Fuel prices are now at record levels and fleet operators are becoming even more conscious of the vehicles they choose and are adopting a greater corporate environmental focus. Environmental awareness is now top of fleet decision makers’ agenda as the evidence proves that operating low-emission, fuel-efficient vehicles can help reduce fuel bills and allow operation within a budget. Experts are predicting that fuel could reach £1.50 a litre within months the Association of Car Fleet Operators chairman Julie Jenner said “The sharp increase in fuel costs has made fleet operators more aware than ever of the implications of the vehicles they run and how they run them.”
The ACFO have recently championed fleet causes with HM Revenue & Customs, HM Treasury and the Department for Transport and are now calling for HM Revenue & Customs to introduce quarterly reviews. The Director of ACFO, Stewart Whyte is involved in discussions with HM Revenue & Customs and recently said “The increasingly volatility of fuel prices, and the consistent upwards trend, means that it is difficult for drivers, employers and company car drivers to find common ground over fair rates. More frequent reviews will take pressure off corporate HR and expenses departments which often find themselves under very heavy fire from drivers when fuel prices rise and the tax-free reimbursement rates don’t immediately fall into line.”
The ACFO are also keen to point out that these are not the only areas in which fleets can reduce costs, suggesting that companies should ensure that their employees should drive with an eye for good fuel economy. Referring to tax-free Authorised Mileage Allowance Payments (AMAPs), Julie Jenner said: “We have not seen any material changes in this area following several rounds of consultation, but we fully expect further dialogue to take place, as it is our belief that this particular issue still has some ‘mileage’ in it.” The AMAPs system considers any business mileage reimbursement to employees using their own cars for business at or less than 40p per mile (for up to the first 10,000 business miles per year; 25p per mile thereafter) as tax-free. These rates remain unchanged after six years since their introduction.
In conclusion she added “This year will be busier than ever. The demands of businesses are changing and the role of the fleet manager has to change in response, with significant shift towards business travel management. Therefore, it is important that members give us their feedback on areas of concern to them. We want to do everything we can to include members at all levels within the projects we undertake. We are expanding our membership into areas such as HR, finance and procurement because fleet responsibility is now residing within these departments in more and more companies. It remains vital that someone in the business retains control of the fleet activity, even where operational management is outsourced. So many conflicting issues and regulations now apply to running cars and vans. The publicity surrounding the introduction of the Corporate Manslaughter and Corporate Homicide Act shows clearly that top management cannot avoid ultimate responsibility. Ignorance is no excuse, and the penalties for getting it wrong can be significant.”
