Customer: Established Limited Company that is VAT Registered.

Requirement(s): They run a fleet of 30 commercial vehicles for service engineers.

Problem: The company have traditionally bought all of their commercial vehicles for cash. Whilst they have been able to use their Annual Investment Allowance (AIA) to write down £25,000 worth of vehicles by 100% in year 1, the rest of the fleet is allocated to the Plant and Machinery Pool which is only written down by 18% per annum. The vehicles continue to be written down by 18% per annum even after disposal, which is far from tax efficient.

Solution: Yorkshire Fleet Management have worked closely with the customer to gradually switch their entire fleet of commercial vehicles to Finance Lease agreements. This has meant that the company are able to offset 100% of the monthly payments against taxable profits, and are now running their fleet in a far more tax efficient manner. The company have also benefitted from Yorkshire Fleet’s fleet terms of up to 45% discount on commercial vehicles.

Ongoing relationship: Yorkshire Fleet keep in regular contact with the customer through their dedicated account manager to ensure that all of their requirements are satisfied. Yorkshire Fleet will also contact them at set points approaching the renewal of each vehicle to arrange replacement vehicles.