Running a company car scheme keeps you in complete control of your transport resources. It allows you to:
Without a car scheme, drivers can choose their own car, and claim back expenses for business journeys. This leads to time-consuming claims processes, is generally more expensive and exposes the business to the risks of running grey fleet vehicles.
In addition, it can be very difficult to make sure these vehicles are fit for purpose. With a company car scheme, it's easier for you to comply with duty of care responsibilities, because cars are fully managed, serviced and maintained.
It's sometimes easy to forget the incredible value that a company car offers. Drivers are able to tap into enhanced employer discounts, which can be significant in the public sector.
Those who choose to leave the car scheme quickly realise they simply cannot afford to buy the same level of car. That's why so many drivers downsize when they have to buy a car on their own.
Remember, this example doesn't take account of any private user contributions, which will lower monthly payments even further. And when you consider that the company car is fully taxed, insured and serviced, it really does provide a deal for drivers.
The recent Finance Bill introduced important changes to the way Benefit in Kind (BIK) tax is calculated on company cars.
Where an employee does not have a cash option in lieu of a company car, nothing has changed.
The new rules apply when a cash allowance option is available in lieu of a company car. Now, when an employee takes the cash option, they will pay tax on either the cash allowance or the BIK value of the car, whichever is greatest.
If the BIK value of a car is £5000 and the cash option is £6000, the driver will be taxed on the £6000 cash option.
If the BIK value of the car is £6000 and the cash option is £5000, the driver will be taxed on the £6000 BIK value.
Different cash allowances, cars and changes in the employee tax rate would result in different effects, which is where we come in. We will work with you to review your arrangements and analyse these using our sophisticated financial modelling tools.
Working out your tax has never been easier. Our enhanced BIK calculator brings the new company car tax rules into focus.
Established in 1963, Arnold Clark Vehicle Management is a family-run company that specialises in leasing and fleet management services.
We're one of the UK's top 10 vehicle leasing companies, with over 30 years' experience working with the UK public sector.
Our specialists deliver a signature vehicle leasing service that's efficient, flexible and friendly. We deal with a diverse range of public sector fleets, from healthcare to local government.
Looking after some of the country's most important fleets, we're approved suppliers on a variety of frameworks, including the Crown Commercial Services Car Lease and the Scottish Health Service framework.