The BVRLA will be publishing Coronavirus updates containing the latest advice to support members as new information and guidance emerges in relation to Covid-19. Due to the fast pace of information being issued by Government, members are advised to regularly check the latest information published online. Links can be found below.
Keeping updated
WhatsApp: The Government has launched a Coronavirus Information Service on WhatsApp. Add 07860 064422 in your phone contacts and message the word ‘hi’ in a WhatsApp message to get started.
Online: The Government has launched a Coronavirus Business Support website to help keep businesses updated. Other useful information is available via: Coronavirus (COVID-19): UK government response. Devolved administrations have also published information in Scotland, Wales and Northern Ireland.
Email: You can also subscribe to receive Covid-19 email alerts directly from Government. In addition to information published on this web page, members will be sent a dedicated Covid-19 Bulletin containing regular updates from the BVRLA.
Latest Covid-19 bulletin
Read previous Covid-19 Bulletins here
3 April 2020
Government letter supports essential status of vehicle rental
The Department for Transport (DfT) has thanked the vehicle rental sector for supporting essential services and provided a letter confirming that the industry should carry on working to ‘the greatest extent possible’.
In a letter to the BVRLA, DfT Co-Director Ben Rimmington says:
Vehicle rental services were expressly excluded from the list of retail premises ordered to close on 23 March since they supply vehicles that are essential to the continuation of many essential services and basic economic activity. All travel related to the continuation of business of vehicle rental services such as delivery of vehicles or spare parts, and all necessary travel by vehicle rental services staff to their place of work should therefore be considered ‘essential travel’ in the context of current restrictions. That is of course with the important proviso that all staff should work at home if this is at all possible, and that Public Health England guidelines on social distancing should be observed.
We will communicate this to the National Police Chiefs Council to ensure it is shared with all police forces in the context of their important work to enforce the new restrictions on movement. I would be very happy for you to share this letter with your members, and for them to use it as evidence of the government position on this point in the event of any misunderstandings.
The BVRLA is also speaking to the DfT to try and obtain greater clarity about the vehicle leasing sector’s ability to continue with vehicle movements. For the latest information, see the FAQs on the COVID-19 advice pages.
Update on support for vehicle rental companies
The Local Government Association (LGA) has produced advice for local authorities, highlighting the specific business sectors that should be included within the Business Rates Relief Scheme.
With the support of The Tourism Alliance, the BVRLA has asked the LGA to include ‘Vehicle Rental Services’ within this list, which should encourage local authorities to incorporate these businesses into their schemes.
When applied by local authorities, this scheme excludes vehicle rental branches from paying business rates during the 2020-21 tax year.
The BVRLA has received reports that some local authorities have pushed back against claims from vehicle rental operators. If this occurs, please refer them to the LGA website.
Vehicle rental companies can also claim a cash grant of up to £25,000 for each branch through the government’s cash grant for retail, hospitality and leisure businesses.
FCA announcement expected on fee deferral
The BVRLA has been speaking to the Financial Conduct Authority (FCA) about the annual fees for regulated businesses. The FCA recognises that cashflow is tight for many smaller regulated firms and has indicated that it will be making an announcement soon. This could potentially see fee payments staggered or deferred over the next few months. The BVRLA will update members as soon as any announcement is made.
Chancellor revamps emergency loan scheme
The government has made changes to its emergency loan scheme to make it easier for firms to access loans during the COVID-19 lockdown.
The revamp came after the Treasury reported that it had received more than 130,000 loan enquiries from firms and approved more than £90m in loans to nearly 1,000 firms.
The key changes to the Coronavirus Business Interruption Loan Scheme (CBILS), which provides loans of up to £5m for businesses with an annual turnover of up to £45m, are:
- The loans will no longer be restricted to companies that have been refused a loan on commercial terms
- Banks will be banned from asking company owners to guarantee loans with their own savings or property when borrowing up to £250,000
The Government has also introduced a new Coronavirus Large Business Interruption Loan Scheme (CLBILS), which will offer government-backed loans of up to £25m to firms with revenues of between £45m and £500m.
The British Business Bank operates the two schemes through its accredited lenders, which includes a range of asset finance providers.
The government has not capped the interest rates that can be charged on the loans, which cannot be used to assist with existing obligations.
More information on these and other support packages is available on the government’s Coronavirus Financial Support website.
Dart Charge – Electronic Solution
Members who are struggling to access their post can sign up to receive electronic penalty charge notices for the Dart Charge. If you would like to receive a spreadsheet of penalties that you have been issued, please email amanda@bvrla.co.uk with your registered keeper details.
Keeping informed
The Government has updated the guidance on businesses that must remain closed, clarifying that vehicle rental services are exempt. The Cabinet Office has confirmed that car, van, minibus and truck rental are all exempt where members are working with essential workers, goods and services.
Social distancing measures have been introduced and members should be mindful of protecting staff and customers so all government advice must be followed, including keeping a safe distance of being at least 2m away from others.
Business closures & restrictions on movement
2 April 2020
The Department for Transport has thanked the vehicle rental sector for supporting essential services and provided a letter confirming that the industry should carry on working to ‘the greatest extent possible’.
Measures introduced on 23 March
The Prime Minister has announced that UK citizens must stay at home and only leave their home for the following reasons:
- shopping for basic necessities, as infrequently as possible
- one form of exercise a day - for example a run, walk, or cycle - alone or with members of your household;
- any medical need, to provide care or to help a vulnerable person; and
- travelling to and from work, but only where this is ‘absolutely necessary’ and cannot be done from home. All workers must work from home unless it is impossible for them to do so.
Full guidance on staying at home has been published on the Gov.UK website.
The Government has published guidance on business closure confirming that all retail outlets selling non-essential goods must close immediately to help stop the spread of the coronavirus. The Cabinet Office has confirmed that car, van, minibus and truck rental are all exempt where members are working with essential workers, goods and services.
What is a 'critical' or ‘key worker’?
Those who work in health and social care and in other key sectors critical to the Covid-19 response as outlined in a list published by the Government.
Transport falls under this list and includes those who will keep the air, water, road and rail passenger and freight transport modes operating during the COVID-19 response, including those working on transport systems through which supply chains pass.
Safe distancing
When customers are in branch, members must ensure a 2m distance between customers and staff at all times. This advice should also be observed where possible when delivering and collecting vehicles.
Enforcing business closures
The Government has also published plans on enforcing the closure requirements that will see fines issued to those flouting the rules.
Financial business support
Full details regarding the support for businesses is available on the Government website. Some of the key highlights are:
Employee support
The Government has introduced a temporary Coronavirus Job Retention Scheme, open to all UK employers for at least three months starting from 1 March 2020. The scheme is designed to support employers whose operations have been severely affected by Covid-19.
In addition, a Self-employment Income Support Scheme has been introduced to support self-employed individuals, including members of partnerships, whose income has been negatively impacted by Covid-19. Self-employed people who have set themselves up as a Limited Company are not eligible for this relief.
The Government has published new guidance on business support grant funding settings out details of eligibility and delivery of the Small Business Grants Fund (SBGF) and Retail, Hospitality and Leisure Grant Fund (RHLGF).
VAT deferment
Cash flow support via the tax system. Deferring next quarter of VAT payments. No business will pay VAT from now until the end of June. The payments will not be due until the end of the financial year. If you pay by Direct Debit you should cancel this with your bank. You should do so in sufficient time so that HMRC does not attempt to automatically collect on receipt of their VAT return.
Business rates: expanded retail discount
- The Government has confirmed that car rental companies in England will benefit from a business rate holiday for retail, hospitality and leisure businesses for the 2020 to 2021 tax year.
- The recently announced initiative is designed to help support businesses managing the impact of the Covid-19 pandemic.
- The guidance which has been published for local authorities confirms that where the premises are wholly or mainly being used for the purposes of car rental, the business rates holiday is available.
- Organisations can apply to the local authority if their branch is based in, and pays business rates to, an English local authority, regardless of where the head office is located.
- Any enquiries on eligibility for, or provision of, the reliefs should be directed to your relevant local authority.
Business rates and cash grants
Businesses in England, Scotland, Wales and Northern Ireland can obtain the following business rates relief and support:
England
- Expanding the 100% business rates holiday for the next 12 months to cover all retail, hospitality and leisure businesses in England - not just those up to £51k Rateable Value.
- Providing a £25,000 cash grant to retail, hospitality and leisure businesses in smaller premises, with a Rateable Value below £51k.
- Increasing the proposed £3,000 cash grant to 700,000 small businesses (those eligible for Small Business Rate Relief) to a £10,000 cash grant. We think this will also apply for those eligible for rural rates relief.
Scotland
- 12 months 100% relief rates holiday for businesses in hospitality, leisure and retail. Grants will also available for Scottish companies in this sector
- Providing a £25,000 grant for businesses in hospitality, leisure and retail with a rateable value between £18,000 and £51,000.
- Small firms receiving the small business bonus or rural relief will be eligible for a £10,000 grant. Businesses will be also be able to request to defer all payment.
- All non-domestic properties will get 1.6% relief, reversing the poundage change.
Northern Ireland
- 3 months rates holiday for all businesses, which effectively means a further 25% discount off your bill
- The issuing of rates bills will be deferred from April until June
- Small firms who are eligible for the Small Business Rate Relief Scheme will receive a £10,000 grant
- Providing a £25,000 grant to companies in the hospitality, tourism and retail sectors with a rateable value from £15,000 to £51,000.
Wales
- 12 months rates relief for businesses in retail, leisure and hospitality
- £25,000 grant for retail, leisure and hospitality businesses with a rateable value of between £12,001 and £51,000
- Shops leisure and hospitality businesses with a rateable value of £51,000 or less will receive 100% business rates relief, administered through their local authority
- Businesses should contact their local authority for more guidance and to apply. The Government has issued the following guidance on the operation and delivery of the support.
More details can be found here:
Scottish local authority details
Other useful links and numbers
- Financial support is available from the British Business Bank.
- The Bank of England have also announced a comprehensive package of measures to help UK businesses and households bridge across the economic disruption that is likely to be associated with Covid-19. Interest rates have been reduced from 0.75% to 0.25% and additional funding will be available for banks to increase lending, especially to SMEs.
- A number of private lenders are also making funds available to small businesses impacted by Covid-19, including £2 billion from Lloyds Banking Group and £5 billion from NatWest
- HMRC has launched a dedicated tax helpline to help businesses concerned about paying their tax due to coronavirus (COVID-19). Find all the information here. The number is 0800 0159 559.
Companies House has produced guidance for companies who have been affected by Covid-19) and need more time to file their financial accounts. Find all the information here.
Operational advice
Company car tax
There is no reduction in company car tax payable if somebody is not able to use their car for any length of time, the only time there is a reduction is if the car is unavailable to the employee.
Further information is available in HMRC Guidance.
Is vehicle rental classed as a key sector for the Covid-19 response?
Only vehicle rental staff that can prove that they play an essential role in supplying mobility to NHS, social care and other critical services (as set out in the link above), should assume that they also qualify as being able to use the emergency educational provision provided by schools.
Where functions can be carried out at home, they should, be in line with government’s advice to invoke social distancing and minimise contact with others.
Vehicle taxing
The Department for Transport has announced that from 30 March 2020, all cars, vans and motorcycles which usually would require a MOT test will be exempt from needing a test. While the exemption is in place, vehicles can be taxed as normal. You can tax online at www.gov.uk/vehicletax , or call 0300 1234 321 or at the Post Office. Further details can be found on the Government website.
HGV vehicle testing
The Driver and Vehicle Standards Agency has decided to suspend heavy vehicle testing all Heavy Goods Vehicles (HGV), trailers and Public Service Vehicles (PSV) for up to 3 months.
From 20 March, all HGVs, trailers and PSVs with an annual test due to expire in a particular month will be issued with a 3-month certificate of exemption (CTE) until further notice.
Paper certificates will not be re-issued for HGVs, trailers and PSVs but we will amend the digital record so that vehicles can continue to operate.
Members will still need to keep their HGVs, trailers and PSVs maintained in a roadworthy condition and operate within the terms of Operators’ licence conditions.
Six-month MOT exemption introduced
Vehicle owners will be granted a 6-month exemption from MOT testing, enabling them to continue to travel to work where this absolutely cannot be done from home, or shop for necessities.
All cars, vans and motorcycles which usually would require an MOT test will be exempted from needing a test from 30 March 2020. This temporary legislation will be in place for 12 months.
Vehicles must be kept in a roadworthy condition, and garages will remain open for essential repair work. Drivers can be prosecuted if driving unsafe vehicles and should follow advice on keeping a vehicle in a good condition.
If you cannot get an MOT that’s due because you’re in self-isolation, the Department for Transport is working with insurers and the police to ensure people are not unfairly penalised for things out of their control.
Three-month driving test suspension
All practical driving tests and annual testing for lorries, buses and coaches have been suspended for up to three months from 25 March.
HGV - O-licence maintenance inspections
The Office of the Traffic Commissioners has confirmed a more flexible approach to adding and removing vehicles from operator licences and the ability for operators to maintain their regular inspection programmes. The latest advice is on their website.
Cleaning vehicles
Where a vehicle is returned and you are advised that someone who has been in the vehicle may have COVID-19 or the customer advises you they no longer need the vehicle as they are self-isolating then you will need to consider how to conduct a thorough clean of the vehicle before it is rented again and if possible a period of non-rental where it can be left with windows open etc.
When a vehicle is returned, additional cleaning should take place between rentals and if possible, allow a gap of 72 hours until the next rental, to allow any bacteria to potentially dissipate.
There is more advice on cleaning on the Government website.
Travel advice
Members are advised to check the latest travel advice from the Foreign and Commonwealth Office before allowing a vehicle to go abroad.
The Government has published guidance for British people travelling and living overseas during the coronavirus (COVID-19) pandemic: Travel advice: coronavirus (COVID-19)
Penalty charge notices
As ever with penalties and parking charges, there is variation depending on who has issued the notice. The following information summarises the current state of play and will be updated as and when new information is received.
Dart Charge – It has been confirmed that late representations will be acceptable if offices are closed and are piloting an electronic solution, further details will be available once the pilot is completed.
Transport for London – The congestion charge, low emission zone and the ultra-low emission zone have now been suspended. You may still receive penalties for week commencing 23 March 2020. If you would like a spreadsheet of the penalties issued to you in the last two weeks please email amanda@bvrla.co.uk with your registered keeper details and an email address for the file to be sent to. This information will be sent to Transport for London.
London Councils – London Councils have advised the boroughs in London to take a flexible approach to enforcement during these difficult times.
Private parking – The BVRLA is working with the British Parking Association on a communication to their members encouraging electronic communication and a flexible approach to enforcement.
Business insurance
It is recommended that members check what their business insurance coverage is with their insurer or broker. The Association of British Insurers state that:
“Standard commercial insurance policies – the type the vast majority of businesses purchase – provide cover against a wide range of day to day risks including damage caused by fire, flood, theft and accidents involving employees.
Further information is available on the Association of British Insurers website.
Beware of scams and frauds
The fraud threat posed during emergency situations is higher than at other times.
The Cabinet Office has formed a COVID-19 Fraud Response Team to assist the government with its counter fraud response. Requests for assistance should be emailed to: covid19-counter-fraud@cabinetoffice.gov.uk
Any suspected SCAMS or fraudulent activity should also be reported it to ACTION FRAUD.
Only a very small minority of businesses choose to buy any form of cover that includes local closure due to an infectious disease.”
Advice for businesses and employers
The Government has published Covid:19 Guidance for employees, employers and businesses and has launched a dedicated Covid-19 Business Support Helpline for businesses to speak directly to an advisor. The number to call is 0300 456 3565.
Protection from eviction for commercial tenants
Commercial tenants who cannot pay their rent because of COVID-19 will be protected from eviction. Further details are now available.
Three-month extension to file business accounts
The Government has confirmed that from 25 March, businesses can apply for a 3-month extension to file accounts with Companies House. This joint initiative between the government and Companies House will enable businesses to prioritise managing the impact of the Covid-19 pandemic.
As part of the agreed measures, while companies will still have to apply for the 3-month extension to be granted, those citing issues around COVID-19 will be automatically and immediately granted an extension. Applications can be made through a fast-tracked online system which will take just 15 minutes to complete.
Tax advice from government
HMRC has launched a dedicated tax helpline to help businesses concerned about paying their tax due to coronavirus. Find all the information here. The helpline number has changed to 08000 241222. Opening hours are from 8am to 4pm Monday to Friday. Calls to the old helpline number will be redirected automatically.
Health & Safety
- Guidance on advice to provide to staff including: how to help prevent spread of COVID-19; what to do if someone suspected or confirmed to have COVID-19 has been in a workplace setting; advice to give to individuals who have travelled to specific areas; and advice for the certification of absence from work resulting from COVID19
- ACAS has published information for employees and employers, including information on simple steps to help protect the health and safety of staff, sick pay and absence from work
Businesses trading internationally
Department for International Trade has published advice for UK businesses that export or deliver goods and services abroad and have been impacted by the spread of COVID-19.
Small businesses
The Federation of Small Businesses (FSB) has also published some useful information for businesses managing their response to the Covid-19 pandemic.
BVRLA requests support for sector
BVRLA Chief Executive Gerry Keaney wrote to the Chancellor on 18 March 2020 asking for business and regulatory support for the fleet sector, making clear the vital role that the vehicle rental sector will play in maintaining the essential movement of people, goods and services as the Covid-19 situation evolves.
In the letter, the government is asked to provide:
Business support
- Around 50% of most rental operator transactions are for leisure purposes (i.e. not for business), and most of this business is generated via airports, ports and other tourist locations. Can you ensure the vehicle rental sector is also included within your definition of the ‘leisure’ industry so that SME vehicle rental companies can obtain grants where their rateable value is between £15,000 and below £51,000.
- Abolish the payment of business rates for all companies until it is clear the economic impact of the outbreak is beginning to decrease.
- Ensure, in legislation, that banks are not permitted to foreclose on rental, leasing or car club businesses during the crisis and until this legislation is abolished.
- Provide all businesses with at least three-months relief from paying VAT or employer’s National Insurance.
- The government should guarantee a significant percentage of the salary of workers who are at serious risk of redundancy.
- Cut VAT on goods and services, to stimulate demand and consumer spending, especially when the crisis is over.
- Require HMRC’s default position to be the offer of a payment plan as part of the Time to Pay Scheme. Current guidance only states that HMRC “may” offer a plan.
- We would echo the CBI’s call for “emergency relief for SMEs if the total cost of sick pay becomes unsustainable” to help maintain their cash flow.
Operational and regulatory support
- Ensure any planned business or transport closures being considered do not include vehicle rental branches. We have already seen rental branches exempted from such closures in France, Austria and Spain, due to their essential role in providing mobility.
- Penalty charge notices. With most staff now working remotely, people must be exempted or given more time to provide driver details and pay penalty charge notices and parking fines, due to:
-
- Posted fines and charges sitting unopened in empty offices
- Vehicles being stranded due to COVID-19 related closures or illness
- We would also request a temporary relaxation of the strict requirements for MOTs and commercial vehicle periodic maintenance inspections as many fleets are finding that test centres, authorised testing facilities (ATFs) and workshops are closed or unavailable.
- Require local authorities to follow London’s lead in relaxing rules on overnight and weekend deliveries, enabling logistics companies to maintain the supply chain for food medicines and other essential goods.
How members can support us
Members should get in touch with the policy team on policy@bvrla.co.uk with:
- Suggestions for other business, regulatory or operational support they would like to see from government, agencies or local authorities
- Suggestions for information or guidance they need from vehicle manufacturers or other parts of the automotive supply chain
- Any legal or regulatory guidance they need
- Information on how the outbreak:
- Is impacting their business now
- Is likely to impact over the next 4-8 weeks
BVRLA working practices during pandemic
The BVRLA remains very much open for business and has taken steps to adapt working practices to minimise face-to-face engagement.
These processes will be reviewed at the end of April but until then, the following applies:
- There will be no face-to-face meetings of any kind either at the BVRLA office or off-site, including Committees, Working Groups or small business meetings.
- All meetings will be conducted using telephone and videoconferencing facilities such as Zoom and PowWowNow.
- All face-to-face BVRLA training courses will be rescheduled.
- BVRLA staff are setting up for remote working, where feasible and in accordance with government guidelines.
The association is assessing the planned schedule of BVRLA conferences and forums and will keep members updated in due course about any postponements or cancellations.
Fequently Asked Questions
Frequently Asked Questions for Rental Members
Q: I am a vehicle rental business. Can I still stay open for new and existing business?
A: Vehicle rental services have been given a specific exemption on the Government’s list of retail and leisure businesses that must close in order to reduce social contact. Government guidance on this can be found here. Whilst this is the case, vehicles should only be hired to essential workers or to support the delivery of services that are critical to the Coronavirus response. More guidance on which workers and services fall into this category can be found here. Members should also ensure that staff are protected as much as possible and that all social distancing measures are observed.
The Department for Transport has thanked the vehicle rental sector for supporting essential services and provided a letter confirming that the industry should carry on working to ‘the greatest extent possible’.
Q: What reasons for hire should I consider as ‘Essential’?
A: Examples of where the use of a rental vehicle may be considered as essential include the following:
- Health and social care staff including but not limited to frontline health and social care staff and those working as part of the health and social care supply chain,
- Education and childcare including social workers, teaching staff and education professionals,
- Key public services including those essential to the running of the justice system, religious staff, charity workers, those responsible for the management of the deceased and those providing public service broadcasting,
- Local and National Government including only those administrative occupations essential to the effective delivery of the Covid-19 response or essential public services i.e. the payment of benefits,
- Food and other necessary goods including those involved in the production, distribution, sale and delivery of food and other key foods such as hygienic and veterinary medicine,
- Public safety and national security,
- Transport,
- Utilities, communication and financial services.
Where customers are wishing to hire vehicles to facilitate house moves it must be imperative that the move takes place on the agreed date.
Q: Are customers entitled to a refund if their rental is cancelled due to Covid-19 related restrictions?
A: You should refer to your cancellation policy within the terms and conditions agreed to by the customer. It remains a commercial decision whether any penalty for cancellation is implemented. Many members are offering to postpone the rental to a later date or to credit the customer account for a future rental. Members should keep in mind that good levels of customer service should be maintained during this time and that customers are likely to leave reviews/recommendations or book again based on how members react to the situation.
Q: Should we be taking any extra measures when cleaning rental vehicles?
A: All vehicles should be subject to additional deep cleaning once returned from any customer and before being hired to another. Members should consider introducing periods between rentals where the vehicle can be left for 72 hours with the windows open to allow any bacteria to dissipate, where possible. Government guidance on cleaning can be found here.
Q: How should we handle the collection of vehicles ready to be taken off hire and the delivery of new hires where they are deemed essential?
A: While the collection and distribution of vehicles remains permitted, this must be carried out in compliance with current Coronavirus / COVID-19 precautions. Travel for work purposes is permitted, but only where work cannot be carried out from home. Other than the businesses it has specified, the Government has not required any other businesses to close – indeed it has stated it is important for business to carry on.
The Department for Transport has thanked the vehicle rental sector for supporting essential services and provided a letter confirming that the industry should carry on working to ‘the greatest extent possible’.
In its social distancing guidance, the Government says that employers and employees should discuss their working arrangements. It recognises that certain jobs require people to travel to, from and for their work – which clearly applies to the collection and distribution of vehicles. The Government says that, if you cannot work from home, you can still travel for work purposes, provided you are not showing coronavirus symptoms and neither you nor any of your household are self-isolating. This is consistent with advice from the Chief Medical Officer.
In this situation, the Government says that employers should ensure that employees are able to follow Public Health England guidelines including, where possible, maintaining a two metre distance from others, and washing their hands with soap and water often for at least 20 seconds (or using hand sanitiser gel if soap and water is not available).
Best Practice
The following best practice has been produced by the FLA and BVRLA and is consistent with Government guidelines, on vehicle delivery and collection, it is recommended that BVRLA members and their agents:
- take a risk-based approach based on the level of human contact associated with the delivery and collection of vehicles, and
- seek the use of alternative vehicle storage arrangements where possible.
The following should be considered by members for vehicle collection and delivery:
Members and their agents should implement and communicate a clear policy which sets out rules designed to protect their staff when collecting vehicles. This should include:
- Doorstep social distancing – keeping at least two metres away from members of the public. Staff should be advised how this can be adhered to if the customer is required to sign to confirm the vehicle has been collected.
- Any required use of protective clothing such as gloves.
- Ensuring that there has been communication with the customer prior to the vehicle being collected advising of how the person delivering/collecting the vehicle will conduct themselves in a way that presents no risk, and understanding whether or not the customer has self-isolated because they have coronavirus symptoms. For example:
- The driver will call the customer to advise they have arrived rather than approach the door.
- Both the customer and the driver will be required to hand wash / sanitise.
- The driver will expect the customer to place the keys and all paperwork in the vehicle (preferably in an envelope) only when the driver has arrived.
- The customer should not be asked to sign anything, but it might be possible for a driver to record (on body worn cameras or a telephone) the consent of the customer to take the vehicle or to acknowledge any damage.
Customers should be encouraged to return vehicles at the end of hire where appropriate, but it should not mean they are required to drive long distances or use public transport.
As police around the country ramp-up their enforcement of the Government's travel lockdown and business closures, BVRLA has published a template letter that vehicle rental members can provide to staff that are travelling in order to support key workers and critical services.
The template can be used by any member that wants to provide supporting evidence for employees, confirming the reason for their travel. It should be provided to staff on company headed paper.
It is a draft and should be adapted to suit your circumstances. There is no provision currently within legislation for any letter or pass system and as such this document is for guidance only. You can download the draft template here.
Q: Should our staff continue to work from our office environment?
A: Where it is essential and they are unable to work from home, staff may continue to work from the office but in doing so must follow the social distancing guidance. Members may wish to think about additional PPE and cleaning equipment that they can provide to staff.
Q: Will Penalty Charge Notice issuers allow for a delay in response time due to staff being away from the office?
A: It is best to contact issuers individually if you have concerns that you may not be able to respond to PCNs in a timely manner. As ever with penalties and parking charges, there is variation depending on who has issued the notice. The following information summarises the current state of play and will be updated as and when new information is received.
Dart Charge – It has been confirmed that late representations will be acceptable if offices are closed and are piloting an electronic solution, further details will be available once the pilot is completed.
Transport for London – The congestion charge, low emission zone and the ultra-low emission zone have now been suspended. You may still receive penalties for week commencing 23 March 2020. If you would like a spreadsheet of the penalties issued to you in the last two weeks please email amanda@bvrla.co.uk with your registered keeper details and an email address for the file to be sent to. This information will be sent to Transport for London.
London Councils – London Councils have advised the boroughs in London to take a flexible approach to enforcement during these difficult times.
Private parking – The BVRLA is working with the British Parking Association on a communication to their members encouraging electronic communication and a flexible approach to enforcement.
Frequently Asked Questions for Leasing Members
Q: Can customers cancel their order of a vehicle if they can no longer afford the vehicle or no longer have a purpose for the vehicle due to Covid-19 related restrictions?
A: Customers may cancel their agreement in line with members’ cancellation policies which should be outlined in the business terms and conditions signed by the customer. Whether members implement any penalty that is part of their cancellation policy is a commercial decision.
Q: How should I deal with customers who have advised me that they can no longer afford their monthly payments due to income shock? Am I able to offer customers a payment holiday?
A: Leasing Brokers should refer the customer to the finance provider for clarity on their procedures during this time. Finance providers should follow their Income Shock and Forbearance procedures. Further information on this can be found in the BVRLA’s Factsheet.
Q: Should we be taking extra precautions with the collection and delivery of vehicles during this time?
A: While the collection and distribution of vehicles remains permitted, this must be carried out in compliance with current Coronavirus / COVID-19 precautions. Travel for work purposes is permitted, but only where work cannot be carried out from home. Other than the businesses it has specified, the Government has not required any other businesses to close – indeed it has stated it is important for business to carry on.
In its social distancing guidance, the Government says that employers and employees should discuss their working arrangements. It recognises that certain jobs require people to travel to, from and for their work – which clearly applies to the collection and distribution of vehicles. The Government says that, if you cannot work from home, you can still travel for work purposes, provided you are not showing coronavirus symptoms and neither you nor any of your household are self-isolating. This is consistent with advice from the Chief Medical Officer.
In this situation, the Government says that employers should ensure that employees are able to follow Public Health England guidelines including, where possible, maintaining a two metre distance from others, and washing their hands with soap and water often for at least 20 seconds (or using hand sanitiser gel if soap and water is not available).
Best Practice
The following best practice has been produced by the FLA and BVRLA and is consistent with Government guidelines, on vehicle delivery and collection, it is recommended that BVRLA members and their agents:
- take a risk-based approach based on the level of human contact associated with the delivery and collection of vehicles, and
- seek the use of alternative vehicle storage arrangements where possible.
The following should be considered by members for vehicle collection and delivery:
Members and their agents should implement and communicate a clear policy which sets out rules designed to protect their staff when collecting vehicles. This should include:
- Doorstep social distancing – keeping at least two metres away from members of the public. Staff should be advised how this can be adhered to if the customer is required to sign to confirm the vehicle has been collected.
- Any required use of protective clothing such as gloves.
- Ensuring that there has been communication with the customer prior to the vehicle being collected advising of how the person delivering/collecting the vehicle will conduct themselves in a way that presents no risk, and understanding whether or not the customer has self-isolated because they have coronavirus symptoms. For example:
- The driver will call the customer to advise they have arrived rather than approach the door.
- Both the customer and the driver will be required to hand wash / sanitise.
- The driver will expect the customer to place the keys and all paperwork in the vehicle (preferably in an envelope) only when the driver has arrived.
- The customer should not be asked to sign anything, but it might be possible for a driver to record (on body worn cameras or a telephone) the consent of the customer to take the vehicle or to acknowledge any damage.
As police around the country ramp-up their enforcement of the Government's travel lockdown and business closures, BVRLA has published a template letter that vehicle rental members can provide to staff that are travelling in order to support key workers and critical services.
The template can be used by any member that wants to provide supporting evidence for employees, confirming the reason for their travel. It should be provided to staff on company headed paper.
It is a draft and should be adapted to suit your circumstances. There is no provision currently within legislation for any letter or pass system and as such this document is for guidance only. You can download the draft template here.
Q: We are unable to collect vehicles from customers at the end of their lease contracts. What are our options?
A: As most vehicle collections have now stopped, BVRLA members are giving their customers a range of options:
- Return the car to a suitable location
- Hold on to the car but stop using it. Lease payments are frozen, and the car is typically insured by the lessor (personal contract) or lessee (business contract).
- A formal extension with a new contract but make sure you are clear what happens with the mileage allowance
- An informal extension, again make sure you are clear what your policy is on the mileage allowance
In all cases, the priority is to contact customers as soon as possible and provide guidance on your website.
Q: Should our staff continue to work from our office environment?
A: Where it is essential and they are unable to work from home, staff may continue to work from the office but in doing so must follow the social distancing guidance. Members may wish to think about additional PPE and cleaning equipment that they can provide to staff.
For example, it is permissible for staff to visit the office to deal with post, particularly to deal with penalties, speeding fines and parking charge notices which might be posted.
Q: What will happen if our business is due an inspection as part of the BVRLA governance programme?
A: The BVRLA has worked with its approved inspection partners CCAS to ensure that remote inspections will still be carried out during this time. You will be contacted prior to your arranged inspection date with clarification on how this will take place.
Q: Will Penalty Charge Notice issuers allow for a delay in response time due to staff being away from the office?
A: It is best to contact issuers individually if you have concerns that you may not be able to respond to PCNs in a timely manner. As ever with penalties and parking charges, there is variation depending on who has issued the notice. The following information summarises the current state of play and will be updated as and when new information is received.
Dart Charge – It has been confirmed that late representations will be acceptable if offices are closed and are piloting an electronic solution, further details will be available once the pilot is completed.
Transport for London – The congestion charge, low emission zone and the ultra-low emission zone have now been suspended. You may still receive penalties for week commencing 23 March 2020. If you would like a spreadsheet of the penalties issued to you in the last two weeks please email amanda@bvrla.co.uk with your registered keeper details and an email address for the file to be sent to. This information will be sent to Transport for London.
London Councils – London Councils have advised the boroughs in London to take a flexible approach to enforcement during these difficult times.
Private parking – The BVRLA is working with the British Parking Association on a communication to their members encouraging electronic communication and a flexible approach to enforcement.
18 March 2020
BVRLA Chief Executive Gerry Keaney wrote to the Chancellor on 18 March 2020 asking for business and regulatory support for the fleet sector.
The letter makes clear the vital role that the vehicle rental sector will play in maintaining the essential movement of people, goods and services as the Covid-19 situation evolves.
In the letter, the government is asked to provide:
Business support
- Around 50% of most rental operator transactions are for leisure purposes (i.e. not for business), and most of this business is generated via airports, ports and other tourist locations. Can you ensure the vehicle rental sector is also included within your definition of the ‘leisure’ industry so that SME vehicle rental companies can obtain grants where their rateable value is between £15,000 and below £51,000.
- Abolish the payment of business rates for all companies until it is clear the economic impact of the outbreak is beginning to decrease.
- Ensure, in legislation, that banks are not permitted to foreclose on rental, leasing or car club businesses during the crisis and until this legislation is abolished.
- Provide all businesses with at least three-months relief from paying VAT or employer’s National Insurance.
- The government should guarantee a significant percentage of the salary of workers who are at serious risk of redundancy.
- Cut VAT on goods and services, to stimulate demand and consumer spending, especially when the crisis is over.
- Require HMRC’s default position to be the offer of a payment plan as part of the Time to Pay Scheme. Current guidance only states that HMRC “may” offer a plan.
- We would echo the CBI’s call for “emergency relief for SMEs if the total cost of sick pay becomes unsustainable” to help maintain their cash flow.
Operational and regulatory support
- Ensure any planned business or transport closures being considered do not include vehicle rental branches. We have already seen rental branches exempted from such closures in France, Austria and Spain, due to their essential role in providing mobility.
- Penalty charge notices. With most staff now working remotely, people must be exempted or given more time to provide driver details and pay penalty charge notices and parking fines, due to:
a) Posted fines and charges sitting unopened in empty offices
b) Vehicles being stranded due to COVID-19 related closures or illness - We would also request a temporary relaxation of the strict requirements for MOTs and commercial vehicle periodic maintenance inspections as many fleets are finding that test centres, authorised testing facilities (ATFs) and workshops are closed or unavailable.
- Require local authorities to follow London’s lead in relaxing rules on overnight and weekend deliveries, enabling logistics companies to maintain the supply chain for food medicines and other essential goods.
We have also created a FAQ section for consumers which can be found here
Keeping well
Coronavirus: What you need to know
Public Health England has published a Coronavirus: What you need to know Blog answering questions about Covid-19. The Blog is being updated regularly as the pandemic progresses.
The NHS has published general Advice for everyone on what you need to know to stay physically and mentally well.
Public Health England has published a poster for use by employers to provide guidance to staff.
The NHS shares 10 Tips to help if you are worried about Coronavirus.
Mental health charity, Mind has published some guidance in the wake of the Covid-19 pandemic. Heads Together also has a Workplace Well-being Hub.
