•
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
