Lex Autolease survey highlights gap in fleet knowledge
The research reveals that 29% of those surveyed who employ a fleet over 500 company vehicles do not know that firms could reduce their NICs by making simple adjustments to their fleet policy to introduce lower-emitting vehicles. Interestingly, this figure falls to 10% of respondents who manage a fleet of 21-40 vehicles.
In contrast, 33% of those surveyed felt that they could realistically reduce their fleet costs by between 6% and 10%. However, without understanding the full impact of emissions on all aspects of business costs and how it can positively benefit the bottom line, Lex Autolease says that this target looks unrealistic.
Class 1A NICs are calculated by multiplying the P11d list price of the vehicle by the HMRC’s benefit in kind tax percentage rates which are derived from the vehicle’s CO2 emission levels. The employer pays National Insurance Contributions on this amount at 12.8%. Vehicles that produce low CO2 emissions deliver less of a tax burden and hence lower employer class 1A NICs. And of course the employee benefits by paying lower BIK rates too.
Commenting on the results of the survey, Nigel Stead, managing director of Lex Autolease, said: 'UK businesses are striving to cut costs, and companies operating fleets of vehicles have a number of opportunities to implement cost-saving measures, provided they have the expertise and knowledge to introduce change. We’re working with our customers to help draw out these opportunities, and implementing cost-saving measures based on CO2 emissions not only delivers substantial annual cost savings to employers but also the employee.'For more of the latest industry news, click here.