Did you know that around half of all the new cars sold in the UK every year are sold to companies for use as company vehicles? Unlike in the US, there are strong incentives for companies in the UK to do so. When you talk about the pros and cons of providing company cars, it all depends on whose perspective you take.
Valuable for Employees
It is valuable for employees with families to have access to a second car. And for those individuals that do not have a vehicle, a company car can prevent the need to take public transportation or to make other arrangements. Situations where there is an agreement between employees and employers, in which the car is used as a salary sacrifice scheme, can result in benefits to both parties; although this is not always the case. While it may reduce an employees’ NIC obligations and limit income tax payments, the taxes incurred by driving the car may offset that benefit and even make it uneconomical.
The cost of repairing, servicing, maintaining, insuring, and eventually replacing company cars must also be taken into account and factored into the equation. Ultimately, the company car seems to serve as a motivator mostly, but in the right situation, it is a powerful incentive that can show employees that their employer cares about them. Whether this is the right decision for your business can also depend on how important transportation is to the job. Do you want it to serve as a bonus? An employee benefit? Without proper analysis and planning, the company car can lose the company money and be viewed as just another part of the job.
Is it Practical?
It may make more sense to make use of a vehicle reimbursement program in which the business is only liable for activities undertaken on the businesses’ behalf. Company cars, on the other hand, are the company’s responsibility at all times. If the company can work directly with a dealership like Young Automotive Group in order to secure discounts and lower down payments, it may be an attractive alternative to incentivize employees to buy from a strategic partner. The company can take advantage of all the pros of maintaining a company fleet while avoiding the cons.
A strategic partnership with a dealership coupled with the vehicle reimbursement program still allows a company to boost employee morale and facilitate their commutes to work while also boosting the bottom line. In the end, a company car is a decision that allows the company and its employees meet each other half way. It may not have outstanding perks for your business, but if it helps your employees perform, it may be well worth it.
Why Is Quantity Surveying Essential in Construction Industry
Quantity surveying is an essential part of the Australian construction industry. It is the process of calculating and estimating the...
How to Maintain Upholstered Furniture
No matter if you have pets or kids, maintaining your upholstered furniture is quite a challenge. Even though vacuuming it...
How Do I Find a Good Bubble.io Developer?
Finding a good bubble developer to help build your app or digital product can seem challenging. How can you choose...
When is a right time for home repairs?
Summer is a popular time for a renovation around the globe. While it is true that bright days and warm...
Top 15 Alteryx Competitors
The world has seen a tremendous rise in startups and new incorporations in the business world. Companies have great potential...
Latest Wedding Trends for 2023
If you’re planning on getting married this year, chances are you’re probably overwhelmed and confused when it comes to wedding...
Tips To Make The Most Of Your City Break In London!
London is one of the best cities in the world, known for its quintessentially British culture, great nightlife, fantastic museums...
The Ultimate Guide To Packing For A Trip To London
London is one of the best cities in the world, known for it’s rich history, quintessentially British culture, the best...
Top 15 Web Development IDEs
The web development field has seen sustainable growth throughout the years. As technology is advancing, so is the web development...
12 Key DevOps Programming Languages to Still Popular in 2022
“DevOps is not a goal, but a never-ending process of continual improvement.” – Jez Humble Delivering the finest of services...
Festival Fashion Style Tips For 2022
Summer is well and truly here and with that comes the festival season! From the biggest stars performing on stage...
4 Tips For Making Your Wardrobe More Sustainable
Everyone is trying to make more of an effort to make their wardrobe more sustainable, but often are unsure where...
7 tips on how to organize a budget-friendly move
If you are planning a move any time soon, you might be worried about all the expenses that wait for...
Metal Roof Colors: How to Select the Best Color for a New Roof
Choosing the right type of material for your roof is enough of a hassle already that the question of choosing...
Simple Ways To Feel More Confident At The Gym
If you are new to the gym, or you haven’t been in a while, sometimes you might not feel completely...
Tech7 years ago
Creating An e-Commerce Website
Tech7 years ago
Design Template Guidelines For Mobile Apps
Business7 years ago
The Key Types Of Brochure Printing Services
Business3 years ago
What Is AdsSupply? A Comprehensive Review
Travel10 years ago
Who Else Wants Also Nfl Hat
General7 years ago
Kobe Bryant With His Unique Nba Jerseys
Tech8 years ago
Why Small Businesses Can't Ignore Mobile Technology
Tech7 years ago
Climb Google Using These Checklists