Regal Rentals challenges Government to rethink Vehicle Excise Duty

We are calling on the Government to reconsider the planned changes to the Vehicle Excise Duty (VED).

I have been in touch with Chester MP Christian Matheson to ask him to write to the Chancellor of the Exchequer Philip Hammond about this matter.

From Saturday, April 1, vehicle tax in England is changing. Revised vehicle tax rates on new registrations will be introduced, based on the carbon dioxide (CO2) emissions of each vehicle.

A flat standard rate of £140 will apply in all subsequent years, except for zero emission cars which will pay nothing. Cars with a list price in excess of £40,000 will incur a supplement of £310 on their Standard Rate for the first 5 years in which it is paid.

In addition, if ownership of a car is transferred within the first year, a refund will only be paid on the standard rate rather than the first year rate. For UK car rental companies, who typically keep our vehicles for an average of six months, this will result in a deficit in the tax we can claim back.

The duty hike will hit the car rental industry particularly hard with an estimated 400% tax rise with the lack of refund responsible for £14m of this. As well as damaging our ability to buy the newest, cleanest vehicles, these tax increases are likely to result in higher rentals prices for our customers and put further pressure on UK inflation.

A recent analysis of BVRLA member data also indicated that the industry will buy 24,800 fewer cars this year as a result of the VED change, which will have a major knock-on effect on the environment.

Gerry Keaney, chief executive of BVRLA has said: “Rental companies account for a substantial proportion of new, low-emission car purchases in the UK, and if these changes go through, the Government will seriously damage its green agenda and air quality goals.”

As a company which provides rental vehicle to the public, we are deeply concerned at the potential impact these changes will have upon our business. We operate 1,250 vehicles in our fleet, purchase an average of 2,000 vehicles every year and support 115 jobs.

We want the Government to reconsider these changes and ensure that all individuals or businesses selling a vehicle in the first year are able to recover the full remaining tax amount paid.

For more information on the official changes

What you need to know about Grey Fleet

Grey Fleet drivers are employees who drive their own car and use it for business.

Taking into account the administration and cost, paying a fixed mileage allowance for the use of a private car can be seen as far simpler than providing a pool car or arranging for a daily rental vehicle.

Although it can be beneficial for companies, there are a number of issues relating to grey fleet which need to be considered.

Did you know that if a grey fleet driver is using his car for business then you could be liable if he had an accident?

Companies also have a duty of care to ensure that an employee’s car is fit for purpose, has a valid MOT, is insured for business use and that the driver has a valid driving licence.

It is crucial to have systems in place so these checks are made.

Employers can reimburse staff who use their own car for business travel up to 40p per mile without any tax implications for the employee or Class 1A National Insurance implications for the employer.

However, once the employee is claiming for a journey over 80 miles in a day it would be far cheaper for the employer to provide them with a daily rental car instead.

Another thing to be aware of in regards to grey fleet is that, on average, fleet vehicles will be older and create higher emissions than company cars or daily rental vehicles.

Combined with mileage rates, which can create the incentive for additional travel, it means that businesses should look very closely at the impact grey fleet travel has on total emissions.

At Regal Rentals, our fleet management solutions help to ensure that your business makes the best use of its vehicles.

Renting a car from us means you can provide the newest, cleanest and safest vehicles for your employees on a flexible basis. We can deliver cars to the office or home and you can rent them for as little as one hour to one month.

And we also provide employers with detailed management reporting information to help monitor usage, vehicle emissions, costs and the health and safety of employees.

What every employer needs to know about Duty of Care risk prevention

Did you know that your cars, vans and trucks are classed as places of work?

In recent years, the British Government has got tougher on enforcing health and safety legislation.

Today, the law says that a vehicle is a place of work and that employers and managers have a ‘duty of care’ under the Health & Safety at Work Act to ensure the safety of everyone working on their behalf – including drivers.

For businesses that use vehicles at work, the new law means that it is the employer’s responsibility to ensure a vehicle is roadworthy. This applies to company cars, grey fleet or even an employee’s own vehicle.

Below is a list of what employers need to ensure:

  • The vehicle is in a roadworthy condition
  • There is a current MOT certificate for all vehicles over three years old
  • The driver is licensed to drive
  • The vehicle is fully insured for business use
  • The car is regularly serviced
  • The employee is carrying out regular basic maintenance checks
  • The employee is a member of a roadside recovery organisation

Whether your business needs a short or long-term car hire, using the Regal Rentals service means that your car is our duty and we make the safety of it our responsibility. Our vehicles are always less than 18 months old and we ensure they are fully maintained and serviced.

With Regal, you are guaranteed a vehicle with the latest safety and security features.