Speed Limiters To Be Fitted To All New Vehicles From 2022

Speed Limiters To Be Fitted To All New Vehicles From 2022

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Speed Limiters To Be Fitted To All New Vehicles From 2022

The introduction of speed limiters to become mandatory from next year – the reasons why and what it will mean for your fleet

Speed Limiters are already being used in some vehicles. In a bid to reduce the number of deaths from road traffic accidents, car manufacturers such as Volvo have already introduced speed caps to all their new vehicles since 2020, limiting them to 112mph.

From 2022 though, intelligent speed limiters and data loggers will now be a mandatory fitting for all new vehicles. Although approved by European parliament, the UK will also follow suit with these regulations despite their departure from the EU.

What is an ‘intelligent speed limiter’ and how do they work?

There are currently two types of speed limiter. The most commonly used and perhaps most familiar to drivers so far is the adjustable speed limiter- these allow the driver to manually set the limiter to their chosen speed. They require the driver to adjust this accordingly in line with the speed limit.

The second type is known as an intelligent limiter or more formally an ‘Intelligent Speed Assistance’ (ISA).

Now these really are pretty clever- they use GPS data and even traffic recognition cameras to determine the speed limit of the road you are driving on. The Intelligent Speed Assistant will then limit the power of your vehicle to match this speed. This means you are unable to break that speed limit.

Although it is still possible to override by pressing hard on the throttle, many ISA systems will prompt a visual and audio warning until you slow down so it will be obvious you are exceeding the limit.

How do speed limiting systems communicate to your vehicle’s speed?

Various sensors on your vehicle are used to determine the speed it is travelling at-this information is then fed back to the internal computer of your vehicle’s engine. Once the pre-determined limit is met, the computer can restrict the flow of fuel and air to the engine which prevents the driver from exceeding the top speed.

How can the implementation of ISAs benefit your business?

There are multiple benefits that ISAs can bring, many of which will also have a positive financial impact for your business.

Driver safety

This new law will certainly help to improve the safety of our roads with the European Transport Safety Council (ETSC) predicting that limiters could reduce collisions by 30% and save around 25,000 lives within 15 years.

Reduce Costs

Not only will this improve your drivers’ safety on the road but also reduce the amount of accidents for your fleet- all helping to keep costs down and reduce the number of vehicles off the road for repairs.

In addition to this there should also be a reduction in costs to your drivers such as speeding fines, insurance cost hikes due to points on their licence and worst case scenario driving bans.

Having vehicles with safety features like this on your fleet can also help reduce insurance premiums as the risk is lessened.

Fuel Efficiency

With ISAs also improving the fuel efficiency of each vehicle you will save on fuel costs as well as reducing C02 emissions.

Reduction in Wear & Tear

The wear and tear caused to your vehicles should also be kept to a minimum with drivers encouraged to drive in a more efficient and responsible way.

In Summary

There are likely to be the usual dissenting voices amongst drivers. It’s usually along the lines that it’s “big brother” watching over drivers, and that it’s a way of potentially racking up fines etc…by stealth.

However, if there is a reduction in deaths on the roads, and tangible cost benefits, the introduction of speed limiters is probably long overdue. It was something that was always on the cards, it just needed the technology to be available, which it now is.

What are your thoughts on speed limiters? Do you have any concerns? Can you see any disadvantages in them? What would they mean for your business? Please feel free to leave your comments below.

 

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HMRC Clarify VAT on Electric Vehicle Charging Points

HMRC Clarify VAT on Electric Vehicle Charging Points

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HMRC Clarify VAT on Electric Vehicle Charging Points

Over two thirds of current EV registrations are for businesses or fleets. With Government grants available to help offset the cost of purchasing EVs for business, as well as savings on every journey undertaken, it is little wonder that more and more business owners are switching to EVs.

A business or fleet in the UK switching to electric vans or cars can save an estimated 20-30% in upkeep and repair costs alone compared with petrol or diesel vehicles.

This is just one of the reasons the demand for public charging points and their use for charging for business purposes is rapidly rising.

With the addition of electric vehicles still relatively new to most fleets HMRC have been asked to clarify the rate of VAT charged on these supplies as well as the circumstances in which input tax can be recovered.

What is HMRCs policy concerning VAT rates when charging electric vehicles in public places?

Well put simply-supplies of electricity through charging points in public places are set at the standard rate of VAT. There is no exemption or relief that reduces the rate of VAT charged.

What is the ‘de minimis provision’ and when does it apply?

The ‘de minimis provision’ allows for a reduced rate of VAT for supplies of small quantities of electricity.

This applies if the supply is ongoing, to a person’s house or building and less than 1,000 kilowatt hours a month.

It does not count for electric supplies provided from public charging points as they are not to a person’s house or building and are not usually an ongoing supply to one individual-therefore making it difficult to calculate the rate of supply.

So as a business how can this benefit you?

If you are a sole proprietor, charge your electric vehicle at home and you charge your vehicle for business purposes you can recover the input tax.

In order to do this you will need to keep a record of how much you are charging your electric vehicle for business use and how much is for private use as you can recover VAT on the business portion only.

Sole proprietors can also recover the input tax for charging your electric vehicle for business use at other places.

The usual input tax rules apply.

The rate for recovery of input tax for charging electric vehicles is the same as the VAT rate charged on the supply of electricity.

Does the same apply for employees who charge an electric vehicle at home?

I’m afraid not. Even if the vehicle is used for business use you cannot recover the VAT if the vehicle is charged from home. The reason being in this situation the supply is made to the employee and not to the business itself.

What if the employee charges an employer’s electric vehicle at the employer’s premises?

Well that’s a tongue twister!

Even if the vehicle is used by the employee for both business and private use you can claim the full amount of VAT for the supply of electricity used from this charging point.

The employee must however keep a separate record for both their business and private mileage as you will be liable for an output tax charge on the amount for private use.

The second option is to claim the VAT solely for the business portion in which situation the usual input tax rules will apply.

How can you maximise these benefits for your fleet?

Not only is there a huge benefit of convenience in investing in EV charging points both at your business premises and home but it could also be a long term financial benefit.

By maximising the use of these charging points you could avoid paying the VAT which would apply when using public points. If you add up all those savings for your entire EV fleet that could be a nice little saving!

Not only this but you are also able to utilise this saving for your employee vehicles too which is a benefit you’re also passing on to them.

You can read the HMRC article here.

If your business is looking to make the switch for your fleet to electric vehicles, please feel free to contact us with any questions / concerns you might have by using the form below – or ask us in the comments section at the bottom of this page.

Find out more about switching to EV

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