We’ve heard a lot about company cars from the Government in recent years. In Budget after Budget, Chancellors have raised Company Car Tax rates. And, last year, Philip Hammond changed the tax rules on the flexible benefit arrangements that around 650,000 employees use to fund their cars.
You’d be forgiven for thinking that the company car is on the way out. But you’d be wrong.
Company cars as a benefit
Flexible benefit arrangements – whether salary sacrifice or cash alternative schemes – remain an attractive and cost-effective way for many employees to get a new car. Corporate discounts allow them to drive a nicer car for less. Maintenance, insurance and other costs are all included in a simple, fixed monthly payment. There are no deposits, credit checks or hidden fees to worry about. And there are still tax savings to be made, especially if they choose a hybrid or electric car.
And offering company cars can bring big benefits to employers, too. It’s a great way to motivate your workforce and reward their efforts, as well as to attract the brightest new talent to your team. And, since company cars are new cars, they’re generally greener and more reliable than the ones your employees might otherwise drive. That can help you cut your organisation’s carbon footprint, while also being sure that your team can get where they need to go, when they need to get there.
Even better, company cars fit nicely alongside other employee benefits. Offering a wide and flexible array of benefits helps cater to your employees’ different needs. Some might want extra pension contributions, others might want childcare vouchers… and some might want a new car.
So, you shouldn’t be put off company cars by the Government’s recent changes – but you do need to make sure your policies are up-to-date.
Find out more
To learn more about alternatively-fuelled vehicles, read our Future of Fuel Report.
To find out how we can help you with your employee car scheme or your company fleet, please get in touch to request more information or to arrange a call.
Note: This article was first published on LinkedIn by Suzanne Phillips, National Fleet Consultant at Hitachi Capital Vehicle Solutions.