The Association of Fleet Professionals (AFP) has published a six-point checklist to help fleet operators respond to changes announced in the 2026 Budget, highlighting the implications for vehicle taxation, electrification and long-term fleet planning.
The guidance follows what the AFP describes as a mixed Budget for the sector, with greater certainty around company car taxation offset by concerns about rising operating costs and the introduction of electric Vehicle Excise Duty (eVED).
A key recommendation is for fleet managers to review the extension of benefit-in-kind (BIK) tax tables to 2030–31, when the rate will increase by one percentage point to 10%.
The AFP believes the extended timetable provides greater certainty for company car policies and could strengthen the business case for electric vehicle salary sacrifice schemes.
Dale Eynon, AFP Government Affairs and Policy Lead, said: “Low taxation still plays a key part in enticing drivers into EVs, and this remains an attractive rate.”
However, the organisation warned that other Budget measures could create additional challenges for fleet operators.
Higher Approved Mileage Allowance Payment (AMAP) rates could encourage employees to use privately owned vehicles for business journeys, potentially increasing reliance on older, less environmentally friendly cars.
The AFP therefore recommends reviewing grey fleet policies and considering whether managed fleet alternatives could offer better financial and environmental outcomes.
Fleet managers are also advised to update their 2027–28 financial forecasts to reflect extensions to fuel duty and heavy goods vehicle Vehicle Excise Duty arrangements.
Meanwhile, confirmation of the UK’s adoption of Euro 7 emissions standards means operators should reassess vehicle replacement cycles, manufacturer availability and the future viability of plug-in hybrid electric vehicles.
Preparing for the planned introduction of eVED in 2028 is another priority, particularly around mileage recording, telematics integration and odometer verification.
“The Budget document shows no changes to the latest VED proposals, which is disappointing given the AFP has raised several key issues,” Eynon said.
The checklist concludes by recommending that fleets compare the total cost of ownership of plug-in hybrids and battery electric vehicles, taking account of future taxation and emissions requirements.
The AFP also welcomed proposals for lower-cost, lower-power EV charging, although further details are awaited.
Overall, the association is encouraging fleet operators to use the additional tax certainty to review procurement, driver policies and electrification strategies while preparing for regulatory and cost changes over the coming years.
