Fleet News

Fleet Management Live: Advice given to delegates on finance and procurement

David Rawlings, fleet consultant, BCF Wessex Consultants and Alastair Kendrick, employment tax partner, Harwood Hutton Specialist Tax Services

The Discover Fleet section, sponsored by All Fleet Services, saw delegates receive advice on finance and procurement from industry experts. 

Alastair Kendrick outlined some of the tax implications that arise when a business has to decide how it wants to lease its vehicle, at last month's Fleet Management Live. Each method has pros and cons, he said. 

“Traditionally when you look at a funding method, you are looking at on- or off-balance sheet, but with the lease accounting changes coming in 2019 that will no longer be an issue.

“You look at your tax and VAT position; if you can’t recover much VAT then contract hire may not be very appealing to you. You then look at residual risk. Are you comfortable with it or do you want to offload it?”

Kendrick then warned fleets about the risk associated with PCH and PCP. 

David Rawlings reflected on his 30 years in the industry pushing the company car as a benefit.

“We have reached a point where there is some real change,” he said.

“Do we want to start thinking about our fleet policy for the coming year? Technology is moving fast. We aren’t going to get a period of stability.

"What we have to do is ask why we want a fleet, what we intended to do with it and where we want to be in the future.”

Pictured: (L) David Rawlings, fleet consultant, BCF Wessex Consultants and Alastair Kendrick, employment tax partner, Harwood Hutton Specialist Tax Services.

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