Drivers must sign additional documentation, but continue to benefit from the hassle-free advantages of a company car without the benefit in kind tax liability. Chris Stalker, VELO's general manager, product development, said: 'This is a highly cost efficient alternative to the traditional company car scheme and can reduce fleet costs by 20 to 30%. For a fleet of 200 vehicles this could mean savings of £300,000 per annum.'
Employers have the option of either passing these savings on to drivers, or keeping staff in a cash neutral position, and the flexibility of PCCP means it is not necessary to switch all vehicles over to the programme for it to work. The potential savings are greatest for low business mileage fleets.