Why It’s Important To Invest In Company Cars

Company cars are a benefit provided to the employees of many firms, but what do the employers get out of this arrangement? In fact, there are many advantages to providing a company car that make considering this particular form of compensation well worth any company’s while.

Why It’s Important To Invest In Company Cars

An Attractive Employee Benefit

If you want to get the best people behind your business, you need to be willing to make an offer that will match their talents, and that includes non-cash benefits. Many people view company cars as more convenient than buying their own, and thanks to contract offers from dealers like RRG Group employers are often able to offer prestige brands and extra features that their workers may be unable or unwilling to spend their own money on. All this makes them a great part of a pay package to entice the best talent.

Tax Savings on All Fronts

Many non-cash benefits an employer provides as part of a salary sacrifice scheme are fully or partially tax exempt, and this includes company cars. What this means is that both employers and employees get a better deal.

Employers are not obliged to pay National Insurance Contributions on company cars, saving them money. Meanwhile employees only pay income tax on their salary, meaning that non-cash benefits are actually worth more than an equivalent amount of money, some of which would be lost in tax. The upshot of all this is that employers are not only making savings themselves, but also making their benefits package even more appealing in the process.

It Does Away with Transport Concerns

For many, commuting can be the worst part of their day, and public transport only makes that worse with its additional wait times and the all-too-real possibility of breakdowns and strikes. This is trouble for companies as much as it is for individuals—a valued worker who is not able to do their work because they’re stuck behind a cow on the rail tracks isn’t worth much.

Once again we see a win-win situation where employees get power over their own commute and companies get to know that their staff can be wherever they’re needed. If on-site parking is available, this only makes the benefit sweeter.

So as you can see, company cars are good for both employer and employee, making them an ideal non-cash benefit.

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