In April 2011 the NIC rate increased from 12.8% to 13.8%, meaning that significant cost savings are available to businesses who address the impact of CO2 emissions on their company NI payments. Yet the ALD Automotive/YouGov survey found that UK FDs remain in the dark about how they could generate substantial savings by offering a choice of greener vehicles and highlighting the financial savings to the employee of leasing a greener vehicle.

By choosing a lower-emitting vehicle, the Class 1A NIC payable by an employer is significantly reduced. Switching from a petrol version to a diesel version on some models can create a saving of £335. Multiply this figure by a fleet of 500 vehicles and the potential cost saving is £167,500 per annum. In addition, cash savings can also be enjoyed by the employee who will pay less Benefit-in-Kind tax on his or her company car.

The ALD Automotive/YouGov survey also found that only 15% of those surveyed felt that they had any detailed understanding of the costs of running a fleet. ALD says that with the recent increase in emissions-based taxation, it has seen a marked increase in the numbers of UK businesses of all sizes requesting advice and help in implementing and changing fleet policy to deliver cost savings and a greener fleet.