Lots of business are constantly trying to think of cool perks and bonuses to offer all of their employees. Even though this can bump up your overall company expenses, most businesses are willing to do this as offering very attractive perks will help to tempt all of the top talent to your team.
One perk that most employees look out for when they are applying for a position at a new company is a car. Have you been thinking about offering company cars to some of your employees? Here are some things to consider that will help you decide.
Should You Lease Or Buy?
First of all, you need to figure out whether you will rent the company cars from a leasing service such as easifleet buy the company cars outright. There are various pros and cons for each option. Firstly, if you lease them out, then you will need to pay a high deposit to cover any potential damage to the cars. However, buying the cars so that they belong to the company can be very expensive. Some companies look for rent-to-buy options. This is when they rent some vehicles from a leasing company with the intention of eventually buying them. This can work out quite a lot cheaper than buying the cars outright straight away.
Will Employees Be Willing To Pay Company Car Tax
One downside that might put your employees off accepting the offer of a company car is the tax that can come with one. As the car will still belong to your company even once an employee is using it, any journeys they make in the car that aren’t for work will be seen as perks. And that means that they are taxable. The amount of tax that they have to pay on these journeys will depend on the type of car and its C02 emissions. So, to try and keep your employees’ taxes down to a minimum, you should encourage them to only use their company car for professional journeys. It’s also worth investing in economical cars.
Who Pays For Fuel?
One of the biggest debates that often rages between business owners and their employees over company cars is who is responsible for filling the car up. As the cars technically belong to the company and that most journeys taken in the car are for work purposes, most employees believe that the company should pay for fuel. However, most businesses have different ideas and believe that fuel should be left to the employees. Some companies settle this by offering their employees monthly fuel allowance in their wages. If the employees use more fuel than this, the money for it needs to come out of their own pockets.
Hopefully, these three points will have given you plenty of food for thought when it comes to company cars. If you still aren’t too sure, it’s a good idea to have a meeting with your board members to try and get some other people’s opinions and feedback on this issue.
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