The Kinetic Brief: August 2026
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ZEV targets, EV tax changes, and a new home for the team, this month's fleet news in one place.
The Kinetic Brief
Quick insights that keep your fleet plans moving.
This Month's Headlines
Intro
Welcome to this month's edition of The Kinetic Brief. August has brought plenty to talk about, from new tax rules affecting electric vehicles to a proper new home for the team here at Kinetic. As always, our goal is to keep things short, clear and helpful so you can stay ahead of what matters in the fleet and leasing world.
1. Electric van uptake still falling well short of ZEV mandate
The latest figures show electric van registrations running at less than half the level needed to hit the government's 24% ZEV mandate target for this year. For fleets weighing up when to make the switch, it's a reminder that supply, choice, and incentives in the van market are still catching up to where cars already are. If you're planning van replacements over the next year, it's worth talking through timing with us rather than waiting for the market to settle on its own.
2. EVs now caught by the "expensive car supplement"
Since losing their VED exemption in April 2025, electric vehicles are now subject to the same rules as everything else, and any car with a list price over £50,000 attracts the expensive car supplement on top of standard VED. That extra charge rises from £425 to £440 a year from April 2026, payable annually for five years from the car's second year on the road. The number of vehicles falling into this band has jumped 42% in the past two years, as EV pricing and premium petrol and diesel models both push past the threshold. Worth building into total cost calculations, particularly on any EV priced close to or above £50,000 list, like this month's Deal of the Month.
3. Salary sacrifice or Business Contract Hire, which is right for your business?
They can look like two versions of the same thing, but they answer different questions. Business Contract Hire is the business paying directly for a vehicle, the natural route for pool cars or role-specific vehicles. Salary sacrifice is the business arranging a vehicle that the employee pays for through their own gross salary, a low-cost benefit that's designed to be close to cost-neutral for the business once set up correctly. Plenty of businesses end up running both side by side. Get in touch if you want help working out which fits, or whether it's worth doing both.
Side by side
| Business Contract Hire | Salary Sacrifice | |
|---|---|---|
| Who it's for | The business, vehicles allocated to staff | Individual employees, opted in voluntarily |
| Who pays | The business, direct from company funds | The employee, deducted from gross salary |
| Cash flow impact on employer | Real cost, hits the P&L | Broadly cost-neutral once set up correctly |
| Tax treatment | Standard Benefit in Kind if there's private use | BIK too, calculated under HMRC's OpRA rules, with an exemption for low-emission vehicles that keeps EVs favourable |
| VAT | Business reclaims 50% of the finance element | Same 50% reclaim, since the employer is still the lessee |
| Eligibility | Business credit check only | Employee must stay above National Minimum Wage after the deduction, plus scheme rules |
| Employee choice | Usually allocated, little personal input | Employee typically picks from a scheme catalogue |
| Best fit | Pool cars, role-specific vehicles, a business-funded perk | Attracting and retaining staff with a low-cost benefit |
4. EV Deal of the Month: Skoda Enyaq 85 SportLine
This month's standout is the Skoda Enyaq 85 SportLine, 210kW, 77kWh usable battery. A genuine 359-mile WLTP range, sharp SportLine styling, and single-motor efficiency that makes it a smart, practical choice for business users who want range without the premium price tag.
Business Contract Hire from £353.77 + VAT per month - ENQUIRE NOW
Pricing is based on a 3 year Business Contract Hire agreement covering 10,000 miles per annum. Initial rental £2,122.62 + VAT followed by 35 subsequent monthly rentals of £353.77 + VAT. Processing fee of £207.50 + VAT. Other contract terms available. This offer is only available through Škoda Financial Services, and is for immediate delivery from stock.
5. Out of the Office: We've moved, welcome to Eskmills
Big news from us this month. Kinetic now has its own office at Eskmills Business Park in Musselburgh, having moved on from our old co-working space. It's a proper base for the business, and it means we can finally do things the old-fashioned way too. If you're ever passing, pop in for a coffee, and we're just as happy to come to you.
If you would like support building your fleet strategy, or you want to review your options around EVs, salary sacrifice or Business Contract Hire, we are here to help - call us on 0330 202 0973.
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