Starting my first company car scheme

[hanksmotoring101]

I am a business owner looking to start a company car scheme for my employees. However, I haven't had one before or know anything about how it works. What is the usual framework? Are there any companies you would recommend? Do I have to provide insurance etc?

What are the usual headaches with company car schemes?

Best

[TwigtheWonderkid]

If you are providing a company car, you will normally pay for everything apart from private mileage fuel. There are loads of firms out there that provide outsourced company car advice and management for small firms who don't want to employ a fleet manager.

Edited by TwigtheWonderkid on Monday 7th January 10:14

Edited by TwigtheWonderkid on Monday 7th January 10:14

[Somebody]

You are effectively making and keeping cars available for your employees (the ones entitled to the company cars). Yes, you will have to pay for insurance (business cover is not cheap even with high voluntary excess).
Company car drivers opt for company cars for the hassle free factor - it is someone else's job to keep the driver mobile. That's why it's viewed as a perk, and have to pay tax on the perk (benefit in kind).

Have a read of these: https://www.fleetnews.co.uk/driving-business/ The 2018 edition will give you some idea as to what it involves

Edited by Somebody on Monday 7th January 13:48

Edited by Somebody on Monday 7th January 13:48

[schmunk]

With the tax rules as they are, unless the employees will be getting Ultra Low Emissions vehicles I would steer clear of a car scheme and just give them some cash (perhaps partitioned as a non-pensionable "car allowance").

[CzechItOut]

Have you surveyed your eligible staff in order to understand how many would actually take a company car as opposed to cash?

Nowadays, company car tax rules and the proliferation of personal lease arrangements means that a company car is much less appealing and you might find you are doing to the trouble/expense of setting up a scheme only to receive very low take-up.