The electrical distributor has a commitment to delivering all orders quickly and accurately across the UK, operating out of nine warehouse units.
With a UK head office in Peterborough, Switch Electrical Wholesale Limited runs a fleet of 12 delivery vans which typically distribute cable, wiring accessories, lamps, lighting, heating and ventilation. It also operates a fleet of six company cars.
The smooth operation of the fleet is paramount to the company’s customer service and success, and the partnership with ABAX has allowed for cost saving efficiencies and tight compliance with tax regulations for both company car and commercial vehicles.
Piers Barron, ABAX UK Sales Director said: "Operating a fleet of delivery vans alongside a fleet of company cars provides many challenges for traditional telematics companies due to the different tax regulations that affect company cars and commercial vehicles.
“HM Revenue and Customs (HMRC) is clamping down on incorrect vehicle usage. Private usage of commercial vehicles requires a declaration on the employee’s P11D form in order to raise the correct benefit charge. Many of our clients stipulate to their workforce that commercial vehicles are to be used for business purposes only.
"We commonly find drivers are unaware that they could save significant money by electing to cover the cost of their own private fuel. Between the business and the driver, a typical saving is in the region of £2,500 per year.“
This lack of understanding is reinforced a YouGov survey commissioned by ABAX. It revealed that 70% of business owners don’t fully understand the tax implications that surround mileage claims.
It also revealed that two thirds of drivers either do not receive or choose to opt-out of a fuel benefit, where their private motoring expenses are paid for by their employer. Of these drivers, 56% admit to being unaware of HMRC’s regime for reclaiming business mileage.
Switch Electrical Wholesale Limited’s drivers now use ABAX’s Triplog system to ensure they do not operate outside the usage framework imposed by HMRC, potentially facing a £3,000 fine per vehicle and the requirement for both company and driver to pay unpaid taxes.
Piers added: “It’s easy to extract and compile a mileage claim when using information recorded digital mileage capture device. The Triplog also respects the car driver’s privacy and allows them to administrate all of the data and only pass on the details of business journeys for their employer to sign off.“
Gavin Jones, Director at Switch Electrical Wholesale Limited, said: "Operating within a highly competitive market, all sectors of our business must run as smoothly and efficiently as possible to gain a competitive advantage without compromising levels of quality or service.
"By collaborating with ABAX we have saved a lot of time in the administration of mileage claims and the flexibility to move units between vehicles when required. Being able to analyse delivery routes allows us to reduce our delivery times, fleet mileage and thus fuel costs.
"The technology has been embraced by our drivers. The manner in which the ABAX staff have briefed not only our office staff but also our drivers on the system’s operation and tax regulation has helped immensely."