Being one of the most popular work perks, company cars come with a myriad of benefits for a business and its workforce.
Despite tax implications, they remain high up on the list for employers to consider. From saving money to advertising for new opportunities, read on to discover some of the best benefits of investing in company cars.
Save money with company cars
When it comes to investing in company cars, there are some significant saving opportunities if you know where to look.
Fuel cards are one such tool which save time, money, and effort for you and your employees. Often passed over as credit cards for diesel and petrol fuel payments, you should consider fuel cards to be a neat add on to enhance the benefits of your company car.
The first thing you should know about is the potential discounts that come with schemes like the Allstar fuel card. Often you have access to cheaper fuel tariffs by agreeing fixed fees with card providers. But for those of you who have been in business for a while know how frustrating it is to reclaim expenses and VAT. The Allstar fuel card can cut admin time by producing an HMRC compliant invoice with every purchase. This means there is no need to wade through scrunched up receipts and complicated tax forms — everything is automatic.
Fleet maintenance is also a way you can save money on company cars. And educating your staff plays a huge role in creating an efficient culture company cars can thrive in.
Speed is a common cause of wasted fuel and vehicle damage. You ask employees to slow down and track this with the management software which comes with fuel cards.
Favourable tax if you invest in electric vehicles
As commercial and professional interest falls away from fossil fuel, there are some great incentives for those of you who choose electric cars as your vehicles of choice.
Often the biggest drawback of company cars is it opens your business up to more responsibility and taxation. Namely, Benefit in Kind which is a tax on work perks to reflect the monetary value.
But with EVs, governing bodies are making life much easier and waving many punishing additional fees. This year pure electric cars will pay no company car tax at all in the UK.
Electric cars are also except for city tariffs, enjoy free parking, and qualify for varying grants. This means that investing in eclectic is not merely cost-effective, it is openly encouraged by decision-makers.
Potential branding opportunities
You can also drum up some marketing buzz by having employees drive around town in company cars.
The average driver will spend hours upon hours travelling to and from work during their lifetime. Therefore, wrapping your car in company branding can be a powerful advertising tool for your business.
People are creatures of routine and your employees are likely to take the same route to work every day. Seeing the same vehicle for a consistent period of time will familiarise passers-by with your brand. This is because you are influencing the subconscious by exposing it to passive and implicit learning — a process where you are learning without paying attention.
Not convinced? A branded vehicle can generate more daily impressions than a billboard. And driving around highly populated areas means even the smallest decal becomes a portable advertisement ready to spread awareness.
Great for employee morale
Perhaps not the status symbol they once were, company cars still make great work perks.
Successful companies seek to attract and retain a group of skilled, dedicated employees. A good owner will look to fulfil needs and ease external pressures to get the best out of their staff. After all, incentives are a powerful tool for advocating loyalty.
Factoring in volatile fuel prices and eye watering insurance payments, running a vehicle nowadays can leave you with empty pockets. Company cars are special because they protect your workforce from these costs and boost morale along the way.
Gifting a car is a bold statement of intent that quantifies how much they mean to you. This token of appreciation symbolises trust and can have a positive impact on their overall performance. Not to mention provide them with a safe and reliable way to travel to work every day.
Also, by covering vehicle expenses you free up their salary to spend on something more personal. Which in turn allows employees to draw more emotional value from their work.
In truth company cars can be an expensive investment, and if you stick with fossil fuels this is likely to rise even further. But on the whole, the benefits outweigh the negatives. Particularly when you can find new inventive ways to counteract such downsides.