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
 
Lucy Bayliss
8th January 2020 It’s the final countdown!

There are only 23 days until the self-assessment tax return deadline of 31 January 2020. If your return is not filed electronically by this date, an automatic £100 penalty will be applied. Please note that the deadline for filing a paper tax return was 31 October 2019 and therefore all returns are required to be…

Read More »

Vanessa Pearson
13th December 2019 April 2020 Proposed IR35 changes: Status appeals process

As the planned changes to who determines IR35 status are fast approaching, contractors would be well advised to review their contracts on HMRC’s updated CEST (Check Employment Status for Tax) tool. Having provided answers to questions regarding substitution, control and nature of the work, the updated tool will give HMRC’s view of the workers employment…

Read More »

Ben Kilby
12th December 2019 VAT Surcharge

Have you or your business received one between 23 April 2018 and 31 January 2019?   If so, you may want to check if it has been dated. If it has not been dated you may be in for a refund. Any surcharge liability notice or surcharge liability notice extensions are invalid if they have…

Read More »

Lucy Bayliss
25th November 2019 Don’t let your tax bill affect your festive joy. Instead, spread your tax payments throughout the year!

With the festive period fast approaching, it is easy to lose sight of your self-assessment tax return!   If you are employed or receiving a pension and you file your return before 30 December 2019, you can elect to have your tax collected through ‘Pay As You Earn’ (PAYE) rather than paying one lump sum…

Read More »

Ian Piper
22nd November 2019 2019 Growth: Missing in action?

(Data Source) As another year draws to a close, local SME businesses will be forgiven for looking forward to drawing a line under it. With 2019 sales growth barely nudging 1%, it has been a year of focusing on not slipping backwards, rather than the usual mantra of continually signing up new accounts.  When commentators…

Read More »

Mark Burrows
21st November 2019 Avoiding Self Assessment Tax Scams

HM Revenue & Customs have reminded Self Assessment taxpayers to watch out for fraudsters as the tax return filing deadline of 31 January approaches.   HMRC say they have received nearly 900,000 reports of suspicious phone calls, texts or e-mails from scammers pretending to be the tax authority.  Most of these messages were about fake…

Read More »