< PreviousadRocketEXCELLENT YEAR-ROUND PERFORMANCE. Vector 4Seasons Gen-2 r5CHGV[CPFEQPVTQNKPCNNYGCVJGTEQPFKVKQPU r3WKGVCPFEQOHQTVCDNGTKFG r0QPGGFVQUYKVEJDGVYGGPUWOOGTCPFYKPVGTV[TGU GOODYEAR VECTOR 4SEASONS GEN-2 ALL-SEASONS TYRE TEST START SOMETHING GREAT TODAY. adRocketFP_FLEETNEW_4251001id4221857.pdf 13.02.2020 11:40 19fleetnews.co.uk ■ April 23 2020 TOMORROWS FLEET: THE HUMANDRIVE PROJECT Sponsored by THE GRAND DRIVE VEHICLE Nissan used a modified 30kW Leaf electric vehicle for the journey. As it had to contend with a variety of conditions, from winding country roads with no white lines to motorways, as well as potential bad weather and oncoming traffic, a number of sensors were installed as very precise measurements of the actual conditions were needed, says Moss. These included an advanced GPS system to keep the positional accuracy of the vehicle within centimetres, not within the likes of the 10 metres you get on your standard navigation system, he adds. We also put a lot of other sensors in: eight LiDAR laser scanners, seven cameras and one radar, and these were used in different combinations so the vehicle could understand where it was, what was around it and then plot the safest route using that data. THE GRAND DRIVE JOURNEY The journey took place in November, beginning at Nissans research centre in Cranfield and finishing at the gates of the manufacturers factory in Sunderland, where the vehicle was originally built. Two engineers fully trained to conduct auton- omous vehicle testing were on board, with one HUMANDRIVE PROJECT CONSORTIUM MEMBERS AND AREAS OF EXPERTISE Nissan: Lead partner and leading the autonomous vehicle (AV) development Hitachi: Artificial Intelligence to provide human-like control and perception University of Leeds: Understanding humanistic driving and its application to AVs, while also developing a driver risk model Connected Places Catapult: Project management, communications and marketing activity, disseminations and safety case elements of the project Horiba Mira: Provider of test facilities, supported safety aspects of the project SBD Automotive: Cyber security support and AV human machine interface studies Cranfield University: Provider of test facilities and supported AV demonstrations Atkins: Provision of a cybersecurity framework Aimsun: Studying the impact of AVs on the transport system Highways England: Understanding the infrastructure needs for AV deployment. behind the wheel and ready to take control if required, while the other supervised the cars control and monitoring systems. The aim was to carry out the entire journey fully-autonomously with the exception of: ■ Service station breaks for charging/rest. ■ Any major incident on motorway/highway. ■ The mechanical failure of the vehicle. ■ Emergency vehicle access. ■ Overtaking cyclists. ■ Where deemed necessary to avoid injury to passengers or other road users. During the journey, the autonomous tech- nology activated to change lanes, merge and stop and start when necessary. Im pleased to say the drive was completed over 99% in fully autonomous mode, says Stephens. KEY LEARNINGS The project helped the consortium understand the challenges of fully autonomous driving on the public road network. Particular issues identified were being able to identify road markings, while there was a real challenge around on-street parking and street furniture and how easy it is for an autonomous car to be able to detect where the roadway is, says Stephens. We also learned about the importance of using a diversity of technologies in autonomous vehicles, he adds. Its not that one technology will work for all road conditions, particularly in terms of positioning and locating the vehicle; you need a variety of different technologies such as GPS, camera systems, LiDAR and so on. There were also challenges around traffic signal recognition with a question about the extent to which we depend and design on what Id call dumb road infrastructure versus future intelligent traffic systems. Following HumanDrive, Nissan is to look at other areas related to the project. These include developing AI technologies for complex situations at intersections, including vehicle and pedestrian interaction, as well as a feasibility study to clarify how autonomous vehicles fit within a wider urban transport system. Inside the modified Leaf EV used for the HumanDrive project20April 23 2020 ■ fleetnews.co.uk TOMORROWS FLEET: FUTURE TRANSPORT ZONES SOLENT DRONE TRIAL COULD SAVE LIVES Drones will be used to fly medical supplies from the UK mainland to the Isle of Wight as part of a £90m Goverment programme Sponsored by rones will be used to fly NHS medical supplies from hospitals on the UK mainland to the Isle of Wight in a new Government- funded mobility project. The scheme, which will help speed up diag- noses by cutting out time spent journeying on ferries and roads and could potentially save lives, says Ian Ward, cabinet member for transport at Isle of Wight Council forms part of Solent Transports successful bid to be named as a Future Transport Zone (FTZ). Under this £90 million Government programme, four areas have now been named as FTZs to provide real-world testing of new transport innovations, allowing experts to work with a range of local bodies such as councils, hospitals, airports and universities to test ways to transport people and goods. Transport for West Midlands was named as the first FTZ at the end of 2018 and was last month (March) joined by Solent Transport, the West of England Combined Authority (WECA) and Derby and Nottingham, to complete the areas taking part in the initiative. D Here we take a closer look at what the newest additions to the programme involve. SOLENT TRANSPORT Solent Transport, which comprises South- ampton City Council, Portsmouth Council, Isle of Wight Council and Hampshire County Council, was awarded £29m. As well as trialling the drones, which could eventually be used to transport chemotherapy kits, the three-year Solent Transport Zone aims to address local challenges such as high levels of car usage and the environmental impacts of freight movement within Solents urban areas. Personal mobility projects will include an upgrade of the Solent Go multi-operator smartcard to an app-based platform to create a mobility as a service (MaaS) app. This will be trialled at the Universities of Southampton and Portsmouth. A bike/e-bike hire scheme will also be developed. The sustainable urban logistics projects will see Solent Transport working with university partners to test different and less environmen- tally damaging approaches to freight and small package deliveries in urban areas, such as e-cargo bikes. DERBY AND NOTTINGHAM The Government granted Derby and Nottingham £17m for its FTZ, which will cover the Derby and Nottingham conurbations and growth areas including the proposed HS2 East Midlands Hub Station, and East Midlands Airport and East Midlands Gateway employment zones. This bid is focused on three areas: ■ Creating three types of electric mobility hub: neighbourhoods, campuses and depots. Each will aim to encourage the take-up of alter- native travel methods and offer electric car club hire, electric bike-sharing, vehicle charging points, digital information screens and real- time public transport information. ■ A new website and smartphone app to plan, book and pay for public transport, plus bike hire, car share, taxi journeys, car parking and vehicle charging, as well as discounts and bundles to reward and incentivise trips. ■ A data platform to pool transport data sources owned and collected by the council into one place to provide a network-wide picture to improve the efficiency of the traffic control centre and keep commuters informed of the latest information. There will also be the oppor- tunity to trial new modes of transport such as autonomous vehicles to investigate how they could safely, and sustainably, be incorporated into Nottinghams established networks. WEST OF ENGLAND COMBINED AUTHORITY WECA has received £24m for a programme to test how new technologies can be used to make it radically easier for people to move around the region, planning and changing between different modes of transport on a single ticket to get to their destination. It will also see the use of e-scooters being trialled in the region, while WECA will also work to trial self-driving cars to transport people between Bristol airport, central Bath and the Northern Arc. Initiative forms part of successful £29 million bid to Governments Future Transport Zone scheme. Andrew Ryan reportsadRocketFrom 24-hour breakdown cover to accident assistance, with mobile technical services and connected solutions that help keep your wheels in motion. Well keep your fleet working for you Talk to us today about Business Breakdown Cover Call 0800 294 2994 Or visit theAA.com/business using promo code: 0770 adRocketFP_FLEETNEW_425796id4273985.pdf 14.04.2020 10:03 22April 23 2020 ■ fleetnews.co.uk ELECTRIC FLEET: SALARY SACRIFICE he fortunes of salary sacrifice schemes for cars has ebbed and flowed over the years to reflect changes in the tax climate, but experts believe they are now perfect to help employees move into electric vehicles. The latest changes - introduced in 2017 by the Government under the Optional Remuneration Arrangements (OpRA) reduced the savings available through the staff benefit in the majority of cases, therefore lessening the schemes appeal. However, ultra-low emission vehicles were not affected and the introduction of new benefit-in- kind (BIK) tax rates at the start of this month, which include 0% for battery electric vehicles (BEVs), make salary sacrifice effectively perfect for perk drivers who want electric cars, says David Raistrick, senior manager at KPMG in the UK. There are fantastic savings to be had for the employee and employers from successfully introducing salary sacrifice arrangements, he adds. Now is really the time to think about these arrangements they should really take off again. These savings can amount to several thousands of pounds per vehicle each year and leasing companies such as Arval UK and JCT600 Vehicle Leasing Solutions have either already seen a surge in interest or expect salary sacrifice to become increasingly popular for EVs. We are already seeing a resurgence of salary sacrifice [for EVs], especially at the management and senior management level, says Christopher Caddick, head of business development at JCT600 VLS. Shaun Sadlier, head of consultancy, Arval UK, adds: Our view is the new arrangements make the EV and ultra-low emission company car an attractive option for employees including via salary sacrifice. We expect to see numbers grow over the coming years. WHATS DIFFERENT? The way salary sacrifice schemes operate stays the same: the employer leases the car, inclusive of maintenance and insurance, and the employee sacrifices part of their salary before tax to pay for it. T Salary sacrifice perfect for electric vehicles The 0% benefit-in-kind tax rate for battery electric vehicles makes the staff benefit a valuable tool, experts tell Andrew Ryan23fleetnews.co.uk ■ April 23 2020 THIS MAKES THE EV AND ULTRA-LOW EMISSION COMPANY CAR AN ATTRACTIVE OPTION SHAUN SADLIER, ARVAL UK This means employers can save on national insur- ance contributions (NIC) for every employee on the scheme, while participating employees save on national insurance and income tax. Before the OpRA changes, drivers obtaining a car through salary sacrifice were taxed on the BIK value of their car and dependent on the choice of vehicle were able to make income tax and national insurance contribution (NIC) savings by paying for it out of gross salary. The reduction in taxable pay also reduced the NICs employers made. However, the current rules mean that anyone who now enters a salary sacrifice agreement for a car with CO 2 emissions of 76g/km and above pays income tax on the greater of the taxable value of the vehicle or the salary being sacrificed for the car. Industry estimates at the time suggested the change could cost drivers up to £240 more a year than the old rules. Employers also have to pay NIC on this amount, meaning they do not enjoy the same savings as before. ULEVs, however, were exempt from the changes, and the Governments decision to cut the BIK tax rate on BEVs from 16% in 2019/20 to 0% in 2020/21 has unlocked significant savings for both employers and employees. Salary sacrifice provider Tusker says the change to BIK tax makes BEVs cheaper than petrol or diesel cars, despite them having higher P11D prices. Put simply, salary sacrifice is key to making BEVs affordable for the average British motorist, says Paul Gilshan, chief executive officer at Tusker. WHAT ARE THE POTENTIAL SAVINGS? Fiona Howarth, CEO of Octopus Electric Vehicles, says an average car-driving employee could retain up to £7,000 in a four-year period by acquiring a BEV through salary sacrifice that would otherwise have gone on tax, fuel and maintenance that a petrol or diesel car would typically need. She gives two specific examples of the potential tax savings. One is for Max, a 20% taxpayer earning £40,000 who has taken a Nissan Leaf over a three-year/30,000-mile term. Each month he sacrifices £439 from his gross salary for the car, which in 2020/21 sees him save £141 in income tax and NIC each pay packet. He also pays no BIK this year, although this increases to £5 and £10 a month in the following two years as the BIK rates for BEVs increases to 1% and 2% respectively. This gives Max an average monthly net payment of £303 per month, a saving of £4,896 over the three years. Over the term of the lease, his employer saves an average £57 in NI each month, which is a total of £2,052. The other example is for a 40% taxpayer Julia - earning £60,000 who has taken a Tesla Model 3 over a three-year/30,000-mile term. Each month she sacrifices £835 from her gross salary for the car, which in 2020/21 results in an income tax and NIC saving of £351 per pay packet. Julia pays no BIK in 2020/21, although this increases to a monthly £14 and £29 in subsequent years which results in an average monthly net payment of £498. This is a saving of £12,132 over the term of the agreement. Her employer saves £3,960 over the three years, a monthly saving of £110. FOR EMPLOYERS ➊ HR ■ Significantly enhances the total benefits package ■ Supports employee recruitment and retention ■ Provides an all employee benefit ■ Bespoke schemes can be tailored to individual corporate needs ➋ Financial ■ Reduces salary and national insurance costs ■ Controls salary costs via the effective use of flexible benefits ■ Lowers business mileage reimbursement costs ➌ Corporate social responsibility ■ Improves compliance with health and safety and duty of care legislation ■ Reduces employee travel carbon footprint by encouraging move from petrol or diesel grey fleet vehicles to safer and lower emission vehicles FOR EMPLOYEES ■ Access to a new car every three to four years, usually at a lower cost than other methods of new vehicle provision ■ Typically no deposit or credit checks and no impact on personal credit ■ Tax and national insurance liabilities are reduced as payments are deducted from gross salary ■ All-inclusive, hassle-free motoring at a fixed monthly cost. This can include servicing and maintenance, breakdown and recovery, road fund licence, fully comprehensive insurance, replacement tyres and accident management ■ Access to a tax-efficient second or third car. Source: Energy Saving Trust BENEFITS OF SALARY SACRIFICE FOR BEVS Sponsored by24April 23 2020 ■ fleetnews.co.uk ELECTRIC FLEET: CHOICE LISTS Organisations can use their company car choice lists as a tool to increase uptake of electric vehicles . Andrew Ryan reports CHOICE CUTS25fleetnews.co.uk ■ April 23 2020 lectrifying fleets is a priority for many organisations striving to lower their environmental impact and adapt ahead of the Governments 2035 ban on the sale of new petrol and diesel cars. However, obstacles such as vehicle availability and the generally high P11D price and lease rentals of electric vehicles in comparison to ICE cars as well as a mistrust of the technology by some drivers have stood in the way. The new benefit-in-kind rates introduced on April 6, which lower the tax on battery electric vehicles (BEVs) from 16% in 2019/2020 to 0% in 2020/21, have provided a seismic shift in the appeal of the technology to company car drivers, says Matthew Hunnybun, partner, employment tax, at KPMG in the UK. It also provides fleets with the chance to revise their company car choice lists to ensure EVs are available to as many members of staff as possible. Now is exactly the right time for organisations to review their company car strategy and policy, says Hunnybun. E Sponsored by Its really important to remember that however good your company car scheme is, it will depend on the communication the employees will need to understand it, be bought into it. We have experience of really good schemes that have fallen at the last hurdle or just been not well received because the employees didnt understand the benefits to be had. Here we look at how an organisation can use its company car choice list to encourage EV uptake. USE WHOLELIFE COSTS Historically, what we see with a lot of organisations is they looked at car banding predominantly based on lease cost or lease and maintenance, says David Raistrick, senior manager at KPMG in the UK. This effectively penalises EVs as their P11D prices which are a key influencer of lease rentals can be significantly higher than those of petrol or diesel models. The Mini Electric has a starting price of about £24,000, whereas a petrol Mini has a starting price of around £16,000, adds Raistrick. Similarly, with the Volkswagen e-Golf, youve got an £11,000 differential with the starting price for a petrol model. But what we are starting to see with clients is effectively a change in how they think about the cost of vehicles. This sees them adopt a wholelife cost (WLC) model, where the significantly lower tax, fuel and SMR expenses are taken into account, enabling EVs to be offered in many more company car grades. An example KPMG used in a webinar entitled Company cars: it is time to review your strategy, compares a fully-electric Nissan Leaf with a diesel Ford Focus, a hybrid Toyota CH-R, and petrol and diesel Volkswagen Polos (see table below). The Leaf has the highest P11D price by more than £5,000, which helps give it an annual lease rental of £5,400 between £1,900 and £1,200 more than any other car in the comparison. However, when fuel, insurance and national insurance contributions (NICs) are included in the calculation, the Leaf at £7,000 for a 20,000-mile year costs between £321 and £544 less for an organisation to run than the other vehicles in the comparison. The major savings are the lower fuel cost, which is up to two-thirds cheaper than one of the models it is being compared to, while the 0% BIK tax rate for battery electric vehicles for 2020/21 mean an organisations NIC is nil, up to £792 less a year then the other cars. Its just a case of thinking about things slightly differently if you want to get more electric cars on to your list, says Raistrick. Claire Evans, head of fleet consultancy at Zenith, says it is essential fleet operators of cars or commercial vehicles use a WLC methodology to accurately assess and obtain the cost benefits from EVs: a view also shared by the Energy Saving Trust (EST) This approach should be applied to all vehicle acquisition, adds Ian Featherstone, account manager supply chain at EST. If an annual lease price is used to determine choice, then significant costs/savings wont be taken into account. Featherstone says when calculating WLCs for EVs, organisations should make sure the pence per kWh rate used to calculate the cost of fuel is sensible. Dont assume a 100% domestic night-time rate of (say) 8p per kWh when much of the charging may cost 15p or more, he says. ModelFuel type P11DCO 2 BIK tax band 2020/21 Annual rentalFuel economyAnnual fuel cost* National insurance InsuranceTotal annual cost Toyota CH-RHybrid25,1008622%£4,20061£1,782£762£800£7,544 Ford FocusDiesel21,2509327%£3,85060£1,970£792£800£7,412 VW PoloDiesel19,5859728%£4,00060£1,973£757£800£7,000 VW PoloPetrol17,30510425%£3,50045£2,424£597£800£7,530 Nissan Leaf AcentaElectric30,13500%£5,400N/A£800£0£800£7,000 Source: KPMG *based on 20,000 miles per annum CASE STUDY: WHOLELIFE COST COMPARISONSadRocketELECTRIC ARE YOU WITH US? Think electric. Think Zenith. For all of your electric fleet needs in one place Call 0344 848 9311 oneteam@zenith.co.uk | zenith.co.uk For our latest electric driver guides and insights Visit zenith.co.uk/insights adRocketFP_FLEETNEW_4243552id4253468.pdf 16.03.2020 15:11 27fleetnews.co.uk ■ April 23 2020 ELECTRIC FLEET: CHOICE LISTS Sponsored by If rapid charging is required for longer journeys, then the costs could rise to 30p to 50p per kWh. It would be worth looking at one of the fuel cards now available which could offer a fixed cost to charge across the networks they have a contractual agreement with. Using WLC to determine choice lists also means an employees decision will take into account the costs their employer incurs. Evans adds: In addition, looking at cost post-tax is also important, as low emitting cars have further corporation tax benefits as they are not subject to lease rental restriction and a lower 6% capital allowance rate. It will be even more relevant from April 2021 when the threshold for these benefits is lowered to 50g/km from 110g/km. WLC not only helps fleet operators realise cost benefits but can open choice to employees as they utilise their monthly budget, spending more on a private use contribution and less on benefit- in-kind. It can provide access to more prestige or larger vehicles than may otherwise have been affordable within their grade. ALLOW DRIVERS TO MAKE CONTRIBUTIONS Employers should be flexible with the amount drivers can contribute to the car scheme to ensure a range of EVs are available at all grades, says Evans. For example, if the WLC of a Tesla Model 3 Long Range is £600 and a companys WLC entitlement is £500, then without a driver contribution the vehicle would not be available. However, if the driver could pay £100 contribu- tion towards the Tesla, they would pay £0 BIK and yet still be in a better total cost position, compared to the average BIK cost of £300-£400 (40% taxpayer) for equivalent petrol and diesel cars within their entitlement, says Evans. The driver gets a £200 to £300 a month saving and the opportunity to switch to cleaner technology at no extra cost to the employer. PRESENT POLICY IN A SIMPLE WAY John Lawes, managing director at Hitachi Capital Vehicle Solutions, adds many employers are also providing more generous allowances to permit BEVs to be available to more employees pay grades. One challenge that needs to be taken into account is how much information is provided to the driver during the process as this can often be overwhelming, says Lawes. If presented in a simple way and in a way that ensures employees fully understand the policy, this should support the uptake of BEVs at a time where more would be available under a wholelife cost policy. Moving to electric vehicles can already be a daunting prospect for drivers who are familiar only with petrol and diesel models, so understanding potential barriers to EV adoption is crucial, adds Evans. Focus on designing policy and issuing clear communications that help to inform employee choice and remove these perceived barriers, she says. Engagement and education are pivotal to successful uptake. Successful policies with good uptake offer driver support and education about available vehi- cles and how to optimise the use of home, work and public charging. OTHER INCENTIVES EST and Zenith agree a WLC-based choice list and the current tax system negate the need for employers to introduce other financial incentives to encourage EV uptake. Where employers can assist is by considering benefits such as access to workplace charging or preferential parking for drivers of electric cars, says Evans. We are working with customers to adapt policies to add more BEV options for drivers. It is achieved through revisiting manufacturer options to open up choice and looking at matching the suitable BEV cars to the drivers travel needs in each grade. Ongoing driver education will also be key to increasing uptake. It will be essential for businesses to educate employees now on the benefit of alternatively fuelled vehicles so they are well informed on what the future holds for the fleet sector and can make the right decisions based on their needs, says Lawes. The key non-financial measure that businesses are taking is making the employee journey a simple one. Providing tools to help employees navigate the decision-making process is crucial to gain the trust and confidence of employees in the electrification process. For example, highlighting the financial benefits of an electric car such as the reduction in cost of private motoring (fuel) could be a factor that employees hadnt previously considered. ITS A CASE OF THINKING ABOUT THINGS DIFFERENTLY IF YOU WANT TO GET MORE ELECTRIC CARS ON TO YOUR LIST DAVID RAISTRICK, KPMGNext >