Fleets should think carefully before buying new company cars that have had safety devices removed from their specification because of the semiconductor shortage, the Association of Fleet Professionals (AFP) is warning.

The organisation says that there are a number of issues to be considered – from ethics to risk management responsibilities to future residual values.

Paul Hollick, AFP, chair: “We appreciate that the semiconductor shortage is leaving manufacturers with some tough production decisions to make and some have decided to delete what might be described as non-core safety equipment such as lane departure warning and rear parking sensors.

“Our view is that fleets should think carefully before buying these vehicles. From a risk management point of view, there is a moral and potentially also a legal issue in terms of operating some vehicles that are known to be potentially less safe than would normally be the case.

“Similarly, although safety equipment has not historically had a significant effect on vehicle residual values, the trade will know that these are ‘decontented’ cars and are likely to price them according in three or four years at disposal time. The impact on overall operating costs is difficult to assess.”

Paul added that ongoing vehicle shortages caused by the semiconductor shortage were prompting a range of issues for fleets.

“There are predictable problems such as ensuring that cars and vans that are being operated for longer are maintained to a level that ensures they remain fit for purpose. This is relatively simple but can be expensive and does require a lot of attention to detail.

“However, probably the most frustrating issues are the delays that are being caused to fleet electrification programmes. There are relatively large numbers of drivers with an EV on order who are facing the prospect of driving their existing diesel for another 6-12 months.

“Not only is there annoyance at the enthusiasm for EV adoption that exists being hindered but the practical fact that much higher benefit-in-kind taxation bills are being paid for much longer than expected. Additionally, many of these new EVs will now have life cycles that end beyond the current benefit-in-kind taxation tables, which adds a further layer of uncertainty.”

The “key subject” of how to pay for electric vehicle (EV) charging is being tackled at a new webinar being held by the Association of Fleet Professionals (AFP) next week.

“EV Charging – Company Payment and Reimbursements” takes place at 9.00am on Wednesday 15th September and will include sessions from AFP chair Paul Hollick in his guise as managing director of The Miles Consultancy (TMC) and Ashley Tate, co-founder at MINA.

Paul explained: “As EVs start to appear on fleets in relatively large numbers, operators are getting into the nitty-gritty practicalities of their operation and the subject of payments is a practical problem that is emerging as a key subject. This includes both processing company payments for public charger use and how to reimburse drivers for charging undertaken at home from their domestic supply.

“There are a number of issues to be considered and this webinar, based very much on the practical experiences of both Ashley and myself, as well as AFP members, is intended to help fleet operators decide on the best approach for their company.

“As this is very much a live issue that fleet operators are encountering on a day-to-day basis, we are expecting attendance to be high and are advising people to register as soon as possible. Initial numbers indicate a high degree of interest. ”

Anyone who would like to attend can now register through the AFP web site at https://www.theafp.co.uk/webinars.

A new document designed to help fleet managers handle the demands of Clean Air Zones (CAZ) has been launched by the Association of Fleet Professionals (AFP).

A product of the organisation’s Future Roads Committee, “Clean Air Zones and Your Fleet” is designed to take a different angle compared to other CAZ guides for fleets.

Debbie Floyde, chair of the AFP’s Future Roads Committee explained: “There are quite a few similar documents now available across the fleet sector from a variety of credible sources but they are mostly geared to explaining what CAZs are and how they work.

“Our new guide is much more of a practical proposition, designed for fleet operators who are likely to have to operate vehicles in these areas, about how to manage their requirements, covering everything from drivers to paying charges.

“We’re now at a point in time when fleet managers are having to deal with the demands of CAZs on a daily basis and best practise themes are emerging, so the Future Roads Committee has worked to gather ideas from across the AFP for inclusion in the new document.”

Debbie added that the AFP was strongly in favour of the introduction of some form of automated payment facility in CAZ areas that would operate on a national basis.

“As the guide makes clear, the key difficulty of CAZs for fleets is that the means of payment is different in every location. This seems like a very antiquated approach and a national scheme where fleets and individuals could register their vehicles alongside a method of payment seems like a much better solution.”

Copies of Clean Air Zones and Your Fleet will be e-mailed to all AFP members or can be obtained by e-mailing [email protected].

AFP Renews EV Benefit-In-Kind Call, saying Tax Table absence is already affecting Fleet Decisions

The Association of Fleet Professionals (AFP) has renewed its call for the Government to make benefit-in-kind taxation tables for electric vehicles (EVs) available through to the end of the decade.

The industry body points out that currently information has only been published up until 2024-25, leaving businesses and employees now entering into four year cycles with no indication of what the benefit-in-kind rate will be for 2025-26.

Paul Hollick, chair, said that the AFP had been hoping to see further information on future benefit-in-kind from the Government’s recent transportation “greenprint” but had been frustrated by the lack of detail.

He explained: “We’ve been banging the drum about this for some time, that to make the Government’s 2030 electrification deadline workable, we need to have corresponding benefit-in-kind tables in order to strategise effectively. Many fleets, including AFP members, have long-term plans in place predicated on meeting that date but it is clear we need a stable and predictable taxation environment in order to do so.”

Paul said that the AFP were realistic about the future of benefit-in-kind and recognised that the rates applied to EVs would probably have been increased at some point in time but wanted to see this done in a transparent and graduated manner.

“As EVs become the dominant power in company cars, which we expect to happen around the middle of this decade, the government could reasonably move to reduce the incentives attached to them or look to other sources of taxation in order to maintain revenue. That makes sense but it needs to be done in a planned and responsible manner.

“Right now, many drivers are returning to company cars and choosing an EV, or taking one through salary sacrifice, in large part because of the minimal taxation they pay. This benefits them financially but also helps the government decarbonise road transport. It is an incentive-and-result approach that is built on trust.

“What we very much want to avoid is a potential situation where the Treasury of the time suddenly realise that the company car parc is perhaps 60% EV at some point in the mid-late 2020s, and push up benefit-in-kind substantially. That would be unfair on individual drivers, we believe, and also threaten the responsible, committed long-term electrification plans that many, many fleets are pursuing, including our members. The current, four year cycle issue is the leading edge of a potential problem that is only going to get bigger.

“We would like to repeat our request to the Government to look at this issue in the short-term. Introducing benefit-in-kind tables up to 2030 would probably be the single best thing, no-cost action that they could undertake to aid EV take-up by fleets.”

 

A new webinar designed to help fleet managers handle conditions arising in the wake of the coronavirus pandemic is being held by the Association of Fleet Professionals next month.

“Back to Normal? A Post Covid-19 Landscape for Fleet Operators” begins at 9.30am on Wednesday 16^th June and is open to anyone who would like to attend.

The main session will feature Duncan Webb, head of fleet at ISS, looking at a range of issues affecting fleets at the moment and talking about his experiences in dealing with them.

Shaun Atton, head of fleet and facilities at Autowindscreens will also be speaking, and there will be a question and answer session featuring the AFP’s panel of experts.

Chair Paul Hollick will also detail the AFP’s current range of activities and campaigns, explaining how the organisation’s members can access them to gain help and he support.

He explained: “The coronavirus crisis has changed, probably forever, the backdrop against which fleet managers operate and this session identifies those fundamentals and discusses strategies that will deliver results in the future.”

“Back to Normal? A Post Covid-19 Landscape for Fleet Operators” is expected to last around 60 minutes including a question and answer session. Further details and registration are available at https://www.theafp.co.uk/webinars/back-to-normal-a-post-covid-19-landscape-for-fleet-operators/.

Please download the best practive guide for Mobility as a Service for here

A new webinar entitled “Introducing Electric Vehicles – Upgrading Your Policy and Implementing Your EV Roadmap” has been announced by the Association of Fleet Professionals (AFP).

Taking place at 9.30am on 16th December and open to AFP members, it is designed to help fleet professionals navigate through the introduction of EVs into their business travel plans.

The event will be hosted by AFP director Julie Summerell and include presentations from Simon King, director of fleet at Mitie and Lorna McAtear, fleet manager at National Grid.

The webinar is also being used to launch the new AFP Best Practice Fleet Policy Guide for EVs, which is available to all of the organisation’s members through its web site.

AFP chair Paul Hollick, said: “While the coronavirus crisis might have affected the availability of new EVs and slowed fleet adoption as a result, there is no question that fleet enthusiasm appears to be unaffected.

“The webinar will look at the practicalities of introducing EVs to your business, from vehicle choice to range management and from charging availability to drawing up choice lists.

“Simon and Lorna have a huge amount of experience in this area and are certainly among the most advanced fleets in the country when it comes to EVs, so we are very much looking forward to hearing about their experiences.”

This is the third AFP webinar to be held since the formation of the organisation in March from the merging of the Association of Car Fleet Operators (ACFO) and the Institute of Car Fleet Management (ICFM). A full calendar of 2021 events will be announced very soon.

Register HERE for the EV Policy Roadmap Webinar – an important and informative AFP Members’ event.

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The 2021 calendar of events for the Association of Fleet Professionals has been announced as the organisation begins a new recruitment drive.

The programme covers webinars for AFP members only alongside Partner Programme webinars open to a general audience as well as a schedule of training modules.

AFP chair Paul Hollick said: “2021 will be our first full year as the fleet industry’s professional and trade association and we’ve put a lot of thought into the subjects that we’ll be covering in 2021. It’s going to be a very challenging year for fleets who will be dealing with the ongoing pandemic, Brexit and electric vehicle deployment, just for starters.

“We’ll be putting considerable effort into supporting individual fleet managers. Since the AFP was formed in March, most of our recruitment activity has been aimed at attracting corporate members and we’re very pleased with how successful that has been.

“Now, however, we’re looking more at fleet managers who are working out in the field and are promoting the benefits of what the AFP can do for them. This is an important area for the organisation and we are keen to attract as many members as possible.

“We’re also very pleased to announce our first full training programme. Helping people working in the fleet industry to gain new skills is a crucial part of our mission and we are already seeing people sign up for some of these modules.”

The AFP member-only webinars are: 16th December 2020, EV Policy Roadmap; 17th February, Grey Fleet Best Practice; 14th April, Tax and The Company Vehicle; 16th June, Back to Normal? Post Covid Fleet Management; 14th July, Getting Started on Mobility; 13th October, EV Charging Payments and Reimbursements; and 15th December, Alternative Forms of Transport Usage.

AFP Partner Programme Webinars, sponsored by AFP corporate members and open to all fleet managers are: January, Insights Not Data; March, Operational Road Risk Best Practice; May, Road Tolling – The Future of BIK?; and July, Practical Mobility Solutions. Exact dates are to be confirmed.

Finally, the planned AFP Fleet Academy Training Modules are: 5th January, Diploma – Advanced Finance; 23rd March, Fast Track – People Management; 20th April, Fast Track Administration and Finance; 11th May, Diploma Advanced Interpersonal Skills; 8th June, Diploma Administration and Control; 22nd June, Fast Track Acquisition and Law; 7th September, Fast Track People Management; 12th October, Fast Track Administration and Finance; 1st December, Diploma Acquisition and Disposal; and 14th December, Fast Track Acquisition and Law.

The rise of home working in the wake of the coronavirus crisis is creating issues for fleets when it comes to classifying journeys, says the Association of Fleet Professionals (AFP).

Describing the problem as “The New Commute,” the organisation says that problems revolve around whether an employee’s home is now officially their place of work.

Paul Hollick, AFP chair, explained: “If someone is working from home rather than the office, then it raises the question of which is actually their place of work. This is important when it comes to both expenses and risk management.

“For example, if someone now drives their own car to the office once a week, are they allowed to reclaim their travel costs using AMAP rates, as they would for any other business journey that they undertake?

“The other major issue is whether, if someone now uses their own car to travel from home to work, whether that is now seen as a business journey from a risk management point of view, rather a commute.”

Paul said that the HMRC rules in this area were often inconsistently applied. Normally, they were based on the employee’s contract of employment showing that they were home-based but there was also a reasonableness test, to ensure that the employee is working from home rather than the office for a proportionally greater length to time.

“As always with points of taxation, it is better to have hard and fast rules but these are open to local interpretation and fleets can potentially suffer from a lack of uniformity.”

He added that the issue of risk management was probably clearer but also open to some degree of interpretation.

“Any employees who work from home for the majority of time but sometimes visit the office using their own vehicles have, strictly speaking, all become grey fleet – and should be subject to all the usual grey fleet management practices.

“Again, we have yet to hear from any fleets who have been in touch with the Health and Safety Executive about this but it is an area that would benefit from future clarification.”

The pandemic was creating a series of questions for fleets that AFP members were currently discussing and to which they were attempting to find solutions, Paul said.

“’The New Commute’ is just one of a series of issues that we are working hard to resolve for members but sharing best practice ideas. It is at times such as now, when so much surrounding fleet management is fluid, that the AFP can really add value.”

The AFP was formed in March from the merging of the Association of Car Fleet Operators (ACFO) and the Institute of Car Fleet Management (ICFM).

Fleet training organisation, the recently launched, Association of Fleet Professionals (AFP) – embracing the long-established ICFM – is anticipating a membership boom with demand for its online distance learning courses increasing as the coronavirus pandemic bites.

AFP, which undertakes fleet industry training under the new Fleet Academy banner, following the merging of ICFM and trade organisation ACFO’s operations, offers both its Introductory Certificate in Car Fleet Management and Intermediate Certificate levels in Car and LCV Fleet Management programmes as online distance learning courses.

Only its Diploma (Advanced Level) Programme is exclusively tutor-based and the Fleet Academy has, in the light of UK Government advice and guidance, taken the decision to postpone further classroom-based training for that course as well as that for the Certificate course until September. However, any resumption will be kept under review as Government guidance dictates. The Introductory Certificate course is only available online.

Fleet Academy sales and marketing director Peter Eldridge said: “The coronavirus (Covid-19) pandemic is having a seemingly unprecedented in at least a generation impact on the world generally and the fleet industry as a whole.

“The Fleet Academy is committed to providing online courses that take into account the limitations on travel and social gathering that we are all facing, and will continue to do so over the coming months.”

Training courses are applicable to fleet decision-makers – fleet operators, but also including those with fleet responsibility working in HR, finance and procurement roles and the fast-emerging mobility function – as well as to employees of companies supplying a wide range of services to fleets including contract hire and leasing and fleet management companies and dealer-based corporate fleet personnel.

The Introductory Programme leading to the Introductory Certificate in Car Fleet Management is designed specifically for new entrants to the fleet industry. In addition to providing a background on how vehicle fleet management has evolved, the course enables new entrants to begin to understand what’s involved in developing a fleet policy relevant to the needs of a business, the importance of asset management and provides a pointer to the changing face of fleet-related roles in the future. The course involves approximately 12 hours of study and costs £99.

The Intermediate Certificate Programme, which leads to the Certificate in Car & LCV Fleet Management qualification, which is the benchmark standard for those involved in the management of a vehicle fleet, covers five modules on: Principles of people management, effective vehicle fleet administration, finance, acquisition and remarketing and legal compliance. There are also assignments and knowledge reviews following the completion of each module.

The study time is anticipated to be between 30 and 40 hours in total, but one of the major benefits of the Programme is the ability to work through the course on a flexible time arrangement that fully supports business needs and periodic pressures. Students can ‘park and return’ to the Programme to suit their individual requirements – as they can the Introductory Programme. The cost of the programme is £1,500 with the option of external endorsement from the Institute of Learning Management at an additional cost of £74.

Each of the five modules comprising the Intermediate Certificate Programme are also available for purchase individually at a cost of £350 per module.

Online tutor support is available for all students undertaking both Programmes.

Mr Eldridge said: “The fleet industry and employee learning cannot grind to a halt amid all the sector-based challenges faced around, for example, changing legislation, tax regulations, new technologies and Clean Air Zones.

“The Fleet Academy is fully geared up to further enhance the skills and abilities of all employees with fleet responsibility and those working in the supply side of the industry as we all seek to overcome the new work and personal challenges imposed on us all by the coronavirus pandemic.”

Mr Eldridge added: “Online courses are generally popular because the way the new generation of fleet decision-makers are working and studying is changing. We believe that as home-working is being introduced by many employers it simultaneously offers employees a greater opportunity to expand their knowledge-base and qualifications.”

He concluded: “Regarding tutorial-led training, the safety and wellbeing of all our members and prospective members is of paramount importance. That is why all planned training courses involving delegates meeting and travelling will cease at least until September 2020 unless Government advice allows for an earlier resumption of activity. Further updates will be provided on a regular basis.”

Fleet Academy qualifications are viewed as the de facto stamp of approval for employees with fleet responsibility whether as full-time professional fleet managers or as part of an HR, finance or procurement role. They are also increasingly being viewed as job-critical for employees working in the fleet service support arena, including at contract hire and leasing companies, fleet management organisations and in dealer-based corporate fleet departments.

Further information is available on the AFP website – www.theafp.co.uk – or by emailing the AFP administration hub at [email protected].