Cash for Cars
 
 
 


FINANCE - CASH FOR CARS - COMPANIES  
Cash for car checklist

• 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.

Disclaimer: Renrod Ltd is authorised and regulated by the Financial Services Authority. Please ask for full terms and conditions. This information is purely a source of information and does not constitute a credit advertisement. Information contained in this section 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 trading 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 – September/October 2009. v4 Sept/Oct 2009

<< Back

 
 
 
Platinum Renault Platinum Vauxhall Platinum Toyota Platinum Nissan Platinum Skoda Causeway Saab