Unsurprisingly, a large portion of UK car sales come from company car fleets. Being able to offer a potential employee the perk of a vehicle is an attractive proposition few would refuse. It could help your business net the best minds, whilst simultaneously it can add to your brand image and appeal. And that’s where the best company cars come in: they combine elegant looks and a professional air, with practicality, space, and comfort. Of course, they also offer low Benefit-in-Kind taxation.
What is Benefit-in-kind (BIK) tax?
Employees who are lucky enough to receive a company car for private use, being allowed to take the car home after work, will also have to pay the taxman the Benefit-in-Kind value. Why? Because the government considers company cars a fringe benefit. The price to pay depends on the vehicle and its CO2 emissions with the figure calculated by taking a percentage of the P11D value (the car’s price, including VAT, delivery charges, and any extras). Whilst it’s best to select the company car you think is right for the needs of your business, the BIK tax can be utilised as a deciding factor to choose between makes and models.
Benefits of giving employees a company car
Thinking of providing your employees with a company car? Here are some of the benefits to consider. Typically, company cars:
- Ensure staff have transportation to the office and any additional working sites
- Are ideal for field-based employment and travelling sales teams with lots of driving from location to location
- Are an excellent recruitment strategy
- Improve employee satisfaction and relations
- Improve company image
- Allow companies to claim Capital Allowances to gain relief on the initial purchase price
- Allow businesses to reclaim VAT on fuel costs
The top 10 best company cars
To provide extra peace of mind and security when driving to and from work, all the cars on this list scored an impressive five stars out of five in rigorous Euro NCAP safety tests. Now, read on to find out our top 10 best company cars.