Deloitte launches green company car scheme for all employees
Deloitte, the business advisory firm, has launched a new innovative company car scheme believed to be unique in the UK.
The initiative will help reduce costs for participating employees as well as reducing carbon emissions.
Mike Moore, a director in the employment taxes group at Deloitte, said: “The new company car tax rules coming into force from April 2009 change the tax relief available for businesses and are based on CO2 emissions. As such, employers will need to think again about how their company car schemes will work.
“At Deloitte, we decided to take a more innovative approach by widening out the availability of company cars to all 12,000 employees nationwide - all cars in the new Deloitte All Employee company car scheme have C02 emission levels of 120g/km or below.”
With the new scheme, there are three key areas where savings can be made:
John Kerr, managing partner for talent at Deloitte, said: “We are delighted that we are now in a position to be able to open up the company car scheme for all permanent Deloitte employees, allowing them to enjoy affordable, environmentally friendly vehicles.
“This scheme provides a car for business and personal use which includes in the monthly cost fully comprehensive motor insurance, roadside assistance, maintenance and servicing and road fund licence.”
Moore added: “Our new scheme goes against all historical trends where company car schemes are traditionally only open to senior executives. In fact, since its introduction just two weeks ago, it has already generated interest from over a third of the workforce.”
Notes to Editors:
About the new company car rules
From 1 April 2009, the existing £12,000 Expensive Car Leasing Disallowance (ECLD) threshold will be scrapped and replaced with a new leasing disallowance based on CO2 emissions.
Cars with CO2 emissions above 160g/km will receive a 10% writing down allowance, while those at or below 160g/km will attract a 20% allowance. Thus enabling businesses buying a vehicle emitting 160g/km or below outright will be able to offset twice as much of the cost of its depreciation against their corporation tax bill.
In addition, until 2013, firms buying vehicles that produce less than 110g/km of CO2 will be able write off the full cost of these cars in the first year.
Two examples of cars currently available through the Deloitte scheme:
|Private monthly cost
|Net monthly cost
as company car (2)
|Monthly saving||% Saving|
|Peugeot 107 3 Door Hatch 1.0 Urban Lite||£287||£158||£129||45%|
|Ford Fiesta 5 Door Hatch 1.6 TDCi Zetec||£428||£197||£231||54%|
(1) Private cost includes rental, maintenance and insurance
(2) Figures shown are for a basic rate taxpayer and are current at the time of going to press
About ‘whole life cost’
The foundation of the Scheme’s fleet design is car selection on a whole life cost basis and includes capping of emissions. Whole life cost conveys the idea of the total cost of acquiring and running a car over its life on the fleet.
In this press release references to Deloitte are references to Deloitte LLP, which is among the country's leading professional services firms. Deloitte LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu (‘DTT’), a Swiss Verein, whose member firms are legally separate and independent entities. Please see www.deloitte.co.uk\about for a detailed description of the legal structure of DTT and its member firms. The information contained in this press release is correct at the time of going to press. For more information, please visit www.deloitte.co.uk.