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Cash vs car? More like cash vs structured cash vs employee car ownership vs salary sacrifice car vs traditional company car. With a plethora of options available to UK businesses, finding the right car provision policy solution for both the business need and perk populations can be a difficult task. There’s no such thing as a one-size-fits-all approach.
For different employee populations there are key variables affecting the cost of provision, including the employee’s tax rate, business and private mileages, and whether the employee is ready to adopt an EV. With various solutions available, you could cater for all the different populations, but, crucially, you must understand how vehicle provision fits in with the wider business objectives.
First, you need to understand what the business wants to achieve with its car provision; is it used as a recruitment tool, for improved staff retention or greater cost control?
Considering how the fleet is affected by the business’ appetite to risk, changes to support CSR strategy and/or the business’ wider values/image, and the desire for increased simplicity and/or reduced administration, may help to narrow down your choices.
However, while you can achieve these through your car policy, it is difficult without employee buy-in.
Undertake a review of your fleet, keep an open mind to different solutions available and the potential of deploying multiple solutions across your policy aimed at different populations.
Finally, work with a partner independent of any one solution, to identify the best overall solution for your business and employees.
For more information, contact us: 0113 250 0060