Car allowances are easy to set up and implement for employers. But did you know this about car allowances? 🤔
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Do you pay car allowances?? Do you receive a car allowance? Car allowance is a payment made by employers to employees to cover the cost of using / insuring / maintaining their personal vehicle for work related purposes. It's an increase in salary and is taxable too. Putting aside the tax payable and money lost by BOTH employers and employees to pay car allowances to staff, car allowance also brings about a different issue - GREY FLEET!! What's that you ask!? Grey fleet consists of employees personal vehicles which are REGULARLY used for business purposes. There are risks with this - SAFETY - limited company control over condition and maintenance of vehicles LEGAL & COMPLIANCE - appropriate insurance, tax, MOT, relevant, clean driving licences ENVIRONMENTAL - emmissions standards and fuel efficiency COSTS - fuel and administration costs for expenses claims Luckily, I have a solution to all the above AND a way to mitigate tax costs!! #greyfleet #fleet #employeebenefits #employers #emmissions #environmental
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CAN YOU COVER YOUR VEHICLE COSTS FOR £200 PER MONTH? I'm noticing that recruitment agencies and employers are STILL offering employees out dated company car allowances - often these are for higher rate taxpayer positions too In the current financial climate, a £5,000 gross annual car allowance just doesn't cut it anymore - there is no value! For a 40% taxpayer this nets down to around £200 p/m after the effect of tax and National Insurance to cover - Vehicle finance costs Road tax Tyres Maintenance ...and the ever increasing cost of car insurance 😒 Thankfully, there is a better way to address this and save your Company VAT and fuel costs PLUS Reduce your employees tax liability and car costs So, if you still pay car allowances, or indeed receive one, I'm only a phone call away! Not sure where to start, or if this right for you? Don't know anything about cars, or which one is best for you? Not keen on EVs? Want to provide an actual benefit to your employees? REAL LIFE CONTEXT RIGHT HERE 👇 You'd need £1,000 p/m car allowance to get into a fully maintained Kia Sportage currently 🤯 10,000 miles annually 1 + 35 months Perhaps it's time to give me a shout to find a better way forward! 🙏 07714 284263 hanna.ml@vehicleconsulting.com #recruitment #employer #employee #financedirector #ceo #tax #carallowance #employeebenefits #salarysacrifice #taxincentives #vat
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Updated for 2024: Our Complete Guide to FAVR Car Allowances. Get all the info you need on relevant market factors, benefits and IRS guidelines. https://hubs.li/Q02pxm4M0
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Curious about the buzz around FAVR car allowances? 🤔 Dive into this insightful article demystifying FAVR's intricacies and uncover how it can drive efficiency and satisfaction across your organization! 🌟
Updated for 2024: Our Complete Guide to FAVR Car Allowances. Get all the info you need on relevant market factors, benefits and IRS guidelines. https://hubs.li/Q02pxm4M0
The Complete Guide to FAVR Car Allowances
everlance.com
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🚗 When is a pool car not a pool car? Generally, where an employee has access to a car owned by an employer, a company car benefit-in-kind arises. However, if the car is classed as a ‘pool’ car, there is no taxable benefit however there are strict HMRC conditions… A company car is a well-established perk of employment, even with the restrictions on salary sacrifice arrangements and higher charges for non-electric vehicles, it remains a popular option. However, there is an exemption for cars that qualify as ‘pool cars’, on the grounds that no individual has exclusive use of the vehicle. The use of these vehicles is not a benefit-in-kind and does not need to be reported on the P11D form. Generally speaking, a pool car is a car that is available to a pool of individuals. But to qualify for the tax exemption, there are strict criteria that must be met!! ⛔ Pool cars are a hotspot for HMRC to challenge – perhaps unsurprisingly, as the benefit-in-kind charge can be applied to as much as 37% of the list price annually so if you need clarification then do not hesitate to contact us on 01924 682113 or email enquiries@amindoffiguresltd.co.uk #poolcar #BenefitInKind #P11D #Employeeperks #taxsavings
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🚗 Compulsory salary sacrifice availability suggested as EV market boost 🚗 Mandating salary sacrifice car provision for some organisations could be a way of democratising EV roll-out in the UK. That’s according to James Court, CEO of EVA England, who said that action was needed to widen the roll-out of the vehicles, which were currently tending to go to more affluent drivers. Court addressed a Westminster Forum Projects seminar on the next steps for EV deployment and charging infrastructure, which also heard from Lorna McAtear on the importance of favourable EV company car tax rates, and Ian Plummer on how falling used EV prices might be a problem in the long term. Read more online: https://lnkd.in/efBqsJ5J 🔔 Click on our follow button to see regular car and fleet industry news and insights 🔔 #BusinessCar #evs #electricvehicles #salarysacrifice #fleet #companycar #usedcars #usedevs
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Understanding the distinction between a company car and a pool car is crucial for business owners when considering taxable benefits. What is a Pool Car? A pool car must meet specific conditions set out in employment income legislation: - It is made available to and actually used by more than one employee. - It is available to each employee because of their employment. - One employee does not ordinarily use it to the exclusion of others. - Any private use by an employee is merely incidental to its business use. - It is not normally kept overnight at or near any employee's residence except on premises occupied by the employer. Meeting these conditions ensures that a pool car is exempt from being treated as a taxable benefit, unlike a company car, which can attract significant tax liabilities. Knowing these differences can help you make informed decisions and optimise your business's tax position. For further guidance, please contact us. #TaxAdvice #BusinessOwners #CompanyCar #PoolCar #Lancashire #WatersAndAtkinson #CharteredAccountant
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The number of employees paying company car tax has risen for the first time in six years and is being partially attributed to the growing popularity of salary sacrifice schemes for cars: https://lnkd.in/eNaKKHjU #CompanyCar #Fleets #SalarySacrifice
Company car driver numbers increase for the first time in six years
fleetnews.co.uk
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Let’s look at the rates for Company Cars, Including: vehicles acquired via a Salary Sacrifice scheme The HMRC has a different mileage reimbursement rate for company cars called the Advisory Fuel Rate (AFR).The rates are considerably lower than the AMAP rates used for drivers using their own vehicles on company business as the AMAP rate takes into consideration wear and tear, maintenance and insurance costs the driver pays for their private vehicle. https://lnkd.in/eHZqPdnv
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More info in this video for anyone thinking of getting a new car using a company salary sacrifice scheme.... FYI - if your work do not have a scheme, it costs your employer nothing to set one up for you and it actually will save you AND your employer money!
Salary Sacrifice for Electric and Plug-in Hybrid Cars - is it worth it? 🤔 There are lots of pros to getting a company car through a salary sacrifice scheme, but also considerations to take into account. We're here to talk you through everything you need to know, so you can make an educated decision for you, your business, & your staff. If you're interested in setting up a scheme (for free) or just want a bit more information, get in touch with the team on 0333 202 6668 or follow the link in the comments 👇 #salary #workcar #companycar #businesslease #carleasing #electriccars #ev #hybridcars #benefits #tax #savings #salarysacrifice #newcar #businessmiles #companybenefit
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