Finding solutions to our customer challenges
Our existing customer of many years turned to us to enhance their car benefit scheme, with the aiming of making it more employee focused. With the cost of living continuing to rise, the company was keen to improve the benefits they offered.
Our client decided to introduce a banded structure for drivers, which lowered the monthly car repayments for all eligible employees. The business makes a contribution to repayments, how much depends on the role of the employee, it’s higher for directors and heads of department to reflect their seniority. However, technicians also receive a larger contribution, as this acts as a retention tool for a job role that can often be difficult to retain.
Drivers are all in Employee Car Ownership Scheme (ECOS) cars, but each band is tailored to the specific job roles that fall into each band category. ECOS remove Benefit-in-Kind (BiK) tax for employees and Class 1A National Insurance Contributions (NICs).
By introducing a contribution, the company have lowered employees repayments, and in many cases have reduced that repayment to lower than company car tax would be for a comparable vehicle. In addition, the business has still made savings from the Class 1A NICs that ECOS removes even with the added repayment contribution, which has really made this solution a win-win for everyone.
All employees who have a CBS car are company car entitled drivers and this hasn’t changed for the time being, even under the scheme updates. However, the company is looking into the possibility of rolling out the benefit to all staff.
Do you want a fleet solution than can offer:
- A banded structure for employees.
- A retention tool by making a contribution to lower employee repayments.
- An enhanced benefits package.
- Business savings.
Get in touch to discover how we can enhance your employee car benefits.
