Cost Management

23rd March 2016

Road Hauliers: Fuel optimisation ideas.
A further freeze on fuel duty along with the rates of HGV VED and Road user Levies in the March 2016 Budget were welcome news for Road Hauliers. The government followed on by saying that over the last 6 years operators have on average saved a total of £14,400 on fuel. Despite the recent freezes in fuel duty, the cost of diesel still represents as much as 35% of the operating cost of a truck. Operators should therefore continuously seek to reduce fuel costs by focusing on the three main areas, as detailed below:

The Vehicles:
Assess the possibility of downsizing to smaller vehicles. Volvo says that if the operator ticks the I-Shift transmission with software upgrade box it could save up to £1,059 a year.
Consider changing to low rolling resistance tyres which could save £1,766 a year (source: Volvo).
Roof and side deflectors with chassis skirts, when correctly adjusted, could save £1,996 (source: Volvo).
Incorrect tyre pressures could result in an increased fuel cost of £353 per year (source: Volvo).
Correct wheel and axle alignment is worth over £800 a year (source: Volvo)

The Drivers:
Initial training and monitoring through telematics to ensure ongoing improvement. Scania have stated they generally see efficiency gains of between 8% and 12%.
Look at ways to engage and encourage drivers into more efficient ways of driving the vehicle, eg use of the Driver Performance app by the telematics provider Microlise.

The Method and Cost of fuel:
The RHA’s fuel card competitive fixed weekly pricing.
The Fuelcard people claim up to a 4p per litre saving and as much as 10p on the motorway network.
Bunkered fuel could be an attractive option for operators working from a regular base location.



 
Other items in Blogs
 
Adrian Mackenzie
25th March 2019 When doing nothing is best

From time to time, stock markets go through periods of uncertainty. This could be down to some poor economic news or perhaps due to a political crisis.  The sharp falls that can be experienced at such times are understandably unsettling for investors. They can even tempt some to change their long-term plan by selling their…

Read More »

Thomas Carter
21st March 2019 Preparing for Brexit – Do you trade within the EU?

Your UK business may need an Economic Operator Registration and Identification (EORI) number if we leave the EU with no deal.   What is an EORI number?   An EORI number is a unique identifying number assigned to individual importers and exporters to track trade between the EU and non-EU countries. It’s used during Customs…

Read More »

Lisa Mason
18th March 2019 Payroll update: March 2019

  The team at Whiting’s payroll bureau have produced their latest newsletter, to keep clients updated on relevant recent changes to payroll and related legislation.   Edition 10 – March 2019  

Read More »

Fiona Mann
18th March 2019 High scoring Hannah wins award

Many congratulations to Hannah Shales from our Wisbech office who has achieved a world topping score of 95 in the December 2018 Financial Report exams, set by the Association of Chartered Certified Accountants.   Hannah worked extremely hard with her studies and has been rewarded with an ACCA certificate, cash prize and a bottle of…

Read More »

Lisa Smith
11th March 2019 Revised rates for the Annual Tax on Enveloped Dwellings

The charges made under the Annual Tax on Enveloped Dwellings (ATED) regime increase in line with inflation on 1 April 2019:   Property value From 1 April 2018 From 1 April 2019   £ £ More than £500,000 up to £1 million 3,600 3,650 More than £1 million up to £2 million 7,250 7,400 More…

Read More »

Lisa Smith
11th March 2019 UK residents with UK residential property gains – new obligations from 6 April 2020

From 6 April 2020, UK residents disposing of UK residential property will have new capital gains tax (CGT) reporting and payment obligations. The introduction of a 30-day reporting and payment window, i.e. within 30 days of completion of the sale, marks a significant change to the administration of CGT.   The changes do not apply…

Read More »