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
 
Vanessa Pearson
18th June 2018 Public Sector contractor wins IR35 case

HMRC have lost a second IR35 case this year, and their second case against the same contractor, putting into doubt their own understanding of the IR35 rules. Ian Wells, director of personal service company Jensal Software Limited provided his services to the Department of Work and Pensions via a recruitment agency during 2012 and 2013.…

Read More »

Jeannette Hume
18th June 2018 EIS Money: Beware how you spend it!

Tech companies that are financed through EIS equity cash will be aware that this ‘tax wrapper’ can be super-generous, but that many criteria have to be met to ensure eligibility. One of these long standing criteria has been that the company must use the proceeds (up to £5m pa) raised: In either a qualifying trade…

Read More »

Thomas Carter
15th June 2018 Making Tax Digital, VAT and newly registered businesses

All VAT registered businesses with a turnover over the current VAT registration threshold of £85,000 will be required to comply with the Making Tax Digital (MTD) record keeping and reporting requirements for VAT periods which start on and after 1st April 2019. Where a business is VAT registered but has turnover under £85,000 at April…

Read More »

Jodie Tarbin
11th June 2018 Changes ahead for CGT payment

HM Revenue & Customs is proposing, in less than two years’ time, to rewrite the rules around Capital Gains Tax, CGT, following the disposal of a residential property. The current timescale for payment is going to be slashed to 30-days. From April 6 2020, a payment-on-account of CGT, will be required following the sale of…

Read More »

Richard Alecock
4th June 2018 Property Allowance

The property allowance is a tax exemption of up to £1,000 a year for individuals with income from land or property. The property allowance applies to relevant property income which includes: Both UK and overseas property businesses. Both commercial and residential letting (but not rent-a-room businesses – see below).Where property income exceeds £1,000, the legislation…

Read More »

Victor Courdelle
4th June 2018 Whiting & Partners Now Xero Platinum Champion Partner

We are very proud to announce that on 23 May 2018 we achieved Xero Platinum Champion Partner status, joining a select group of 80 other firms Nationwide.  The hard work of all Partners and Staff in reaching this milestone is a credit to each individual and the Firm as a whole. Many of our clients…

Read More »