Employer Benefits

Let's simplify the reasons why offering a car leasing scheme through work is good for the company:

Why Offering Car Leasing is Good for Employers (The Company's Benefits)

Think of it this way: when a company lets employees lease cars through their salary, it's not just a nice thing to do for the workers. The company itself gets some pretty good perks too!

Saving Money & Taxes for the Company

• Less National Insurance to Pay: When employees choose this scheme, their pay before tax goes down a bit. This means the company pays less National Insurance on that part of their salary. It's a direct saving!
• Helps Cover Costs: The money saved on National Insurance can be used to pay for running the car scheme or even insurance related to it.
• Could Even Make Money: Some schemes can be set up so the company doesn't lose any money, or might even make a little bit extra through small fees or the National Insurance savings.

Getting and Keeping Good Employees

• Better Benefits Package: Offering car leasing makes the company's overall benefits look better without having to increase everyone's basic pay.
• Attracts Talented People: People who want flexible and green ways to travel will be more likely to want to work for a company that offers this.
• Keeps Employees Longer: If someone leases a car for a few years through the company, they might be more likely to stay with the company for that time, especially if they're a valuable employee.
• Happier and More Loyal Employees: Employees save money and enjoy the convenience, which makes them feel better about their employer.

Making Things Easier for the Business

• Standard Company Cars (If Wanted): The company can encourage employees to choose certain types of cars, which can make managing a "company car" image and efficiency easier.
• No Responsibility for the Cars: The company doesn't own the leased cars, so they don't have to worry about them losing value over time.
• No Big Upfront Costs: Unlike buying company cars, the business doesn't have to spend a lot of money at the start.
• Easy to Grow and Change: The scheme can easily grow as more employees want to join. It's voluntary, so the company doesn't have to commit to a huge number of cars.

Being Green and Responsible

• Encourages Cleaner Cars: Because electric and low-emission cars have lower taxes for employees in this scheme, more people might choose them.
• Shows the Company Cares About the Environment: Offering this scheme, especially with greener cars, shows the company is serious about being sustainable.
• Reduces the Company's Overall Carbon Footprint: When employees drive cleaner cars, it helps the company meet its environmental goals.
• Can Help Get Green Awards: It can help the company qualify for environmental certifications.

Less Hassle and Risk for the Company

• Someone Else Handles the Details: Usually, another company manages the car leasing scheme, so HR and payroll don't have a lot of extra work.
• No Worry About Car Value Dropping: Since the cars are leased, the company doesn't lose money if the car's value goes down.
• Easy to Add to Payroll: It's simple to take the lease payments out of employees' paychecks before tax.
• Less Complicated Than Company Car Taxes: It's often easier to deal with the taxes for this type of scheme, especially for electric cars, compared to traditional company cars.
• Helps Keep Cars Safe: The lease often includes maintenance and insurance, which helps make sure the cars are safe to drive and meet regulations.