• You
need to decide which employees will be eligible.
The choice will vary according to your fleet and
staff structure. You must also consider whether
to offer a separate allowance for high-mileage drivers,
who will be hit hardest by the tax changes –
this may even extend to salary top ups to compensate.
If you introduce a 'Cash for Car' scheme alongside
company cars, can you bear the increased administrative
burden?
• You
need to set up processes to counteract any employee
resistance to change – for instance, you may
find it helpful to arrange an affinity with a third
party such as Platinum, offering a 'one stop shop'
approach to competitive breakdown cover, service
and maintenance contracts to employees. It’s
important that the employer is clearly separate
from any third party and scheme users because increasingly,
the Inland Revenue is likely to treat as taxable
any ‘Cash for Car’ benefit that is sponsored
in some way.
• Consider
providing extra resources for your personnel department
during any changeover period to deal with staff
queries and concerns about the new scheme.
• You
need to consider the impact that ‘Cash for
Cars’ will have on your employees’ choice
of cars, and the possible effect on the image of
your company.
• You
must have proper guidelines in place for when employees
use their own cars for business purposes. Are your
staff properly insured? Has the car been properly
serviced? If there’s an accident, what about
a replacement car?
• Don’t
disregard corporate risk management. Employers may
still be responsible for employees and their cars
on company business, even though actual control
lines are diminished.
For a free
consultation and a preliminary cost versus benefit
assessment
please call Platinum Financial Solutions on 01225
759515
Disclaimer:
Renrod Ltd is authorised and regulated by the Financial
Services Authority. Please ask for full terms and
conditions. This booklet is purely a source of information
and does not constitute a credit advertisement.
Information contained in this document is for general
guidance only. You must satisfy yourself by your
own investigations with regard to the accuracy of
the model/s and the costs or cost savings that may
arise. No responsibility is accepted by Renrod Ltd
t/as Platinum or Wellsway (Bath) Ltd for any loss
or damage of whatever kind or however caused arising
from the use of this document. All information correct
at time of going to press – March 2007. v1
March 2007
