company car

How to Implement an Incentive Pay Scheme

How to Implement an Incentive Pay Scheme

There is no better universal motivator for employees than extra pay, and with a smart incentive pay system you can reap the productivity rewards in your business. Put simply, money talks. This article explains how you can implement a well-thought-out incentive pay system in your own business, including whether you should use cash or shares, and how to implement such a scheme. Read on to find out more. How do I set objectives for an incentive pay scheme? You should always have a goal in mind when designing an incentive pay scheme. When setting objectives, ask yourself: What results do I want to achieve? As with any business objective, your goals should be ‘SMART’ (specific, measurable, achievable, realistic, time-limited). Perhaps you might set a sales or revenue target, or try for improvem... »

Funding a Car through Salary Sacrifice

Funding a Car through Salary Sacrifice

Funding a new car under a salary sacrifice scheme has many benefits to the employee and can be achieved with minimal cost and disruption to an employer. In brief terms, it is an arrangement put in place by an employer as an employee benefit whereby the employee agrees to give up part of their pre-tax salary – or ‘sacrifice’ it – in exchange for leasing a non-cash benefit such as a car. It is not intended as a replacement for a traditional company car scheme. While benefit-in-kind tax is payable by the employee on the car based on its list price and carbon dioxide emissions, this is often substantially lower than the income tax the employee would have paid on the salary sacrificed. And unlike a personally funded new car, a car provided under salary sacrifice includes all the traditional ben... »

Business Mileage:  VAT Fuel Recovery

Business Mileage: VAT Fuel Recovery

For many business owners, motoring costs represent a significant proportion of their firm’s expenditure. As fuel prices have recently climbed to unprecedented levels, reclaiming VAT on car fuel is an ideal way to recover some of these draining costs. However, it is imperative that this process is carried out correctly as this is often one of the first areas that a VAT inspector will study when reviewing your accounting records. If you pay a mileage allowance to your employees for business journeys made in either their own vehicle or a company car, you can reclaim VAT on the fuel element of those mileage payments. How it works: Private vehicles The mileage allowance for private cars is 40p per mile for the first 10,000 miles and 25p per mile for additional business miles driven in the same ... »

Company Car Tax Guide

If you make a car available to your employees and it is available for private use (including commuting), your employees have to pay tax on the benefit of this. In the same way, they have to pay tax if you provide free or subsidised fuel for private use in that car. Where these benefits are taxable, employers and other providers (but not employees) are liable to pay Class 1A NICs. In general, the benefit charge is lower for cleaner and cheaper cars. This is to encourage you and your employees to choose cars which are less damaging to the environment. This company car tax guide guide provides information on how the benefit charge is calculated. This Company Car Tax Guide – Crown Copyright © 2012 »