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News and Updates from CVSL

Budget 2014 – News

Tax and Legislation News

VBC (Van Benefit Charge)

The anticipated change to a CO2 based regime has been granted a stay of execution with the Chancellor, George Osborne, announcing that the VBC will increase in line with the RPI (Retail Price Index) from April 2015.

AIA (Annual Investment Allowance)

Businesses looking to invest in a tax-efficient way have been handed a boost by measures outlined in the Budget 2014 announcements.

The Annual Investment Allowance (AIA) will increase to £500,000 per business from April 2014 until December 2015,at which point it will return to £250,000.

The Annual AIA, which allows businesses to invest in new plant and machinery – including Light Commercial Vehicles (LCVs) – for maximum tax benefits, was initially cut from £100,000 to £25,000 by the coalition.

However,as part of an effort to provide greater tax aid to businesses,the Chancellor has further improved on the 2012 increase to £250,000 by doubling the amount. Moving forward,the AIA has been extended to 2015 and is now worth £500,000.

The AIA is a type of capital allowance,offering tax relief at 100 per cent on qualifying expenses throughout the year of purchase. The maximum businesses can deduct from taxable profits is now £500,000. This pro-rates for short or long periods, and also for periods that span the operative dates and rates of allowance.

CVSL will advise you on this valuable tax benefit with the best funding options to suit you business structure. Timing is critical so contact us now on 0800 085 425 to see how you could make the most from AIA for this financial year before 5th April 2014

 

 

Winter Tyre Safety

Tax and Legislation News

Why are Tyres Important? Most drivers know that snow and ice can dramatically affect their safety on the road. Steering, acceleration and braking are more difficult as normal tyres have less grip in these conditions. However, it is not just these extreme wintry conditions which can reduce your safety on the road. Even cold, damp roads can dramatically affect the performance of tyres, leading to an increased accident risk. Thankfully though, tyre manufacturers have developed a range of winter weather tyres which are specifically designed to operate in these conditions, delivering improved safety throughout the entire winter period.

Hazardous Conditions

While snow and ice present the most obvious hazard to motorists, most drivers change their driving style to suit these conditions.

However, cold, damp roads are visually no different to wet conditions in the warmer months and drivers tend not to adjust their driving style. A tyre’s performance though, is significantly reduced by this combination of conditions, making cold damp roads one of the highest

Tyre Technology

Air temperature is a crucial factor in a tyre’s ability to perform. When the temperature drops below 7°C, the tread compound in normal tyres begins to harden, providing less grip. The tread compound in winter weather tyres contains more natural rubber and advanced silica compounds to minimise the hardening effect, giving extra grip and shorter stopping distances in cold, damp conditions. Together with sophisticated multi-sipe tread patterns, the combination is one that no summer tyre can match, making winter weather tyres the safest option from October through to March, when temperatures rarely rise above 7°C. This especially applies to commuters and business motorists who are on the roads in coldest conditions in the early morning and evening.

Tests conducted by the British Tyre Manufacturers’ Association found that a car braking at 60mph on a wet road at 5°C stopped five metres shorter, equivalent to more than one car length, when fitted with winter weather tyres.

Checks for all

All drivers, irrespective of whether they fit winter weather tyres or not, should carry out regular checks throughout the winter to ensure their tyres are in the best possible condition for maximum safety.

In winter tread depth should be checked to ensure it is well above the legal minimum of 1.6mm across the central 3/4 of the tyre, around its entire circumference. TyreSafe has developed the 20p test for a simple and quick way to test your tyres’ tread depth.

Tyre pressures should be checked at least once a month or before a long journey. Pressures should be checked when the tyres are cold (i.e. travelled less than 2 miles) against the vehicle manufacturers recommended levels.

When checking your tyre pressures, give the rest of the tyre a thorough visual inspection for any signs of damage. Look for any cuts, cracks bulges and remove any embedded objects.

 

Employees feel under pressure to answer hands-free phones

Tax and Legislation News

A growing number of employees are saying that their employer is not actively encouraging the safe and legal use of mobile phones while driving for work. Some astounding results were found after the AA did recent survey on 7,000 people

More than one in 20 (7%) Employees are feeling  under more  pressure to answer their hand-held work mobile when driving for work or commuting. 2% of employees even said they have been explicitly told they are expected to return emails, texts and calls when they are driving for work or commuting.

Even though people are often under considerable pressure to be available to their work at all times. They must realise that driving is the most dangerous task the majority of employees undertake while at work so feeling that you have to respond to calls, texts and emails when you are driving is an unnecessary risk.

Besides the dangers posed to the individual taking and receiving calls, texts or emails while driving, companies have a duty of care to employees they also run the risk of facing charges of corporate manslaughter in the worst case scenario.

Employers have a statutory duty of care and, besides the risk to their employees, they are putting themselves at risk of liability and criminal charges in the event of a crash if the company’s actions, or lack of them, is deemed to have contributed to the incident. This is a growing problem and should not be neglected.

 

Don't Forget To Renew Your Photocard Driving Licence

Tax and Legislation News

Avoid the £1000 fine for expired licence

There are over two million motorists in the UK who are currently driving with an out of date driving licence. Most drivers believe that their new style licence is for life but the licence actually expires after a set period and has to be renewed, in fact photocard licences must be renewed every ten years. This is a problem we are coming up against every week here at CVSL when we ask for clients photocard driving licences.

We recommend you dig out your licence out and do a quick check this  can even help you avoid a £ 1000 fine. There are a few dates printed on the photocard, but the one you are looking for it the photo expiry date printed on section 4b on the front of the card.  If you find it is out of date then you need to renew it, the process is the same as if you were replacing a lost or stolen licence, you can either apply online, providing you've a had a new digital passport issued in the last five years (it'll use the same photo as on your passport), by post or in person at selected post offices

Check name and address

When checking that date on your licence also check that you have the correct address on it. It is free to change your address and you still risk the £ 1000 fine if it has not been updated. It has been reported that over 2.6 million motorists have not updated their driving licence with their current address and 3% of married women had an out-of-date name on their licence, which can also incur a £ 1,000 fine.

The first batch of ten year photo licences was issued in July 1998 so if you received your licence that year your licence will most certainly be out of date.

The DVLA state that drivers are allowed to continue driving if they have failed to renew before the expiry date but they ‘could’ be charged with ‘failing to surrender their licence’ which is an offence carrying the  £ 1000 fine.  The Association of British Insurers and the Department of Transport said that insurance cover was not affected if drivers failed to update their photocard. It's also worth noting the DVLA advises any driver travelling abroad to carry a photocard licence, rather than the older all-paper version, whilst this isn't obligatory, it may make your journey easier where required.

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10 Top Tips to keep your SME fleet legally compliant

Tax and Legislation News, , , , , ,

IF YOU run a small fleet of 5 or more vehicles you have a legal obligation to ensure you assess the road risk of your drivers and that your company cars comply with safety and documentation requirements.

Many small business owners understand these responsibilities and ensure that their company cars and drivers operate under the rules of Corporate Governance and meet HSE requirements. 

It’s crucial that you can demonstrate that the vehicle is safe and the driver is trained

10 Top Tips of what you need to do split up into the requirements for drivers and vehicles. 

Vehicles

1.  Keep full records and vehicle documentation where they are both safe and accessible. Appoint someone sensible to be responsible for them. For each vehicle you should have the V5 (log book), insurance documentation, MOT (if applicable), service records and maintenance reports.

2.  Keep a dedicated ‘Daily Log’ for each vehicle, where regular checks can be recorded. These must show that every vehicle is safe, and roadworthy. This becomes the vehicle’s ‘audit trail’.
These daily checks are done by the vehicle’s driver and/or the business car manager, but whoever does it, keep contemporaneous notes on what was found and what action was taken to correct any faults or damage.

3.  Don’t neglect those company cars that are used only occasionally, and don’t neglect employees’ own cars that are used on company business – the so-called ‘grey fleet’. If the vehicle is being used on company business, you are responsible for ensuring that it is legal and roadworthy. It even applies to contractors’ vehicles.

4.  Resolve problems straight away, and if you find something dangerous or even just potentially dangerous the vehicle must not be used.

Drivers

5.  Your responsibilities cover any driver working on your company business. So whether the driver is a full or part-time employee, an agency driver or someone working for a sub-contractor, you must ensure that they are fit to drive.

6.  You must have a ‘Driving at Work’ policy for your business drivers.
Keep it up to date as legal obligations and requirements change.
Give a copy to every driver; they should sign to confirm they’ve received it, and again to confirm they’ve read and understood it, and will comply with its requirements.
Your Driving at Work policy should cover such issues as mobile phone use, smoking, eating, driving, drug use, speeding and other driving offences. It should describe what the driver should do in the event of an accident. Consider the risks your drivers may encounter if, for example, you expect them to make long journeys or deliveries, and cover these points too.

7.  Always do a full driver’s license check, not just a simple visual check. The information needs to come from the DVLA to ensure that you achieve compliance and are 100% sure the driver is legal to drive.
License checking is a vital part of the risk management process. It should be repeated at least annually, and more frequently for drivers with points on their licenses. I always recommend that companies check drivers’ licenses before they are employed – and that includes agency and part-time workers.

 8.  You have a legal responsibility to assess each and every driver for road risk. This can be done online but it’s imperative to remember that if any driver shows up as ‘high risk‘, you must follow up the assessment with training.
Again, much of this can be done online unless the driver’s risk assessment demands in car training. Online training is cost effective, particularly if large groups of drivers are involved, it ensures that you can demonstrate that you have met your Duty of Care, and it creates an audit trail for your records.

9.  If your risk assessment finds a driver who is at high risk, failure to act can mean that you may be held culpable if the driver is subsequently found to be at fault in an accident.
Since you knew there was a risk, it was your responsibility to act and failure to do so puts you in a worse position than if you’d been ignorant of the risk.
So make sure that you satisfy yourself that you have access to remedial training before you begin your risk assessments.

10.  It is  also recommended  that you ask that your drivers to take annual health and eyesight checks which can catch problems early and help to ensure drivers are physically fit to drive and comply with the minimum eyesight requirement.  

It seems exhaustive but it’s worth implementing a plan of action and a driving at work policy.

Comply and stay legal or, chance your arm and hope that your drivers aren’t involved in an accident where the consequences leave your and the company exposed to prosecution through criminal or civil proceedings.

We hope you will find the above information usefull as we  feel we should always try to keep  all our CVSL customers  well informed about any new  legal requirments.

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