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If there is one thing that any business owner should want to do, it’s offer amazing perks to their employees. From lunches on a Friday to bonuses every quarter, perks are important if you want to ensure that your employees are happy. One of the perks that you will find goes down very well with staff is a company car.
For years, the offering of a company car has been based on performance more than anything else. Around half of the cars sold in the country are sold as company vehicles and it’s one of the best perks to offer people – especially if you’re sending them out onto the road as part of their job. Ensuring that their cars are healthy with the right Diesel Fuel Pumps, the best mechanics on hand to work on them and the right insurance is vital. You want to offer company cars, and you want to make sure that you get it right when you do. Offering a company car is a great non-cash benefit, but are you aware of both the pros and cons? Let’s take a look at both so you can make the right decision:
- Providing your employees with a car is a great benefit if you want to offer your people more flexibility. It provides them with the chance to easily get to work, too, so if you know that your staff live further away, you’re going to give them a chance to not be late for work!
- It’s a great benefit for those staff members who don’t have their own vehicles. If you know your staff are struggling as they rely on transportation to get to work, you can ensure that they don’t have to worry about it anymore.
- You can sacrifice your salary. Company cars are a great option for salary sacrifice. If you want to help your staff save money on their cash, you’re going to do this by saving their tax money with salary packaging schemes.
- You no longer have to have issues with transport for staff. When there are strikes on public transport, your staff won’t be able to get to work. If you offer a company car, this won’t be an issue anymore.
- When you offer company cars to your employees, they face extra taxes. If you think about the financial impacts of company cars, you will be able to ascertain whether you will be able to offer something good or not. More tax equals less cash, so think about that before you go ahead and offer it.
- It might not be a necessary expense. Company cars cost petrol, insurance and more. Unless you’re planning to foot the bill for your staff, don’t do it!
- You have to maintain them. As the employer, you’ll be in charge of maintaining your company cars – all of them! So, you need to think about whether your business can handle the financial pressure of the expenses.
Now you know the pros and cons, are you going to offer cars for your business?