If a company provides its drivers with a cash allowance instead of a company car, Personal Contract Hire can help them to reduce the risks normally associated with car ownership such as depreciation, disposal and maintenance. The ongoing changes to company car benefits from April 2002 have made it all the more important for both company car drivers and indeed their employees to become more aware of personal taxation issues. As the implications of the move away from mileage discounts to C02 emissions are more clearly understood the issue is even higher on the agenda.
We at Covase understand the taxing issues surrounding the private individual with company cars, and how switching to a personal contract hire scheme can, keep the driver in a new reliable vehicle, that is also well within the boundaries of the Duty of Care, that all business’s have to be aware of.
Of course the main saving to the driver on one of these schemes is the amount of company car tax they will now save, against the standard income tax they are charged on their allowance given.
Key points of Personal Contract Hire:
Our schemes are offered on brand new vehicles, which are more reliable and covered with a manufactures warranty, and will not require an MOT for the first three years.
All car allowance vehicles will need to be monitored by the company providing the allowance under the “duty of care” that is now very relevant since the corporate manslaughter act 2008
Our vehicles will fall comfortably within these boundaries.
Maintenance contracts can be organised to run along side the funding of the vehicles, enabling the driver to control the costs of his/her motoring throughout the contract.
If you want to learn how we can help you maximise your personal car allowance and need help understanding what all the numbers mean then do not hesitate to pick up the phone today. Call us now on 0845 369 7100.