The benefits of offering Colleague Cars to your staff are considerable.
As well as providing employees access to one of the most sought after benefits, all of this can be done for no cost to the organisation.
In summary, Colleague Cars:
- Provides a unique company car package to your employees
- Maximises the tax benefits through salary sacrifice – employees can save up to 35% over personal purchase
- Reduces the risk and environmental impact of business travel when compared to private car use
- Has little risk or administration - we provide motor insurance and cover for early termination. Quotations are provided online and all key communication with the employee. All you need to do is collect payments via salary sacrifice – and we will provide you with full reporting to help you do this!
- Delivers genuine value to your employees, increasing staff loyalty and retention
Example of financial benefit to employees (22% taxpayer):
| Toyota Aygo 1.0 VVti |
£ |
| Typical monthly cost of car and insurance (ex. VAT) |
172 |
| Tax and NIC impact of salary sacrifice |
(57) |
| Company car tax payable |
19 |
| Net cost to employee* |
134 |
If an employee were to obtain the same vehicle personally with the same discounts, the monthly cost would be £183 per month including VAT. The employee therefore saves £49 per month. Typical retail prices for this vehicle and insurance could be £200 to £250 per month or more!