The challenges for business fleets in 2008

The issues facing small business fleets are much the same as those faced by large business fleets, says ACFO’s Julie Jenner. There are three broad areas of business car management that businesses will need to address this year:

• tax;
• the environment; and
• road safety and duty of care.

Tax and the environment are two issues closely bound together.

The government has led the world in putting CO2 factors into almost every aspect of company car taxation.

It’s the basis for benefit-in-kind tax on company car drivers; for graduated VED; and we know that HM Revenue & Customs is still looking closely at how to introduce CO2 into corporation tax relief. The big news, though, is the welcome new 10% tax band in April. Company cars with CO2 emissions of 120g/km or less will qualify for this new 10% band.

Fuel-efficient cars mean low-tax cars. So with fuel costs rising, and greater pressure on budgets, small business fleets need to ensure they have some form of fuel monitoring and control.

There is no justification for complaining about high fuel costs if you have no idea how much is being wasted. Part of that control should be the introduction of low-emission and more fuel-efficient cars.

Managing on-road risk

Conforming to work-related road safety regulations has been prominent on most big fleets agendas for a few years. Small businesses now need to catch up.