fleet fit for purpose with your growth aspirations? It is worth getting this right now so you are not caught out when you need that capacity. Finally, it is important to health check your supply for vehicles and how this is performing against your peer group ensuring you continue to get that competitive edge within your market.
If anyone needs help and support we are here at PVS Ltd to provide you with as much support as is needed. Please do drop us a note or give Marcus a call on 07801 472247 who will be very happy to help you.
Happy new year and a prosperous 2016.