Vehicle options for new staff member - best route
Discussion
Hi folks, we are looking at taking on another member of staff who will be a sales person.
We haven't had a company vehicle for years and it was just a pool car which everyone had use off.
Our last sales person put in ridiculous mileage claims and want to avoid that.
Was possibly think a fiesta van or similar (as it would be good for carrying deliveries and samples) but open to suggestions, especially regarding cheapest route mileage or fuel wise and best for vat and tax!
Basic payment we want as low as possible.
Thanks!
We haven't had a company vehicle for years and it was just a pool car which everyone had use off.
Our last sales person put in ridiculous mileage claims and want to avoid that.
Was possibly think a fiesta van or similar (as it would be good for carrying deliveries and samples) but open to suggestions, especially regarding cheapest route mileage or fuel wise and best for vat and tax!
Basic payment we want as low as possible.
Thanks!
Some kind of combi van would do the job and be cheap enough (are you vat registered?) but it depends if this is supposed to be a perk for the sales person? If so then you/they would be better off with some kind of estate car.
They hybrid option would be a pickup but these are a bit of an acquired taste.
They hybrid option would be a pickup but these are a bit of an acquired taste.
it is definitely a sales person role, rather than a glorified delivery driver!
Interesting mention of the transport senario being a perk, I guess a 2 seat van may be seen as not being one, (to some people). The van isn't totally for practical reasons I just wondered if it would have better tax or vat relief? An estate is out I want a small cheap to run vehicle.
Historically we had a sales person run up huge mileages and put in claims for their car, they were genuine for a few months then they got highly creative, don't want that again, hence deciding to buy a vehicle.
The company provide service into mainly the public sector and is an SME.
Interesting mention of the transport senario being a perk, I guess a 2 seat van may be seen as not being one, (to some people). The van isn't totally for practical reasons I just wondered if it would have better tax or vat relief? An estate is out I want a small cheap to run vehicle.
Historically we had a sales person run up huge mileages and put in claims for their car, they were genuine for a few months then they got highly creative, don't want that again, hence deciding to buy a vehicle.
The company provide service into mainly the public sector and is an SME.
Read up on employee company car tax. Put yourself in their shoes (they're paying the tax on it). Would you be happy to pay for the "benefit" of driving a fiesta van?
Obviously you;ve not said if this is a 16k sales chimp or 40k sales professional tho - which also has an impact.
PS - milking expenses is easy to control, non?
Obviously you;ve not said if this is a 16k sales chimp or 40k sales professional tho - which also has an impact.
PS - milking expenses is easy to control, non?
Either use an expense platform like Concur (which has auto mileage calculations), or just spot check the occasional day / week where you know where the chap has been. Guessing you're using pence/mile rather than fully expensed (the BIK on co+private is extortionate, so it works for neither of you).
TBH, if your salesman is making up mileage and not doing visits, then the mileage cost is the last of your problems...
TBH, if your salesman is making up mileage and not doing visits, then the mileage cost is the last of your problems...
Some Gump said:
Either use an expense platform like Concur (which has auto mileage calculations), or just spot check the occasional day / week where you know where the chap has been. Guessing you're using pence/mile rather than fully expensed (the BIK on co+private is extortionate, so it works for neither of you).
TBH, if your salesman is making up mileage and not doing visits, then the mileage cost is the last of your problems...
Thanks will need to have a look at Concur, that would be the normal spot check routine. Some of that may seem negative but just because we had issues before I would rather have rules or a system in place at the start.TBH, if your salesman is making up mileage and not doing visits, then the mileage cost is the last of your problems...
I definitely considered a tracker how uneasy would that make an employee feel, surely a lot!?
Well, I can only speak for myself but if my gaffer ever insisted on a tracker, I'd insist that he shoved it up his arse, pronto.
Why would you want to work in an environment where you and your boss can't trust each other with something as basic as "did you go and do your job today?"
Appreciate it's hard to work out tho - the contra point being "if you're doing your job then it doesn't matter."
I've always worked in sales roles where the trust needed is quite a bit higher (responsible for much more profitability than could possibly be fiddled on expenses).
Why would you want to work in an environment where you and your boss can't trust each other with something as basic as "did you go and do your job today?"
Appreciate it's hard to work out tho - the contra point being "if you're doing your job then it doesn't matter."
I've always worked in sales roles where the trust needed is quite a bit higher (responsible for much more profitability than could possibly be fiddled on expenses).
The very sad and unfortunate reality of life is that when someone earns a lot of commission and has a bad month combined with difficult personal circumstances, they will do anything to make up the short fall.
Granted trackers don't work in a lot of situations but on the flip side many businesses have them successfully deployed.
At the end of the day when it's the difference between me being able to draw a salary at the end of the month or not.....
Granted trackers don't work in a lot of situations but on the flip side many businesses have them successfully deployed.
At the end of the day when it's the difference between me being able to draw a salary at the end of the month or not.....
strath44 said:
target is circa £20k, mileage will be approx 20k per year.
Is the target £20k sales per month or per annum? I only ask as having your sales person drive around for 20k miles will likely cost £3k in diesel, tyres and servicing then you've got insurance, breakdown cover, hire cars when theirs is broken and deprecation. Honestly just least a new hatch of your choice, you'll be able to get one full maintained for under £300 per month. The likes of a 116d, Golf, Astra, Focus should be in budget, Kia etc will be nearer to £200 p/m. If you go new maintained your only variable costs will be insurance and fuel.
The capital allowances on buying a motor car are basically s
t more so if buying used and thus high(ish) co2 emissions, commercial vehicles much better but be very careful with car based vans or similar as some are motor cars not commercial vehicles.Contract hire lease payments can be offset against tax if less than 130g/km of co2 at 100% or at 85% if greater, vat can be reclaimed at 50% if you allow personal usage. Finance lease allows the business to claim capital allowances but these are not fantastic unless your going to keep the car to end of life say 8 to 10 years.
Best to have a chat with your accountant about what is the most tax efficient route for the business.
If your concerned about mileage and abuse just get a tracker fitted but tell the employee before you hire them that company vehicles are tracked. All our cars and vans are and our biggest issue was initially trying to introduce trackers retrospectively, abuse reduced dramatically and our insurance premium decreased by a considerable sum. Whilst there where complaints no staff actually resigned.
I think the options are van, truck or small(ish) car.
Citroen Berlingo Van (very slow) £124.49 +vat http://www.bespokevehicleleasing.co.uk/business-le...
Isuzu D-Max £158.47 http://www.bespokevehicleleasing.co.uk/business-le...
Honda Civic £144.11 http://www.bespokevehicleleasing.co.uk/business-le...
As mentioned by others, unless they are shipping lots of goods about then not many people are going to want to run a van as they main way of getting around their sales calls. The cost difference and BiK difference between the three isn't much so I'd definitely go for the Civic.
Citroen Berlingo Van (very slow) £124.49 +vat http://www.bespokevehicleleasing.co.uk/business-le...
Isuzu D-Max £158.47 http://www.bespokevehicleleasing.co.uk/business-le...
Honda Civic £144.11 http://www.bespokevehicleleasing.co.uk/business-le...
As mentioned by others, unless they are shipping lots of goods about then not many people are going to want to run a van as they main way of getting around their sales calls. The cost difference and BiK difference between the three isn't much so I'd definitely go for the Civic.
b0rk said:
Is the target £20k sales per month or per annum? I only ask as having your sales person drive around for 20k miles will likely cost £3k in diesel, tyres and servicing then you've got insurance, breakdown cover, hire cars when theirs is broken and deprecation.
Honestly just least a new hatch of your choice, you'll be able to get one full maintained for under £300 per month. The likes of a 116d, Golf, Astra, Focus should be in budget, Kia etc will be nearer to £200 p/m. If you go new maintained your only variable costs will be insurance and fuel.
The capital allowances on buying a motor car are basically st more so if buying used and thus high(ish) co2 emissions, commercial vehicles much better but be very careful with car based vans or similar as some are motor cars not commercial vehicles.
Contract hire lease payments can be offset against tax if less than 130g/km of co2 at 100% or at 85% if greater, vat can be reclaimed at 50% if you allow personal usage. Finance lease allows the business to claim capital allowances but these are not fantastic unless your going to keep the car to end of life say 8 to 10 years.
Best to have a chat with your accountant about what is the most tax efficient route for the business.
If your concerned about mileage and abuse just get a tracker fitted but tell the employee before you hire them that company vehicles are tracked. All our cars and vans are and our biggest issue was initially trying to introduce trackers retrospectively, abuse reduced dramatically and our insurance premium decreased by a considerable sum. Whilst there where complaints no staff actually resigned.
Honestly just least a new hatch of your choice, you'll be able to get one full maintained for under £300 per month. The likes of a 116d, Golf, Astra, Focus should be in budget, Kia etc will be nearer to £200 p/m. If you go new maintained your only variable costs will be insurance and fuel.
The capital allowances on buying a motor car are basically s
t more so if buying used and thus high(ish) co2 emissions, commercial vehicles much better but be very careful with car based vans or similar as some are motor cars not commercial vehicles.Contract hire lease payments can be offset against tax if less than 130g/km of co2 at 100% or at 85% if greater, vat can be reclaimed at 50% if you allow personal usage. Finance lease allows the business to claim capital allowances but these are not fantastic unless your going to keep the car to end of life say 8 to 10 years.
Best to have a chat with your accountant about what is the most tax efficient route for the business.
If your concerned about mileage and abuse just get a tracker fitted but tell the employee before you hire them that company vehicles are tracked. All our cars and vans are and our biggest issue was initially trying to introduce trackers retrospectively, abuse reduced dramatically and our insurance premium decreased by a considerable sum. Whilst there where complaints no staff actually resigned.
Thanks for all that, very informative, appreciate it! I will be speaking to our accountant this week and see what his take is on it. Interesting the details on vat reclaim on contract hire payments I will look further into that. "£20k target" Sorry that was poorly worded someone asked what the salary will be, that isn't the sales they are expected.
Thanks also for the links above on vehicle offers, I think I will probably be considering a shift more toward a civic etc based on the above chat!
Edited by strath44 on Tuesday 26th January 10:42
b0rk said:
Is the target £20k sales per month or per annum? I only ask as having your sales person drive around for 20k miles will likely cost £3k in diesel, tyres and servicing then you've got insurance, breakdown cover, hire cars when theirs is broken and deprecation.
Honestly just least a new hatch of your choice, you'll be able to get one full maintained for under £300 per month. The likes of a 116d, Golf, Astra, Focus should be in budget, Kia etc will be nearer to £200 p/m. If you go new maintained your only variable costs will be insurance and fuel.
The capital allowances on buying a motor car are basically st more so if buying used and thus high(ish) co2 emissions, commercial vehicles much better but be very careful with car based vans or similar as some are motor cars not commercial vehicles.
Contract hire lease payments can be offset against tax if less than 130g/km of co2 at 100% or at 85% if greater, vat can be reclaimed at 50% if you allow personal usage. Finance lease allows the business to claim capital allowances but these are not fantastic unless your going to keep the car to end of life say 8 to 10 years.
Best to have a chat with your accountant about what is the most tax efficient route for the business.
If your concerned about mileage and abuse just get a tracker fitted but tell the employee before you hire them that company vehicles are tracked. All our cars and vans are and our biggest issue was initially trying to introduce trackers retrospectively, abuse reduced dramatically and our insurance premium decreased by a considerable sum. Whilst there where complaints no staff actually resigned.
Honestly just least a new hatch of your choice, you'll be able to get one full maintained for under £300 per month. The likes of a 116d, Golf, Astra, Focus should be in budget, Kia etc will be nearer to £200 p/m. If you go new maintained your only variable costs will be insurance and fuel.
The capital allowances on buying a motor car are basically s
t more so if buying used and thus high(ish) co2 emissions, commercial vehicles much better but be very careful with car based vans or similar as some are motor cars not commercial vehicles.Contract hire lease payments can be offset against tax if less than 130g/km of co2 at 100% or at 85% if greater, vat can be reclaimed at 50% if you allow personal usage. Finance lease allows the business to claim capital allowances but these are not fantastic unless your going to keep the car to end of life say 8 to 10 years.
Best to have a chat with your accountant about what is the most tax efficient route for the business.
If your concerned about mileage and abuse just get a tracker fitted but tell the employee before you hire them that company vehicles are tracked. All our cars and vans are and our biggest issue was initially trying to introduce trackers retrospectively, abuse reduced dramatically and our insurance premium decreased by a considerable sum. Whilst there where complaints no staff actually resigned.
Thanks for all that, very informative, appreciate it! I will be speaking to our accountant this week and see what his take is on it. Interesting the details on vat reclaim on contract hire payments I will look further into that. "£20k target" Sorry that was poorly worded someone asked what the salary will be, that isn't the sales they are expected.
Thanks also for the links above on vehicle offers, I think I will probably be considering a shift more toward a civic etc based on the above chat!
Edited by strath44 on Tuesday 26th January 11:27
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