Fleet News

BIK tax friendly plan for Speedo and Kickers staff

PENTLAND, the firm behind brands including Speedo and Kickers, has agreed a multi-million pound deal to switch its 300-vehicle fleet from outright purchase to a tax-efficient structured personal leasing.

The firm considered a number of options before shifting away from outright purchase to the Alto scheme, run by Interleasing.

The leasing firm will buy the fleet from Pentland and then supply vehicles to employees under individual contracts.

Interleasing then also loans the employees the finance to buy their chosen car. Because ownership transfers to the employee, they will not be liable for benefit-in-kind tax. Pentland says the vast majority of drivers benefit because of the number of high mileage and prestige car drivers in its fleet.

Martin Goldstein, group purchasing manager at Pentland said: 'Our requirements were to save time and money for the business while not affecting the satisfaction levels of our company car drivers.

'Alto allowed us to remove vehicles from our balance sheet, protect the business from residual value risk, inject capital into the business and outsource day-to-day administration to Interleasing.'

Goldstein added that the beauty of the scheme was that drivers would not suffer disruption.

He added: 'They still have the same cars, they won't face year on year BIK tax increases and they have all the support they were used to with their company cars.'

Gordon Calder-Jones, Interleasing's head of Alto said: 'If Pentland had chosen a personal contract purchase agreement it would have had less control over the choice of vehicles that its employees were driving. Through Alto, Pentland is able to ensure the fleet is in line with its company image while avoiding the risk of costs escalating.'

Interleasing was the winner of the 2002 Fleet News 'Best Contract Hire Company' and 'Best Company Car Tax Initiative' awards.

Pentland owns a number of international sports, outdoor and fashion brands, including: Speedo, Ellesse, Kickers, Berghaus and Red or Dead. It also holds licences from other brand owners including a world-wide licence for Lacoste footwear and Ted Baker footwear.

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