Fleet managers are swimming in very choppy waters at the moment; the trick is not to drown.

All around them, the waves of uncertainty are swelling larger with little sign of a red and white buoyancy aid to provide the support they are no doubt seeking.

Let’s take diesel. Currently still in the crosshairs of public opinion, the London Mayor is taking direct action with a T-tax for older diesels from October, charging such cars an additional £10 on top of the Congestion Charge to enter the heartland of the capital city. That much we know.

The T charge will affect mainly pre 2006 vehicles so it’s unlikely to be a concern for modern fleet diesels. Nevertheless, the toxic fumes of older diesels have wafted over all diesels as far as public opinion is concerned.

So the government, spurred into action, was due to present its draft air quality plans in late April, widely thought to include anti-diesel measures.

Good! Some direction.

But then dodged the bullet with the announcement of an election; which decision was challenged in the High Court. The government lost and has now said it will publish its plans post local elections (04 May) but before 09 May. So now at least there may be some concrete plans for fleet managers to work on.

That’s the diesel issue, then. But what about fleet managers helping employees plan their next company car over a four year cycle?

Well, despite the lack of ULEV incentive in the company car tax banding system from 2017-2019, at least the certainty arrives for 2020/21 when ULEV take up is encouraged, and pure EVs drop to a 2% tax banding.

Oh hang on…

No, sorry, that’s gone too in the General Election mash up. To rush through the Finance Bill, bits have dropped off – among those are the taxable benefits for ULEVs and, I notice, the first year capital allowances on workplace charging.

So we now only have vision for a three-year period – which is no help to fleet managers trying to advise drivers, and their corporations, on the best way forward over a longer-term cycle.

It’s enough to make you give up on the company car and just do cash for car…except that’s changed too. The new cash for car rules did manage to make the Finance Bill, and an employee will be charged benefit-in-kind on whichever is the greater – the cash amount or the benefit-in-kind for the car. It adds more complexity into the decision, and certainly more administration.

Part of the cash for car deal is that drivers can then charge employers for business mileage. Apart from the potential for fraud this possibly introduces – one leasing company described it as to “incentivise wrong behaviours like over-inflating business mileage and ‘double-dipping’ on travel expenses” – the allowances themselves are being assessed by HMRC.

The current review of expenses tax relief by the Office of Tax Simplification – which closes on 12 June 2017 – seeks to propose a radical shake up of travel and subsistence expenses so that they are only allowable if reimbursed by the employer. In other words, all tax relief on underpaid allowances would cease.

The result could put great strain on employers to pay the full amount of allowable expenses – 45p per mile for employees using their personal car on business for up to 10,000 miles.

It is yet another dilemma facing the fleet manager in the swell of fleet changes.

But I’m not a ‘doom and gloomist’.

Far from it.

While regulations are debated, put back, and delayed there is one clear channel through which fleet mangers can swim: and it’s the ULEV company car.

Company cars remain an essential benefit both in terms of work needs and its value for recruitment and retention. For that to remain the case, though, the company car needs to be an ultra low emission model.

Through all the apparent official chaos and noise, the direction of travel is very clear: it’s towards some form of electrification on your fleet.

Fleet managers can choose to be swept up in the tides of discussion over the chopping and changing of government policy. I would caution against that: focus, instead, on how electrification can be integrated within your fleet over the next three years.

Those that don’t will get left behind in the wash.

Is diesel really a dirty word?

Seems like diesel fuel has been in the firing line since the 2015 Volkswagen emissions scandal brought the pollution effects of this heavy fuel into focus. Since then, the anti-diesel sentiment has gained pace. London Mayor Sadiq Kahn announced a £10 ‘Toxicity Charge’, which will apply from September 2017 for older diesel and petrol models, … Continued

The Fleet Alliance F1 grid

It is the end of March and after a 117 day break, plus the reveal of new cars and drivers – 10 teams and 20 drivers go head-to-head to lift the prestigious Formula 1 World Championship and Constructors titles at the first grand prix of the year – Australia this weekend. Will Lewis Hamilton be … Continued

My 10 Geneva Show stoppers

The beginning of March is an exciting time for the motor industry and its staff, as most jump on a plane and decamp to the home of expensive clocks – Geneva! Why? Well, it’s the first European opportunity in 2017 for the car executives to show their new launches – and their concepts – which … Continued

?How realistic is it to run a ULEV fleet?

I’ve been thinking about this. There’s currently quite a buzz around ULEVs – registrations are on the up and the volume of product is increasing all the time. (ULEVs, by the way, are cars with CO2 emissions below 75g/km – and ULEV stands for ultra low emission vehicle. You’ll be hearing lots about ULEVs in … Continued

Greener vehicles fuel record car sales

Wow! Demand for new cars continues unabated. Although there were some doubters that car sales could continue at 2016 levels, January 2017 proved the resilience of the car industry and new car registrations reached a 12 year high. But what was really interesting for me and everyone here at Fleet Alliance who has championed greener … Continued

Detroit show stoppers

So, the first big motor show of 2017 has taken place. In the cold of Detroit. But the weather won’t stop the thirst for new cars on display at the Detroit Motor Show. Preparations for my own venture into the cold – my arctic trek – meant I didn’t make it to Detroit, but now … Continued

A look into the motoring future at the CES show

The Consumer Electronics Show, or CES as it’s more simply known today, is to – put it mildly – indulge in a Las Vegas tech fest. Held at the start of 2017, if you want to know what’s going to be massive in consumer electronics, then this it: CES. There’s all the latest developments in … Continued

The drive for clean air

Diesel as a fuel has become the staple of car fleets since the government introduced CO2 emission based benefit in kind tax rules in 2002. Little wonder: it’s thermally efficient – producing low levels of CO2 and plenty of miles to the gallon. Manufacturers have responded with ever more efficient engines featuring incredibly smooth operating … Continued

How to beat winter

It’s that time of year again: so expect the usual media scare stories of impending road chaos on the roads, due to predicted blizzards and big freezes. However, the honest truth is that while some of Britain’s more northerly climes and rural areas get a fair share of snow and ice, winters in the UK … Continued