1.7. Tributación en la indemnización pecuniaria por reparación directa
1.7.1. Cómo se determina el tributo en indemnizaciones por reparación directa
The cost ofmaintenance to tracks on plant working on normal ground can be considered to be included with the repairs and renewals figure as calculated above. An exception to this would be where tracked plant is working on rock, for instance in a quarry, where track failure is more common. In this instance repairs and renewals should be 12 per cent of the capital cost per annum.
Tyre life is determined by the tyre size, the loading, the tyre pressure, the type of ground and the skill ofthe operator. Tyres can represent 15 per cent ofthe capital cost ofa wheeled loader and for this reason various techniques are available for prolonging tyre life. Filling the tyre with flexible foam means that tyre `pressure' is always correct and production losses due to punctures are removed. Fitting chains to tyres will prolong life, particularly when working on rock. Tyre life for normal and harsh operating conditions is as follows. The figure for harsh conditions should only be used when it is envisaged that the plant will be working continuously in a harsh environment.
Loaders: normal 2500 hours; harsh 1500 hours Trucks: normal 3000 hours; harsh 2000 hours.
Inflation
A plant rate is calculated at the time that plant is purchased. Ifno account were to be taken ofinflation then during the last year ofthe life ofthe plant the rate would be uncompetitively low. Rates are therefore reviewed on an annual basis and increases for inflation are added.
Example 3.1
Calculate the plant rate per hour for a 100 litre (5/3.5) concrete mixer based on the following information:
Data: Purchase price £1500
Interest rate 13.5%
Engine power 2.5 bhp
Gas oil £0.25 per litre
Life of mixer 10 years
Scrap value at end oflife nil
Hours worked per annum 1600
Working efficiency 90%
Solution: Depreciation: £1500/10 £150.00
Annual repayment on capital borrowed using the mortgage formula:
R P[(1 i)ni]/[(1 i)n 1]
R £1500[(1 0:135)100:135]/[(1 0:135)10 1] £282
Total repayment £282 10 £2820 Interest £2820 1500 £1320
Interest per annum: £1320/10 £132.00
Repairs and renewals: 10% of£1500 £150.00
Insurance: included as an overhead in the oncost portion ofprofit and oncost nil
£432.00
Divide by hours per annum: £432/1600 £0.27
Fuel: 2:5 bhp 0:2 0:5 litres/hour £0:16/litre £0.13
Oil and grease: 10% offuel £0.01
£0.41
Efficiency rating 90%: £0.41/0.9 £0.46
The rate for a 100 litre concrete mixer is £0.46 per hour.
Example 3.2
Calculate the plant rate per hour for a 114 bhp wheeled backhoe excavator based on the following:
Data: Purchase price £85 000
Interest rate 13.5%
Engine power 114 bhp
Gas oil £0.25 per litre
Life of excavator 7 years
Scrap value at end oflife £1000
Hours worked per annum 1400
Working efficiency 60%
Tyre cost £12 000 per set of8
Tyre life 2500 hours
Solution: Depreciation is cost less tyre and scrap values:
£85 000 1000 12 000 £72 000: divide by 7 £10 285.71
Annual repayment on capital borrowed using the mortgage formula:
R £85 000[(1 0:135)70:135]/[(1 0:135)7 1] £19 520
Total repayment £19 520 7 £136 640 Interest £136 640 85 000 £51 640
Interest per annum: £51 640/7 £7 377.00
Repairs and renewals (buckets, teeth, etc.):
10% of£85 000 ± 12 000 (tyres) £7 300.00
Insurance: none nil
£24 962.70
Divide by hours per annum: £24 962.71/1400 £17.83
Tyre depreciation: £12 000/2500 £4.80
Fuel, based on 25% at full power: 114 bhp 0:2 0:25 5:7 litres/hour 57 bhp 0:2 0:75 8:6 litres/hour
Total 14:3 litres/hour £0:25/litre £3.58
Oil and grease: 10% offuel £0.36
£26.57
The rate for a 114 bhp wheeled backhoe excavator to be used in calculating an excavation rate is £44.28 per hour.
Example 3.3
Calculate the plant rate per hour for an 80 bhp 5 m3truck based on the following information:
Data: Purchase price £35 000
Interest rate 13.5%
Engine power 80 bhp
Derv £0.50 per litre
Life of truck 5 years
Scrap value at end oflife £1000
Hours worked per annum 1800
Insurance and road fund licence £1200 per annum
Working efficiency 60%
Tyre cost £3 000 per set of6
Tyre life 3000 hours
Solution: Depreciation is cost less tyre and scrap values:
£35 000 1000 3000 £31 000: divide by 5 £6 200.00
Annual repayment on capital borrowed using the mortgage formula:
R £35 000[(1 0:135)50:135]/[(1 0:135)5 1] £10 073
Total repayment £10 073 5 £50 365 Interest £50 365 35 000 £15 365
Interest per annum: £15 365/5 £3 073.00
Repairs and renewals: 10% of£35 000 ± 3000 £3 200.00
Insurance and road fund licence £1 200.00
£13 673.00
Divide by hours per annum: £13 673/1800 £7.60
Tyre depreciation: £3000/3000 £1.00
Fuel, based on 75% at full power: 80 bhp 0:2 0:75 12 litres/hour 40 bhp 0:2 0:25 2 litres/hour
Total 14 litres/hour £0:50/litre £7.00
Oil and grease: 10% offuel £0.70
£16.30
Efficiency rating 60%: £12.91/0.6 £27.17
The rate for an 80 bhp 5 m3truck is £21.52 per hour.
Example 3.4
Using the plant described in Examples 3.2 and 3.3 and the information given below, calculate the
rate per m3 for machine excavation ofa trench 600 mm wide and the disposal ofsurplus
Data: Wheeled backhoe excavator:
600 mm wide, 400 litre (0.4 m3) bucket, 1 cycle per
30 seconds £44.28/hour
Operative £7.50/hour
Truck 5 m3:
average speed to tip 12 mph, tipping time 2 minutes £27.17/hour
Driver £7.00/hour
Normal ground: bulking rate 1.1
Solution: Time taken to excavate 5 m3ofbulked earth:
5 m3truck capacity, divided by 0.4 m3bucket capacity: 12.5 cycles
13 cycles of excavator to fill one truck, at 30 seconds per cycle: 6.5 minutes to fill one truck Truck cycle time (minutes):
Loading 6.5
Travelling 20.0 (4 miles at 12 mph)
Tipping 2.0
Cycle time 28.5
Number oftrucks required: 28:5/6:5 4:38 trucks
A choice is now available between having 5 trucks with the excavator working to capacity, or 4 trucks with the excavator standing idle for a short period.
Each option is now costed.
For 5 trucks the cost per hour is as follows:
Excavator and operative (£44.28 £7.50) £51.78
5 trucks and drivers: 5 (£27:17 £7:00) £170.85
Total cost £222.63
Output per hour (excavator): (60/6:5 min) 5 m3 46:154 m3 ofbulked earth
Therefore cost is £222:63/46:154 £4:82 per m3
For 4 trucks the cost per hour is as follows:
Excavator and operative £51.78
4 trucks and drivers: 4 £34:17 £103.68
Total cost £188.46
Output per hour (trucks): (60/28:5 min) 5 m3 4 trucks 42 m3 ofbulked earth
Therefore cost is £188:46/42 £3:49 per m3.
Therefore the operation with 4 trucks is more economic.
Thus the rate for excavating a trench 600 mm wide and disposing of excavated material is
£4:49 1:1 (bulking factor) £4:49 20% overheads and profit £5:47 per m3.
Summary
A small contractor whose capital is fully committed may rely solely on hired plant, but as a business grows and workload increases the contractor may decide on outright purchase ofspecific items ofplant for the business. Considerations will be:
* Availability ofcapital outlay
* Length oftime plant may be required * Expected rate ofutilization
* Proper storage requirements * Maintenance facilities.
If the contractor can afford the initial and running costs and can predict the utilization factor, then they might decide on plant ownership.
N.B. It may prove advantageous to hire specialized items ofplant (excavators, tower cranes, scaffolding etc.) for short periods and own the general types of plant (concrete mixers, dumpers etc.) for permanent usage.
The advantages of plant hire
* Contractor's capital is not locked up in expensive pieces ofequipment and cash flow is not
affected.
* Hiring costs can be paid monthly as the contractor is paid for work completed in interim
payments.
* Contractor does not pay for plant not required nor has any work for.
* Modern and suitable plant is readily available on hire from plant companies at a fixed
hourly, daily, weekly or monthly rate.
* Cost ofmaintenance, repairs and replacement is borne by the plant hire company. * In some instances the plant hire company will provide the experienced and skilled
operative, therefore the contractor does not have permanent operative's wages to pay.
* The contractor has no storage problems when plant is not being used as it is returned to
the hire company.
The disadvantages of plant hire
* Effective planning and programming of work schedules is required to minimize expensive
idle time on hired plant.
* A suitable machine may not always be available when required, especially at short notice. * The contractor still has to pay for the hire cost when work is aborted due to bad weather. * The plant operator does not work for the contractor full-time and so there is no incentive
to perform well.
* Plant may not be in good shape to undertake the work, constant breakdown will cause the
contractor costly delays.
* Hire rates depend on market forces, which fluctuate and can be a cause of loss to the
contractor ifthe hire cost escalates.
The advantages of buying plant
The contractor loses the following facilities when he or she hires an item of plant in lieu of outright purchasing:
* Ownership ofa purchased item ofplant is immediately transferred to the acquiring
company, which as a company asset can be used as security for finance.
* Outright purchase ofan item ofplant entitles the acquiring company to capital allowances
* Credit sale ± an arrangement whereby title to the item ofmachinery transfers on purchase
but the acquiring company works off the purchase price by installments. This is another good source oftax saving ifit can be negotiated.
Cost to own plant
Initial cost: Interest charges, fixed for short periods Running costs: Utilization
Rate ofdeterioration
Cost ofplant is high ifunder-utilized during economic life Frequent breakdown increases maintenance costs
Plant deterioration accelerated ifoverused with inadequate maintenance Obsolescence depends on technological advances
Contractors must ensure plant is economically utilized and does not fall into disuse before the end ofits economic life.
The disadvantages of buying plant and hiring plant
The contractor incurs the following additional costs in utilizing plant be it hired or owned: Cost of transport ± From plant depot to site, the extent ofthis cost depends on the distance from depot to site.
Cost of working base ± Iftower cranes are employed on site they require suitable concrete base or track to work on.
Cost of erection/dismantling ± Contractor incurs the cost ofhaving items ofplant (hoists, scaffolding, tower crane etc.) erected and dismantled.
Cost of operators ± Machine operators and associated labour such as banksmen, etc. are costs to be considered by the contractor.