Cars and vans for fleet use are capital-hungry assets which just happen
to be subject to a range of complex tax and accountancy regulations. The changes to
Corporation tax from April 2009 provide a strong indication to all fleets that
the whole basis of funding should be reviewed. It may not be necessary to make
any changes – but the new writing-down allowance arrangements (based on CO2
for cars) means that the rules and tipping-points for “purchase” versus “leasing” will
change – and not just in relation to “green” cars either. There are some anomalies in
the proposals which at this stage seem “perverse” to say the least!
The pre-eminent position of the UK fleet market – one of the largest and certainly
the most mature and sophisticated in the world - has led to many different funding
methods being made available to fleet operators. There are systems and schemes available
to suit every viable demand. But with that complexity comes the very real danger of picking the "wrong"
scheme for all of your individual circumstances.
Whether you need to fund fleet vehicles on or off balance sheet; whether you're cash-rich or requiring
borrowings, Fleet Audits can identify ways to optimise cash-flow and/or minimise actual
cash expenditure. Our proven funding evaluation model analyses
funding costs for the entire fleet over at least one full replacement cycle.
It includes taxation effects and fleet-specific elements such as lease rental disallowances,
realisable vehicle residual values and other factors, all to ensure that “real-life” fleet
operational elements drive the results to be totally relevant and accurate.
With our extensive knowledge of the key funding and leasing products available in this specialised
market place, and an in-house database of average contract hire rates for the UK market,
we have all the tools and expertise to ensure your funding method best fits both your fleet and your company's
high level financial objectives. And we’re not just limited to UK studies: we have carried out
funding and taxation analysis for clients with fleets operating across a number of