Starting December 1, 2024, the UK government is introducing a series of new regulations that will affect business travel, fleet management, and the electric vehicle (EV) market. These updates, designed to improve environmental standards and road safety, will impact everything from fuel reimbursements to tachograph requirements and EV charging infrastructure. Here’s a breakdown of the most significant changes:
New Advisory Fuel Rates for Company Cars
HMRC has announced revised Advisory Fuel Rates (AFRs), impacting company car owners and drivers using vehicles for business purposes. Effective December 1, the following changes apply:
- Diesel cars over 2,000cc: The reimbursement rate drops from 18 pence per mile (ppm) to 17ppm.
- Diesel cars between 1,601cc and 2,000cc: The rate decreases from 14ppm to 13ppm.
- Diesel cars up to 1,600cc: The new rate falls from 12ppm to 11ppm.
In addition, the AFR for petrol-powered company cars has also seen a reduction across the board. Employers can classify hybrid vehicles as either petrol or diesel for reimbursement purposes, depending on their fuel type. However, these AFRs do not apply to vans, and VAT claims for fuel expenses will still require a receipt.
Stricter Tachograph Rules for HGVs
Truck drivers and fleet managers should prepare for new tachograph regulations set to take effect in 2024. From February 21, 2024, all newly registered in-scope vehicles will be required to have a full smart tachograph 2 or transitional smart tachograph 2 installed—regardless of the type of journeys they undertake.
For vehicles already in use, retrofitting will be mandatory by December 31, 2024, for those involved in international travel. This move is designed to enhance driving hours tracking, ensure better compliance with road safety standards, and improve the efficiency of freight transportation.
£10,000 Fines for Non-Compliant EV Chargers
The UK’s EV infrastructure is undergoing a major upgrade. As part of efforts to improve the reliability and accessibility of electric vehicle charging, new regulations have been introduced for EV charge points.
Operators of public chargers must now meet higher standards, with a focus on:
- Contactless payment options for chargers with a capacity of 8kW or more.
- A 99% reliability rate for all devices.
Failure to comply will result in hefty fines, up to £10,000. Adam Hall, director of energy services at Drax Electric Vehicles, emphasized the importance of bridging gaps in the infrastructure to boost confidence in the EV market and support businesses transitioning to greener technologies.
The Zero Emission Vehicle Mandate
A landmark policy is also set to reshape the future of the automotive industry. The Zero Emission Vehicle (ZEV) mandate, which takes effect in 2024, will require car manufacturers to meet specific sales targets for electric vehicles:
- 22% of car sales and 10% of van sales must be fully electric by 2024.
- These targets will rise annually, reaching 80% of car sales and 100% of van sales by 2030 and 2035, respectively.
Manufacturers who fail to meet these targets will face fines of £15,000 per car and £9,000 per van for each unit falling short. This ambitious mandate is a key part of the UK’s plan to reduce carbon emissions and accelerate the transition to a cleaner, greener transport system.
As the UK steps up its commitment to environmental sustainability and road safety, these regulatory changes are set to shape the future of the transport and energy sectors. Whether you’re an employer managing a fleet, a truck driver navigating new tachograph rules, or an EV operator looking to meet charging standards, the time to act is now. These changes are not only necessary but are also an opportunity for businesses to stay ahead of the curve in an evolving landscape.
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