Business Update – March 2021

Posted Posted on Categories Days Fleet

Welcome to our Business Update for March, included in this month’s update:

Budget Summary

Chancellor of the Exchequer Rishi Sunak delivered his second Budget speech earlier this month.

Covid Support Measures
Policy 1: Coronavirus Job Retention Scheme (Furlough)

Will be extended until the end of September. Employers will be expected to pay 10% towards the hours their staff do not work in July, increasing to 20% in August and September, as the economy reopens.

Policy 2: Eligible retail, hospitality and leisure businesses pay no business rates for 3 months, with up to 66% relief for the rest of the year.

This measure grants a 100% business rates discount to businesses occupying eligible retail, hospitality and leisure properties in England for three months from 1 April 2021. For the remainder of the financial year, these properties will receive a 66% discount with a cap of £2 million per business for those that were required to close as at 5 January 2021 and a cap of £105,000 per business for those that were not required to close. Businesses can choose to opt out of the relief.

Policy 3: Restart grants and additional discretionary business grant funding    

The government will provide ‘Restart Grants’ in England of up to £6,000 per premises for non-essential retail businesses and up to £18,000 per premises for hospitality, accommodation, leisure, personal care and gym businesses.

The government is also providing all local authorities in England with an additional £425 million of discretionary business grant funding, on top of the £1.6 billion already allocated.

Policy 4: Extended the temporary reduced VAT rate for hospitality and tourism.

The government announced at Budget 2021 that the temporary reduced rate will be extended for a further six-month period at 5% until 30 September 2021. A new reduced rate of 12.5% will then be introduced which will end on 31 March 2022. The scope of the relief will remain unchanged.

Policy 5: New government-backed UK-wide Recovery Loan Scheme  

From 6 April 2021 the Recovery Loan Scheme will provide lenders with a guarantee of 80% on eligible loans between £25,000 and £10 million The scheme will be open to all businesses, including those who have already received support under the existing COVID-19 guaranteed loan schemes.

Policy 6: Support for airports

The government is renewing the Airports and Ground Operations Support Scheme for a further six months from the start of 2021-22. This will provide support for eligible businesses in England up to the equivalent of half of their business rates liabilities during 2021-22, subject to certain conditions and a cap per claimant of £4 million

Decarbonisation  
Policy 1: 130% Super Deduction for main rate assets and 50% First Year Allowance for special rate assets for two years

This measure will allow companies to claim 130% in-year relief for main rate capital expenditure on plant and machinery and 50% in-year relief for special rate capital expenditure, excluding operating leases, second-hand assets and cars from 1 April 2021 to 31 March 2023. Detailed guidance is given here: link.

Motoring Taxes
Policy 1: Fuel duty will remain frozen for the eleventh consecutive year.
Policy 2: HGV Road User Levy: suspend for a further 12 months from August 2021  
Policy 3: HGV VED frozen 2021-2022
Policy 4: Vehicle Excise Duty (VED)

The government will uprate VED rates for cars, vans and motorcycles in line with RPI from 1 April 2021. The BVRLA’s fact sheet on VED has been updated.

Policy 5: Fuel benefit charges and the van benefit charge

As announced by Written Ministerial Statement on 4 February 2021, the government will increase the van benefit charge and the car and van fuel benefit charges by the September 2020 Consumer Price Index.  The BVRLA’s fact sheet on fuel benefit charges and the van benefit charge fact sheet has been updated.

The change will have effect on and after 6 April 2021.

Other announcements
Policy 1: Corporation Tax: 19% rate for profits up to £50,000, tapering to main rate of 25%for profits over £250,000, from April 2023

This measure introduces a Small Profits Rate (SPR) of Corporation Tax (CT) at 19%for companies with annual profits below £50,000 and a main rate of 25% for all other companies. Marginal relief is available for companies with annual profits between £50,000 and £250,000, such that they pay CT at an overall rate between 19 per cent and 25 per cent. It will be implemented from April 2023.

Policy 2: Extended Loss Carry Back

The trading loss carry-back rule will be temporarily extended from the existing one year to three years. This will be available for both incorporated and unincorporated businesses.

  • Unincorporated businesses and companies that are not members of a corporate group will be able to obtain relief for up to £2 million of losses in each of 2020-21 and 2021-22
  • Companies that are members of a corporate group will be able to obtain relief for up to £200,000 of losses in each of 2020-21 and 2021-22 without any group limitations
  • Companies that are members of a corporate group will be able to obtain relief for up to £2 million of losses in each of 2020-21 and 2021-22, but subject to a £2 million cap across the group as a whole
Policy 3: Levelling-up fund

The government is launching the prospectus for the £4.8 billion Levelling Up Fund today.

The Fund will invest in infrastructure, including town centre and high street regeneration, local transport projects, and cultural and heritage assets.

Policy 4: Government intends to announce some consultations separately from the Budget

They will publish a Command Paper, ‘Tax policies and consultations (Spring 2021)’ on 23 March 2021.7

Source: BVRLA

E-Signature

Days Fleet are delighted to have launched our E-Signature service via our software suppliers Jaama and their chosen partner, Signable.

The last 12 months has changed the way that we work in many ways and something as simple as getting a signature on a document was proving challenging due to many of our clients working from home.   We are now we are able to offer our clients a quick, simple and most importantly a secure way of signing documents without the need for any additional software or printers.

You may already have received some documents for signing in this way so any comments you have on the service would be gratefully received via [email protected]

Focus on… Flexi Hire

Days Fleet launched our short term vehicle solution ‘Flexi Hire’ in 2008.  It was originally developed to assist clients whose vehicles were off the road and who needed a replacement vehicle.  It has since grown into a full mobility solution for our clients and can be utilised for any period from 1  day to 12 months.

As an existing client of Days Fleet you have full access to this service which is run by a dedicated in house team.  We can supply all sizes of cars, commercial and specialist vehicles.  Booking requests can be made via telephone, email and on our online portal via our website which also offers a dashboard and full reporting.    We have set daily and month or more rates and can offer bespoke rates and guarantee a specific make and model on ‘3 month +’ bookings.   Our Flexi Hire team use a panel of suppliers that operate across the UK and we also hold our own pool of stock to ensure that vehicles can be delivered to our clients as quickly as possible.

If you would like to discuss Flexi Hire please call Kate John on 0345 184 9337 / [email protected]

DriverLine – Reminder

DriverLine – Reminder

If your vehicle’s maintenance is managed by Days Fleet, all work and events surrounding the vehicle must be booked through our DriverLine on 0345 296 4423 – a 24/7 number that provides access to multiple services.

When a service or repair is required on your vehicle all you need to do is call DriverLine and we will make the necessary arrangements for your vehicle to be booked into an approved service centre.

Any bookings made outside of DriverLine i.e. booked directly with a dealership or garage may not be authorised and could result in significant delays in getting the vehicle back on the road. 

Meet the Team

Meet Gareth Davies – Client Support Supervisor.

Gareth heads up our Client Support team who work closely with our clients and has been with Days Fleet for 9 years.

  1. What does the Client Support Team do?
    Client Support provides the first point of contact for all our clients.  We produce vehicle quotations, process client’s orders and raise all contractual documents.   We also answer any queries that our Clients may have or point them in the right direction.   We are a team of 5 assisting our team of 9 Business Development Managers.
  2. What do you enjoy most about your role with Days Fleet?
    No day is the same which makes it interesting.  The feeling of satisfaction knowing our clients are happy makes the role so much more fulfilling.
  3. What has been the most challenging part of working from home during the last year?
    I really miss the office environment that we used to have and the banter and interaction with colleagues – it’s not quite the same via Teams!  
  4. What would you like to achieve in 2021?
    I’d like to continue to assist the other members of Client Support with their understanding of the role as some are relatively new to the business.  On a personal level, I’m trying to eat healthier and run at least 5k three times a week.  I’m doing pretty well so far so hopefully, it continues.
  5. What’s the first thing you’d like to do when restrictions are lifted?
    As a massive Swansea City fan, I can’t wait to be able to meet up with my mates and enjoy watching live football again.  

Behind the Wheel – Peugeot e-2008

We recently had the opportunity to get behind the wheel of Peugeot’s new 2008 fully electric vehicle.

Our Logistics Manager Mark Jenkins was very impressed, having used the vehicle for a few days: “I really enjoyed driving the vehicle. The electric range was more than ample for a few days commute to work and it was a very comfortable driving experience while also being environmentally-friendly.”