Fleet Industry 2018

14.03.18

Changes affecting the Fleet Industry in 2018

There are a few changes affecting the fleet industry, so we thought we’d pull together a few of the factors that could impact your business fleet in 2018.

Diesels

It’s fair to say diesels have received a lot of bad press of late and the Chancellor has announced a tax hike for new diesels is on its way.  From 1st April 2018 new diesels face a higher 1st year VED (Vehicle Excise Duty) if they don’t meet RDE2 emissions standard.  It is also important to note that cars with a list price over £40,000 will pay an additional £310 per year on top of the standard rate for 5 years.

VED Bands and Rate for carsFind out more about the price changes from HMRC

RDE Emissions Testing

RDE stands for Real Driver Emissions and is designed to measure the pollutants, such as NOx, emitted by cars while driven on the road.  The aim is to ensure that cars deliver low pollutant emissions in practice and not just in the laboratory.

It was introduced in September 2017 as part of the World Harmonised Light Vehicles Test (WLTP) procedure and becomes mandatory for all cars from September 2018.

The Chancellor announced in his Autumn Statement that the WLTP figures will replace the current New European Driving Cycle (NEDC) from 2020 and will be used to calculate Car Tax (VED) and Company Car Tax Rates.

From a fleet perspective and assuming these figures reflect real life more accurately they will provide a more accurate running cost for vehicles and improve fuel management.

Company Car tax

In addition to VED tax increase Company Car Tax will also go up on diesel cars from 3% to 4%.  This will apply to all diesels registered after 1st Jan 1998 which exceeds RDE2 standards or doesn’t have a registered NOx emission value.

Fuel Duty

Fuel Duty has been frozen since March 2011 at 57.95p per litre. A rise was expected in 2017 but the Chancellor froze it for another year meaning it will remain at this rate until at least April 2019.

Clean Air Zones

The government’s air quality plan consultation included a list of potential local authorities that eventually become Clean Air Zones.  London’s Ultra Low Emission Zone expected in 2019, Nottingham, Leeds, Derby, Southampton and Birmingham must all introduce clean air zones by 2019 and the remaining 23 authorities will have to set out their plans by the end of the year.

The government states that ‘toxin taxes’ should only be used as a last resort, but these zones will mean that some more polluting vehicles could well be restricted from 2019.

In February 2018 the high court ruled that the government’s current policy on air pollution was ‘unlawful’ and ordered changes.  Mr Justice Garnham noted a ‘real risk’ from air pollution and that the government’s plans were ‘seriously flawed’ and the approach to tackling pollution in 45 local authority areas was ‘not sufficient’.  Environmental activists continue to put pressure on the government to take further action in this area with activist lawyers winning 3 legal judgments against the government on the issue.

If you’d like to find out more then get in touch with us we can help you navigate the regulations and changes to stay one step ahead!

 

 

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