Employees need help to benefit from company car tax system, claims ACFO director
By Kyle Linsay
Wednesday, June 19, 2013 - 10:52
CLAIM: Employees need fleet tax advice
Some employees need educating on today’s company car benefit-in-kind tax system and advice on the plethora of low emission models available, an expert has claimed.
Speaking at the Association of Car Fleet Operators (ACFO) conference, Director Caroline Sandall outlined how company cars had become increasingly common as staff benefit options.
However, Ms Sandall claimed too few employees offered such a benefit have an understanding of the taxation system now in place.
“Many employees have an 11-year-old view of company car tax,” she said, referring to the previous benefit-in-kind tax system, replaced in 2002 by a vehicle emissions and model price-based regime.
“It can be cheaper for employees to have a company-provided car than to run their own.
“Many employees that may not have had a company car for several years are unclear of how today’s tax system operates.”
Ms Sandall added that employees could reap reward from the ‘hassle free’ benefit of a company-provided car and protection from costs including vehicle service, maintenance and insurance premiums.
She also claimed such a system can be beneficial to employers, given the range of low emission cars available and a rewarding benefit-in-kind system.
Cars, from an employer’s perspective were, said Ms Sandall, an ‘attractive benefit’ to offer staff.
This could not only be a key employee recruitment and retention tool, she added, but could also help reduce organisations’ carbon footprint and boost occupational road risk management focus.
An increasing number of employers are offering salary sacrifice car schemes and Ms Sandall said they potentially offered organisations the opportunity to create cash savings.
“Benefit provision is expanding all the time and now commonly includes some form of car provision,” she concluded.
Image courtesy of drs1ump, with thanks.