Offering a company car can be an excellent benefit to offer employees, both for improving existing morale and attracting some of the best new recruits. For businesses which have a lot of client meetings, it will also ensure your staff are arriving in a professional manner and generating an excellent first impression. If your organisation is thinking about offering company cars, there are various important points you need to first consider.
The first thing to sort out is the budget that is available to roll out a company car scheme. This will go hand in hand with the number of vehicles required; a large budget for only a few cars will increase the options available, for example. Buying a load of cars outright will lead to lost finances due to depreciation and a lot of issues such as sorting out repairs and servicing. Instead, leasing usually makes the most financial sense and saves headaches as servicing, repairs and more can be included in the price. It also makes it easy to budget on a monthly basis for the required company cars.
If you do buy one or more company cars then undertaking a HPI check to guarantee the security of your new vehicle here is advised. This covers the MOT history of a vehicle among many other checks, to ensure that any used car you are looking at is safe to drive on the roads. Without a HPI check there is a risk that you could end up buying a vehicle which has previously failed its MOT, has been written off or has other underlying problems.
For those leasing vehicles, you will want some of the best and newest company cars on the market. While businesses buying will likely be looking for cheaper options. Depending on your budget and financing method, choose appropriate vehicles for the sector you work in. For example, a law firm may desire black executive vehicles, while a creative industry could be better suited to something a bit jazzier.
There are tax considerations on company cars, which your business and individuals using them must be aware of. HMRC must be informed of all company cars, with elements such as how much they are used, fuel type and economy, CO² emissions and more all affecting the tax owed for each company car.
Make all these considerations and work out if offering company cars is an advisable move for your business.