COMPANY CARS
New car tax regime to prompt overhaul of fleet policies
With the new company car tax regime coming into force this month, the latest issue of Human Resources magazine investigates the options for employers keen to alleviate any burden on their staff.
Environmentally-friendly vehicles
First and foremost, argues Larissa Bannister, the author of the article, organisations should ensure that employees have access to vehicles that are environmentally friendly.
"An employer must ensure that drivers understand that the increased tax burden is a government - not an individual business - initiative, and educate them as to ways that the burden can be reduced, " she says.
Financial compensation
Compensating those drivers facing an increased tax burden might be a short-term solution, says Bannister - at least until the employer makes changes to fleets to include cars with lower emissions.
Personal contract purchase (PCP) schemes - where employees use a cash allowance from the employer to purchase their own car - are also expected to become more widespread.
Want to know more?
Title: "The company car: status symbol or tax nightmare", by Larissa Bannister, Human Resources, April 2002.
Availability: Contact Human Resources subscriptions in London, tel: 020 8606 7500.
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