The provision of company cars to employees can be a sensitive area – one on which employees could potentially base their decision on whether or not to accept a job offer. It is also a significant payroll cost to any employer, often being second or third to salary and pension costs.
The Deloitte Car Consulting team has deep experience of working with organisations in both the private and public sectors to review and help design cost effective fleet policies. We work with employers and directly with the fleet management industry, delivering both consultancy support and technology solutions.
Focus on total cost of vehicle provision
Since 2002, employees’ company car benefit-in-kind tax charge has been based on the car’s list price and official CO2 emission figure. This, together with further changes in 2009 which aligned the level of corporate tax relief to the cars’ CO2 emissions, has caused many employers to focus on the total cost of vehicle provision, reflecting both the commercial costs and taxation implications.
Demand for cost savings and greater employee choice
The economic environment has added pressure on organisations to deliver business road travel cost savings as part of wider cost saving programmes, whilst ensuring that the impact to employee choice is kept to a minimum. This is essential for organisations in remaining attractive from a recruitment and retention point of view.
Enhancing employee benefits through salary sacrifice
A significant number of large UK employers are looking at the provision of a company car, via salary sacrifice, to the wider workforce as an enhancement to their employee benefit offering.
Increasing focus on Corporate Social Responsibility and Health & Safety
Employers are also faced with policy decisions around the impact that Corporate Social Responsibility has on their car or cash solutions as well as the management of Health & Safety legislation.
Aligning global and local requirements
Organisations with international company car fleets are also facing a challenge to align multi-jurisdiction fleet policies, whilst reflecting local car pricing and taxation systems.
We can offer a wide range of car and cash related services for UK and international organisations across all industry sectors. The services we can assist with include:
For further information please contact Mike Moore or your regular Deloitte contact.