As part of the new partnership, ALD will offer a raft of contract hire and personal contract leasing services supporting SME sales through Mazda’s 156-strong dealer network.

Boasting a fleet of more than 60,000 vehicles, ALD Automotive will work with Mazda dealers to help franchises maximise local business opportunities in their region.

Steve Jelliss, Mazda’s Fleet and Remarketing Director, said: “We have a desire to grow Mazda Contract Hire volumes and believe that this collaboration with ALD Automotive will achieve our ambitions.

“The imaginative and creative approach that Mazda is adopting, particularly to the SME fleet sector through our Business Development Programme, which was officially launched 12 months ago with the appointment of the development managers, is matched by ALD Automotive.”

All existing contract agreements prior to ALD’s introduction this month will be run out by former partner Lex Autolease.

Jelliss explained the company’s choice: “ALD Automotive won the Mazda contract in a competitive tender due to their quality of service, flexibility, approachability at a senior management level and an overall hunger for the business.

“Mazda has a growing presence in the UK market – particularly in the contract hire and SME sectors – and the ability of our franchised dealer network to work with their team to offer customers a vehicle leasing opportunity with budgeted monthly motoring costs will, we believe, further increase sales.”

Ten vehicles including Minis featuring Foxtons’ unique branding, have been delivered to date. Foxtons, operates a fleet of over 1,000 vehicles, which are predominantly Minis and BMWs.

Foxtons’ fleet manager Ken Needham said: “I had met with ALD Automotive on a number of occasions over the years and was aware of the company’s service and ability to deliver. When a vacancy came up on our vehicle leasing supplier panel I was delighted to appoint the company.”

Foxtons’ first fleet of customised cars hit the road in 2001, sporting an ‘Italian Job’ themed livery. With a racing-style digit emblazoned on the door and a green and yellow Union Jack adorning the roof. The 2010 livery is an ‘X-ray’ design, which was created in collaboration with one of the UK’s most exciting contemporary artists, Nick Veasey.

Re:allies was established earlier this year and jointly, the members of are responsible for the repair and upkeep of over 800,000 properties primarily across the North of England on behalf of social housing landlords, who are located across the whole of the UK.

The first vehicles delivered under the agreement were to three housing associations in the North West, which are members of the Procure Plus consortium – Stockport Homes, Parkway Green Housing Trust and Moorlands Housing, a member of Harvest Housing Group.

Procure Plus Business Development Manager Gwen Heap, said: “This framework is not only available to our customers and landlords UK-wide, but also to contractors, suppliers and manufacturers. By working together with our partners we can deliver cost savings to everyone involved, another compelling reason to be a part of the procurement community.

Paul Towers, Senior Project Manager for Moorlands Housing, said: “As a member of the initial project group Harvest has been involved with Procure Plus’ new vehicles framework from the outset, giving advice on our specific requirements. The new framework has enabled us to obtain preferential rates on contract hire through economies of scale, and the addition of Procure Plus members and their suppliers has added leverage through volume. This subsequently gives us additional weight in the supply chain to provide increased services levels and price stability in their sector.”

Mark Hudson, from Stockport Homes, said: “Vehicles are essential to our business as we have a mobile repairs workforce that needs to respond quickly and efficiently, often at short notice. The lease contract has not only delivered savings of 20% but just as importantly has also brought significant improvements in the quality of the product. The feedback from the operatives has been very good indeed and we are sure this new fleet will help deliver an even better service to our customers.”

Nigel Wilson, from Parkway Green Housing Trust, said: “Parkway Green is delighted to take receipt of our new fleet providing great value for money and a high quality of product for our colleagues to work from on a daily basis, Procure Plus have again demonstrated their worth in helping get a great deal for the trust.”

ProFleet2 was chosen above other telematics devices as  it has been developed to meet the specific needs of both car and light commercial vehicle operators and has been adopted as standard within ALD Automotive’s contract hire offer.

Designed to help fleets to cut operating costs, improve driver safety and reduce vehicles’ carbon footprint, Paul Barker, editor of fleet industry fortnightly BusinessCar, said: “In a very competitive sector of the business car marketplace, ALD Automotive’s entry stood out for its clear emphasis on using technology to control cost, risk management and environmental issues.”

First launched in 2004 and installed in more than 20,000 vehicles, ProFleet2 has recently been enhanced with a GPS version, which increases the benefits to both fleet managers and drivers making it quicker and easier to operate a cheaper and ‘greener’ fleet of vehicles.

Mr Barker added: “The benefits of ProFleet2 for those people running car fleets are clear to see, and its recent upgrade to incorporate GPS is another welcome move that enhances an already impressive offering.”

ProFleet2 provides companies with a unique insight into the driving behaviour of their employees, alerting them to events which could impact on key issues such as cost, risk management and environment.

Besides fleet cost, fleet risk and fleet environment reporting, fleets can also benchmark themselves and compare their performance against a universe of ProFleet2 data from other fleet operators. To ensure a speedy recovery after a theft, or to improve work scheduling, GPS ‘track and trace’ functionality ensures fleet visibility 24/7 and highlight routes undertaken.

ALD Automotive marketing director David Yates said: “With journey summaries to improve expense reporting; auditable mileage reimbursement; improved service history, enhanced duty of care compliance; reduced risk of in-life or excess mileage charges; lower operational costs; improved CSR reporting; reduced insurance costs; improved tax efficiency; efficient journey scheduling; and reduced risk of unauthorised vehicle use…. efficient fleet management today is all about ProFleet2.”

The ‘Techies’ are designed to name and reward the most impressive technological developments in the business car industry across 11 categories. The winners are judged by BusinessCar’s expert panel to be those that have best used technology to make the operation of a car fleet easier, cheaper or ‘greener’.

The award is the latest to be won by ProFleet2, which has previously won a number of other industry awards.

ALD’s data also revealed that the average CO2 emission of company cars added to the organisation’s fleet is lower than the national and last year average CO2 emissions for all new cars taking to the UK’s road fell to 149.5g/km.

Meanwhile, company cars added to the ALD fleet are also clocking up less mileage, according to the analysis (see below).

The ALD data also highlights that the average contract hire agreement signed in the first six months of this year was for 37.4 months and just over 54,000 miles.

Undoubtedly, says ALD, the continuing trend towards low emission company cars has been significantly influenced by a corporate desire to reduce running costs as well as the Government’s decision to link all motoring taxes, benefit-in-kind tax, Vehicle Excise Duty and capital allowances to vehicle CO₂ levels.

With further tax rises scheduled benefit-in-kind tax thresholds are due to increase on April 6 next year, vehicle capital allowances will reduce from April 1 next year and fuel duty is due to rise on October 1 this year and again three months later – ALD expects average new company car emissions to drop below 140 g/km in the near future.

With fleet decision-makers and drivers able to choose company cars from an ever-widening array of models that are classed as ‘low emission’ and improved travel planning and mileage management by both businesses and company car drivers, this has contributed to the steady decline in journey distances in recent years.

ALD uses a unique total cost of ownership fleet software programme that analyses in fine detail every single factor – both corporate and personal – impacting on vehicle funding and car choice to help businesses make the optimum vehicle selection.

ALD Automotive marketing director David Yates said: “The software enables ALD to identify the base fleet cost for companies and then identify vehicles that meet that criteria. As a result we can deliver substantial funding and operating cost savings to employers and benefit-in-kind tax savings to drivers.

“The economic downturn increased the spotlight on the cost of motoring from both a fleet management and driver perspective. Coupled with the Government using motoring taxes to influence the take-up of low emission company cars, our total cost of ownership approach is significantly influencing vehicle choice.”

Finally, despite more hybrid models becoming available and mainstream manufacturers due to launch zero emission electric models early in 2011, Mr Yates believes that low emission fuel-sipping petrol and diesel company cars will continue to dominate fleet choice lists for the foreseeable future.

He said: “Hybrid and electric vehicles will be a niche choice for most fleets. While there is interest in these vehicles, petrol and diesel vehicles are a known quantity and deliver, in many cases, exactly what fleets and drivers want – low emissions, excellent fuel economy and a desirable total cost of ownership.”

Average new vehicle CO2 emissions and contracted mileage Year CO2 (g/km) Mileage

2010 143.9 17,301(Jan-June)

2009 145.5 18,204

2008 150.5 19,049

2007 155.8 17,198

2006 154.7 19,658

2005 161.4 22,108

2004 167.9 21,592

2003 166.8 22,475

Vehicle flexibility at a competitive rate coupled with changing employment conditions and tightening duty of care legislation are thought to be the main reasons for this upsurge and for the first time, LCVs are being offered with over 100 Volkswagen Caddy, Crafter and Transporter vans joining the fleet in the coming weeks.

Meanwhile, demand for the high-specification nearly-new cars – typically renewed at six months/12,000-miles – remains high as do resale values.

Commenting on the increase in the number of PoolFleet vehicles, PoolFleet operations manager Adrian Temple said: “Corporate demand for vehicles on short-term contracts is high as employment conditions are changing and businesses report signs of recovery from recession.

“Meanwhile, a combination of circumstances including long lead times for new models and a shortage of high quality nearly-new vehicles means that dealers are prepared to pay above guide prices for ex-PoolFleet cars to satisfy consumer demand.”

Mr Temple said: “At a time when the used car market is being talked down, demand for our ex-PoolFleet vehicles remains extremely high with dealers prepared to pay strong money. We have franchised dealers contacting us all the time for stock and, often, they are buying to order.

“In the recession motor manufacturers cut production levels and, in many cases, they have not been restored. As a result, lead times for some models run into several months and consumers are not prepared to wait. Instead, they are happy to buy a nearly-new model in the knowledge that the dealer has obtained the car from a reputable source.”

Cars on the 1,100 strong PoolFleet are predominantly high specification diesel Skoda, Vauxhall, Volvo and VW models and the average rental is for 12-14 weeks. Customers have the ability to terminate the hire at 48 hours notice and do not have to be leasing customers of ALD Automotive to benefit from PoolFleet.

The costs, which are calculated on a daily basis, work out significantly cheaper than daily rental and includes nationwide delivery and vehicle changeover should the PoolFleet rental period extend beyond the vehicle replacement cycle. Unlike daily rental there are no additional charges other than excess mileage and repair charges, which are subject to the British Vehicle Rental and Leasing Association’s fair wear and tear standard.

Mr Temple added: “PoolFleet provides a hugely flexible solution to businesses, which is why we are adding vans to the fleet to meet client demand. Some customers require additional light commercial vehicles for specific short-term contracts or are reluctant to commit to a long-term lease arrangement or buy a vehicle themselves until they are more certain that business levels will remain high as the economy recovers.”

Skoda lease prices
Skoda new and nearly new prices
Vauxhall lease prices
Vauxhall new and nearly new prices
Volvo lease prices
Volvo new and nearly new prices
Volkswagen lease prices
Volkswagen new and nearly new prices

The Award was presented at a ceremony at London’s Royal Automobile Club. The judging panel was chaired by Steve Moody, editor Fleet World.
Mr Moody said: “In my experience, the fleet industry is highly supportive of any initiative which aims to drive up service levels – especially where company car drivers are concerned. By introducing 360 OSI, ALD Automotive has found a way of analysing the quality of individual drivers’ experiences at various touch points in the life of a contract, then using this data to improve service levels for all their customers. ALD’s 360 OSI is a fine example of management information being used to drive up standards, while also providing a benchmark for customer satisfaction.”

360 OSI online survey asks company car and van drivers to rate the service they receive from both ALD Automotive and its various third party suppliers throughout the duration of their vehicle lease agreement. The touch points focused on cover the whole agreement life-cycle from quote to order, vehicle delivery, service or repair, windscreen and tyre repair/replacement and vehicle breakdown through to collection at the end of hire.

ALD Automotive is a member of the Institute of Customer Service and managing director Keith Allen said: “Service levels within ALD Automotive are monitored in a number of ways and we are continually looking into best practice methods to ensure we can continue to gain a true picture of the service we provide to our key fleet contacts and their drivers.

“Developed in conjunction with two of Europe’s leading automotive consultancies apd and ExpertEye, our 360 OSI Survey is, without doubt, the most comprehensive driver satisfaction index currently available in the UK leasing industry.

“It allows ALD Automotive not only to analyse, benchmark and trend ALD’s own internal departments but examine those of our outsourced business partners too, as well as all of our supplying dealers and servicing garages. Breaking down the analysis further we can provide bespoke online reporting for customers and can also provide reporting on any customer-nominated suppliers where they are selected.”

Gary Jefferies, head of business development, Experteye, said: “A large proportion of a leasing company’s proposition is reliant on the performance of third parties and it takes careful and complex management of this supplier network to get the service delivery right.

“Our 360 OSI tool will help ALD further improve its satisfaction levels with its clients and at the same time help them manage their supplier base, making it very clear and transparent to its suppliers how they have performed in terms of these overall customer satisfaction levels. ALD has been committed to the highest levels of customer service for a long time and we are delighted that through this new initiative that has been recognised and with this award.”

Using 360 OSI, drivers are asked to rate any particular service received via ALD Automotive from 0 to 5. All answers marked 0,1 or 2 are given a ‘code amber’ or ‘code red’ with the online responses auto-directed to the relevant ALD manager requiring their immediate response.

Mr Allen said: “This allows us to investigate complaints quickly and swiftly – the key to a satisfactory resolution – and allows senior management an insight into all outstanding and closed events to see where particular issues are occurring within the business. The reporting available, therefore, is invaluable for monthly customer reviews which can focus on ‘fact’ rather than ‘perception’.”

The 360 OSI Survey complements the Fleeteye CSI benchmarking analysis ALD has undertaken since 1998 and is an evolution from the online and telephone driver surveys which ALD has carried out since 2000.

The Fleeteye CSI survey represents over 80% of the vehicle leasing and fleet management market by volume and 94% of the 10 largest companies by volume and is regarded as the definitive customer satisfaction measure of the UK. The survey shows that ALD Automotive when compared to its like competitors was ranked first in 2009 and first over the three-year period, 2007-2009.

Mr Allen said: “This demonstrates not only our current commitment to customer service but an ongoing and consistent high level of service over a longer time scale.

“Today’s market is as demanding as ever and customer expectations are rising all the time. Service excellence on a consistent basis is crucial for our business success in a market as ultra-competitive as the UK contract hire and leasing sector.

“We’ve therefore got to keep raising the bar and will continue to do so with the support of a very committed team and some high quality technical solutions.”

The incident has been described as the worst case of disqualification seen by ALD Automotive since it introduced its DriveSafe service five years ago and the worst ever recorded by the Licence Bureau since it was established in 2003.

The unnamed driver received four, four-year driving bans in the space of 16 weeks from the courts to run concurrently. Two four-year bans for drink-driving were followed by two separate incidents of driving whilst disqualified and a number of other related offences such as supplying false details and driving without insurance. The ban does not expire until November 2013.  The employee had previously received a 12-month driving ban in 2002.

Malcolm Maycock, of the Licence Bureau, said: “The driver had one previous conviction for drink-driving in 2002 but no other offences recorded when we first checked him in 2009. However, subsequent checks across the year, as part of the service provided for ALD’s DriveSafe risk management solution, uncovered a different story.

“This driver is the worst case of disqualification we have seen in seven years of licence checking. We have uncovered many cases of drivers picking up consecutive convictions for speeding offences or similar in a short space of time, but not this number of offences which have led to such a lengthy driving ban.”

Driving licence validity checks are recommended by the Health and Safety Executive and the Department for Transport in their joint ‘Driving at Work: Managing Work-related Road Safety’ document.

ALD Automotive’s marketing director David Yates said: “This appalling case highlights the importance of companies checking the validity of employees’ driving licences. Ensuring all drivers have a valid licence and are legal to drive on business should be a key feature of all corporate occupational road risk policies.”

Following an initial check of drivers’ records ALD Automotive recommends that follow-up checks are undertaken annually on staff with less than four points on their licence, six monthly for those with four to seven points and quarterly on staff with eight points or more.

It is calculated that there are up to one million drivers on the road without a valid driving licence and the Department for Transport and the DVLA estimates these drivers are nine times more likely to be involved in an accident than a qualified licence holder.

Mr Yates said: “The identification of illegal drivers endorses the quality of the Licence Bureau’s services. Ensuring they remain off the road makes a significant contribution to safety as research shows these people are the most likely to be at the wheel of unsafe vehicles and involved in accidents.”

Norwich-headquartered Evander Glazing & Locks, the UK’s largest locksmith, glass repair and replacement business, was the subject of a management buy-out from Homeserve last year and subsequently decided to consolidate the supply and management of its fleet through one supplier.

Evander Glazing & Locks operates a Ford Transit-dominated diesel light commercial fleet of 270 vehicles, which will now be leased on four-year/100,000 mile contracts with mileage pooling. The company’s new vans are being customised by specialist in-vehicle fitment supplier Bri-Stor Systems.

Additionally, the business operates a 58-strong user-chooser company car fleet with vehicles currently both leased and operated via an employee car ownership (ECO) scheme, with an additional nine employees who have taken a cash alternative to a company car. Company cars are run on three or four-year replacement cycles depending on mileage and the previous diesel-only policy will now be extended to give drivers the option of hybrid and petrol models, provided they suit both business requirements and driver lifestyles.

However, under the new arrangement with ALD Automotive, Evander Glazing & Locks has decided not to offer an ECO option as it believes, in its particular circumstances, it is less financially viable and will instead only offer company car drivers the choice of leasing a vehicle or a cash opt-out.

In the future, as a further staff benefit, all employees are likely to be given access to AutoChoice Benefits Direct, ALD Automotive’s affinity scheme, which offers new, nearly new and used cars at discounted rates.

The comprehensive outsourced service being delivered by ALD Automotive will see it supply a wide range of services including fleet management, fleet maintenance, accident management and short-term car hire.

Evander Glazing & Locks fleet manager Richard Tuck said: “We wanted to simplify our fleet supplier structure and move to a sole supply arrangement. In ALD Automotive we have selected a company that can meet all our requirements going forward to exacting standards, while managing out our existing vehicles.”

A further crucial element in the company’s decision to select ALD Automotive was access to the leasing firm’s industry-leading suite of online fleet management applications to aid administration efficiencies.

Mr Tuck said: “Online management reporting is of paramount importance. It is something we have enjoyed before, but with the consolidation of the fleet through ALD Automotive it means I now have a complete one-stop overview of our entire operation.

“Outsourcing the fleet to a specialist company aids operating efficiency and effectiveness, but we are ultimately responsible for the vehicles so I need to undertake internal checks and audits to make sure Evander Glazing & Locks is legally compliant. Using ALD Automotive’s online management systems ensures that I can complete that process.”

ALD Automotive managing director Keith Allen said: “Our comprehensive menu of funding options and wide range of services as well as our threesixty suite of management reports has once again proved highly attractive to a major fleet.

“We are delighted to be working with Evander Glazing & Locks on a sole supply basis and as business partners we are looking forward to further expansion.”

ALD Automotive operates a fleet of around 50,000 vehicles that in 2009 averaged an all-time low of 145.5 g/km in CO2 emissions for new company cars delivered to customers.That compares with an average figure of 150.5 g/km in 2008 and 166.8 g/km in 2003, the year ALD began recording CO2 emissions data. Month-on-month last year the average CO2 emissions for new company cars supplied by ALD was consistently below 148 g/km and the last three months averaged 145 g/km (October), 143 g/km (November) and an all-time low of 136 g/km in December.

The data also reveals that compared with the emission level of new car CO2 figures as produced by the Society of Motor Manufacturers and Traders, company cars added to ALD’s fleet is lower than the national average. Last year average CO2 emissions for all new cars taking to the UK’s road fell to 149.5 g/km (2008: 158 g/km), according to SMMT data. The 5.4% fall in average new car emissions last year was heavily influenced by rising private sector sales, particularly of small low emissions cars, as a result of the scrappage incentive scheme.

Company cars added to the ALD fleet are also using less mileage, according to the analysis; In 2003, the average annual contracted mileage for company cars was 22,475 miles, but in 2009 the average had fallen by more than 4,000 miles a year to 18,204 miles and the average contract hire agreement signed last year was for 38.5 months and just over 58,000 miles.

ALD state the continuing trend towards low emission company cars has been significantly influenced by the Government’s decision to link benefit-in-kind tax, Vehicle Excise Duty and most recently capital allowances to vehicle CO2 levels meaning that fleet decision-makers making company costs a priority are ensuring low CO2 emitting company cars dominate fleets with their better MPG performance.

Meanwhile, improved travel planning and mileage management by both businesses and company car drivers as a result of a focus on carbon footprint reduction has contributed to the steady decline in journey distances in recent years.

ALD Automotive marketing director David Yates said: “We have witnessed a huge shift in the last seven years in the make-up of our fleet in terms of both the type of company cars increasingly chosen by businesses and their drivers, and the amount of mileage clocked up.

“The economic downturn increased the spotlight on the cost of motoring from both a fleet management and driver perspective. Coupled with the Government using motoring taxes to influence the take-up of low emission company cars, there is no doubt that we expect average CO2 figures to fall further in 2010.

It is possible that the downward trend in company car emissions may even accelerate as motor manufacturers increasingly use new technology to cut CO2 emissions to below 130 g/km while also boosting MPG.

Mr Yates said: “Despite publicity around alternative engine technology such as hybrid and electric, we believe that low emission fuel-sipping petrol and diesel company cars will continue to dominate fleet choice lists for the foreseeable future.”

Average new vehicle CO2 emissions and contracted mileage
Year | CO2 (g/km) | Mileage

2009 | 145.5 | 18,204
2008 | 150.5 | 19,049
2007 | 155.8 | 17,198
2006 | 154.7 | 19,658
2005 | 161.4 | 22,108
2004 | 167.9 | 21,592
2003 | 166.8 | 22,475

Around half of ALD’s 50,000-vehicle fleet are now equipped with the company’s multi award-winning ProFleet2 system.

The technology provides companies with key management data to improve operating efficiencies with related financial savings, compliance with duty of care best practice and carbon footprint reduction as a result of improved journey management.

However, one spin-off benefit, greatly appreciated by a number of fleet customers, has been that the technology has enabled police forces nationwide to recover stolen vehicles as a result the system’s ‘location service’.

The latest company to benefit from the technology is Hoylake-based Newhall Publications, which operates a 100-strong company car fleet.

A Vauxhall Insignia 2.0 CDTi 130 worth more than £21,000 was stolen from outside the Suffolk home of its driver just two weeks after it had been delivered.

On being alerted of the theft, ALD Automotive’s Fleet Services team immediately activated the locater functionality delivered through the unit’s SIM card. Within four hours the vehicle was traced to a location just 15 minutes away from where it was stolen by Suffolk Police and recovered largely undamaged.

Alex Murphy, Newhall Publications’ field support manager who administers the company’s fleet, said: “This was the third company car supplied by ALD Automotive which has been stolen and in each case the vehicles have been recovered thanks to ProFleet2.

“While we use the data from ProFleet2 to help our compliance with health and safety legislation, the technology also acts as a peace of mind tool in the event of a vehicle being stolen and it has worked very effectively in recovering three of our company cars.”

He added: “Had the Vauxhall Insignia and the two other vehicles not been recovered the impact of the thefts on our insurance premiums may well have been significant. However, thanks to ProFleet2 the company cars have been recovered and our insurance costs have been kept in check.”

The most valuable company car so far recovered as a result of being equipped with ProFleet2 was a £59,300 BMW 630i Convertible 3.0 Sport auto in April last year.

Additionally, the £1m haul of vehicles stolen and subsequently recovered includes a £31,200 BMW 330d SE saloon, a £44,000 Mercedes CLS320 CDI Coupe 3.0 auto, a £38,200 Audi Cabriolet 3.0 TDi Quattro Tiptronic as well as an £11,700 Ford Transit Connect 220 SWB 1.8TDCi.

Following the reporting of each vehicle theft the ‘location monitoring’ functionality within the ProFleet2 system was activated by ALD Automotive after written permission was obtained from the client company and the vehicle’s driver.

Official Home Office figures indicate that vehicle crime has fallen dramatically in recent years. Vehicle thefts peaked at 522,000 in 1991 but according to 2008/9 crime figures the number has since dropped to 150,000.

Police say that is because an increasing number of vehicles are equipped with tracking devices and other security features, which makes vehicles more than ten times safer than a car with no security equipment.

ALD Automotive marketing director David Yates said: “ProFleet2 has established an enviable record in helping police recover stolen cars. Vehicle theft can obviously impact on fleet insurance premiums so companies that lease vehicles from ALD with the system fitted are clearly guarding against such costs raises, which is even more important in the current recession.

“The technology is therefore both helping to combat vehicle crime as well as keeping vehicle operating costs down and improving efficiency for fleets and their drivers.”

Exclusive to ALD, ProFleet2 was the first practical solution launched more than six years ago into the fleet sector to overcome both cost issues and potential employee resentment often associated with in-vehicle telematics products.

The cutting edge ProFleet2 software has been welcomed by fleet decision-makers for the wealth of management and driver information transmitted and then analysed online, thereby helping companies comply with duty of care legislation and environmental best practice.

As well as ensuring vehicles are serviced on schedule through the triggering of a two month/2,000-mile vehicle service reminder that also eliminates the risk of in-life or end of contract recharges caused by poor service history, ProFleet2 is also proving invaluable in helping drivers’ record accurate business mileage. This ensures they are not overly exposed to risks and companies can keep a thorough audit trail of vehicles and drivers by business mileage being reported separately.

ProFleet2 continues to evolve and last year saw ALD launched ‘Fleet Manager’ with its reporting suite providing fleet managers with comprehensive journey data for their fleet including exception risk reporting, as well as full journey information, time of travel and miles clocked up.

AutoSolutions is a unique total cost of ownership fleet software programme that analyses every factor, corporate and personal, impacting on vehicle funding, car choice and services. Analysed from both the perspective of the employers and the employees it ensures that the optimum benefits package is selected on an individual basis.

Net Mileage Plan uses the maximum HM Revenue and Customs’ tax and National Insurance contribution-free mileage reimbursement rate – 40p a mile – to reduce the gross cash allowance paid to employees without changing the net amount each person receives. As a result of utilising the tax-free Approved Mileage Allowance Payments system in this way, employers can significantly reduce their National Insurance contribution (currently 12.8%) due on the cash allowance.

ALD Automotive recently calculated one of its client’s offering drivers cash in lieu of a company car could save £500,000 a year from its National Insurance bill, whilst a second client was calculated to be able to save approximately £100,000 a year.

Helen Fisk, manager of ALD Automotive’s AutoSolutions team, said: “Instead of, for example, an employer paying a cash allowance in lieu of a company car and 10p per business mile travelled, employers should pay the full tax-free 40p a mile rate and correspondingly decrease the monthly cash allowance. While the cash element continues to be taxed as salary, the mileage element is tax and National Insurance free.”

She added: “In some cases companies are unaware how tax and NIC-free mileage allowances can be used to help them cut costs. Our belief is that many organisations can cut their National Insurance bills significantly by using a dedicated software programme such as Net Mileage Plan to manage and administer mileage and payroll adjustments on a monthly basis.”

Although employees’ financial position remains neutral, they actually benefit because they receive tax relief on business mileage in ‘real time’ and not annually in arrears via a tax return.

As Ms Fisk explained: “Employees who are reimbursed at 10p per mile can claim tax relief at the end of the tax year on the difference with the full 40p per mile allowed under HMRC rules. However, this leaves employees effectively out of pocket for a period of time and with administratively complex forms to complete to gain the tax benefit.

“However, anecdotal evidence suggests that many employees who are reimbursed business mileage below the HMRC approved level either do not know they can reclaim the difference or do not bother to. As a result, employees who do not claim the full tax-free allowance will be financially better off as a result of Net Mileage Plan.”

Critically, to take advantage of Net Mileage Plan and satisfy HMRC rules, businesses must be able to accurately capture employees’ mileage on a monthly basis. Using Net Mileage Plan, ALD Automotive will undertake mileage reconciliation on behalf of customers.

Ms Fisk said: “We will effectively and efficiently manage the reimbursement of the driver. We receive a mileage feed from drivers or employer with payroll data and then make the calculations on a monthly basis to reflect the 40p per mile payment, which ensures the tax-free allowance is fully utilised. The information is then returned to the client to enable the completion of each month’s payroll run.”