More than half of companies are taking steps to reduce fleet emissions


More than half of the UK's employers are adopting more eco-friendly vehicles, new research has found.

The Employee Benefits/Alphabet Fleet research 2015 reported that 54% of companies are taking steps to 'greenify' their fleets.

Fleet Evolution says the transition is largely stimulated by the ’20-20-20’ targets that call on the UK to overhaul its approach to energy efficiency.

Set by EU leaders in March 2007, the climate and energy package encompasses three key targets - a 20% reduction in EU greenhouse gas emissions from 1990 levels, raising the share of EU energy consumption produced from renewable resources to 20% and instilling a 20% improvement in the EU's energy efficiency.

With transport accounting for 21% of the UK’s total greenhouse gas emissions in 2013, cars are a key area to target.

Many employees choose a company car with low co2 emissions to reduce the amount of company car tax that they pay. Not only is it better for the environment, but also their pocket!

Employees who choose a BMW 320d over a BMW 335i will save over £2500 on the tax that they have to pay. This is because the car has lower CO2 emissions in it’s diesel format, thus has half the Benefit in Kind cost.

Lower co2 emissions also result in lower fuel benefit taxes for those who receive a fully expensed car. However ABAX would advise everybody to consider paying for their own private fuel and avoiding the fuel benefit tax altogether. The typical company car driver could save themselves and their employer up to £2500 annually by opting out of the fuel benefit.

If our BMW 320d company car driver drives 10,000 private miles per year, they can pay either £1680 for the fuel benefit tax or repay their private travel at the cost of £1200. £480 is a significant saving over the course of a year.

Where the company is concerned, when the private fuel is paid for by the employee, the fuel benefit charge is removed, thus the national insurance on the benefit no longer applies, saving £610. The cost of fuel for the 10,000 private miles is no longer funded by the company. A total saving to the company of £1,810.

Therefore between the employee and the employer £2290 is saved. This saving is all recovered from HMRC with nobody else out of pocket. Sherwood Forrest’s very own Robin Hood would be proud!

To save yourself some money, give ABAX a call today.

Lauren George
Fleet Emissions