19LastyeartheaverageCO2emissionsfornewcarssoldintheUKfelltoanewlowof138.1g/km,anannualdropof4.2%.Fleetsledtheway,withaverageemissionsforvehiclesjoiningfleetstowardstheendoftheyearfallingtojust135g/km,accordingtoresearchfromSewellsResearch&Insight,withexpectationsoffurthersavingstocome.Manufacturerstakemuchofthecreditforthefall,astheirproductshaveenabledfleetstochoosevehicleswhichproducethelowestemissions.ThisyearnewlegislationwillallowcompaniestopushCO2emissionstonewlowsusingthelatestvehicletechnology.Fromthisyear,Europeanemissionstargetscomeintoplayaspartofaprogrammedesignedtodriveaverageemissionsforeachmanufacturertojust130g/kmforallnewcarsregistered.Fiveyearslater,thetargetfallsto95g/km,withafurtherreductionto70g/kmby2020suggested.Asaresult,fleetswillneedtokeepaconstantwatchonnewmodeldevelopmentswhenplanningtheirfuturechoicelistsasmanufacturerscontinueinvestinginevermoreefficienttechnology.Thetargetisbeingphasedinfrom2012,basedon65%ofthemanufacturer'sgreenestcarsin2012,risingto75%in2013and80%in2014.From2015,allnewcarsregisteredwillbetakenintoaccount.Whenmanufacturersmakethetechnologyavailable,fleetshaveshowntheyarewillingtoadoptit,particularlywhenthereisanincentivesuchastheCO2-basedcompanycartaxregime.In-depthanalysisofthecountry'slargest200fleetsbySewellshasshownthatlargefleetshavecuttheiremissionsacrosseveryindustrysector.AverageCO2emissionsfellto139g/kmbyearly2011froma2010averageof143g/km.FleetsintheGovernment/publicsector/education/healthsectorhadthelowestaverageCO2at127g/km.Butthereareindicationsthatfleetswillbetargetingthe100g/kmbarrierverysoon.ManchesterCityCouncilreportedaverageemissionsof110g/km,whilePHSGroupreportedaverageCO2emissionsofjust109g/km.FleetshelppushCO2emissionstonewlowsFindelhasslasheditsemissionsbyalmost25%afterreviewingitsfleet.AverageCO2emissionsforits262carsfellfrom164g/kmto125g/kmandthoseonits165-strongvanfleetfellfrom228g/kmto190g/km,inpartdrivenbyfleetrenewal.Thecarfleetwaspreviouslyamixofpetrolanddieselmodelsandsomeofitsvanswereuptosevenyearsold.Inadditiontocarbonandfuelsavings,thefleethasalsoseenitsmaintenancecostsfall.Casestudy

20ChangestotheCO2-basedcompanycartaxbandstobelaunchedthisyearcouldseethedriversofsomeofthegreenestfleetcarsontheroadhitwithsignificanttaxhikes.Industryexpertsexpectmorethanfouroutof10companycarswillbehitbyataxhikewhenthenewregimecomesintoforceinApril.ItwillendspecifictaxincentivesforcompanycarswithCO2emissionsof120g/kmorless.Thesevehiclescurrentlyqualifyforaspecial10%benefit-in-kindtaxrateunderthequalifyinglowemissionscar(QUALEC)scheme,butthiswillbeabolishedfromApril.Instead,anew10%taxbandwillapplytocarswithanemissionlevelofupto99g/kmunlesstheyqualifyfornewultra-lowemissiontaxbandsforcarswithemissionsof75g/kmandbelow.From100g/kmtherateis11%andrisesby1%forevery5g/kmtothecurrentmaximumof35%(emissionsof220g/km)(seetable).Beforethechanges,thecurrentstandardlowestcompanycartaxbandundertheCO2-basedcompanycartaxregimewas15%.Thequalifyingemissionsforthisbandwillbereducedfrom125g/kmto120g/km.DatagatheredbytheUK'slargestleasingcompanyreveals45%ofnewcarorderswillfallintothe100g/kmto120g/kmtaxbandandbehitbythe'QUALECEffect'.Thereforethesevehicles,aswellasanyexistingcompanycarsemittingmorethan99g/kmofCO2,willsoonbesubjecttoahighertaxburden.LexAutolease,Britain'sbiggestleasingcompany,calculatesthatonly8%ofcarsorderedwillqualifyforthenew10%companycarBIKtaxband(76g/kmto99g/km).So,despiterecenteffortsbymanufacturerstolaunchsub-120g/kmvehiclesandfleets'ordrivers'decisionstoadoptthese,manywillfaceanincreaseinthetaxablebenefittheyaredeemedtoreceiveforhavingacompanycar.Asaresult,theleveloftaxtheypaywillincreaseinadditiontotheamountoftaxtheemployerpaysNationalInsuranceContributions(NIC)onthebenefit.Basedonatypicalfleetof500vehicles,comprisingamixofVolkswagenGolf1.6TDI105MatchandBMW318dSEmodels,emitting119g/km,employers'NICcostscouldrisebymorethan£60,000ayear.AnemployeedrivingthesameBMW318dwillbehitwithayearlyBIKriseof£216iftheyarea20%taxpayerand£432atthe40%rate.Analystssaythatfleetsanddriverswillneedtoconsidersub-99g/kmcarstoensuretheirfleetremainsastaxefficientaspossibleinthelong-term.Newtaxregimetoendsub-120g/kmincentives