Personal Lease
In the current tax
climate, having a company car is not the most tax-effective method for
employees. A cash allowance linked to a Personal Lease (PCP) contract is
an effective option.
Under Personal Lease, the employee has no worries about resale values as
the vehicle has a Guaranteed Future Value, which is established at the
beginning of the contract. Usually there are no deposits to be paid and
the service and maintenance option can be included
(See Fleet Management -
Maintenance). Companies still have a
responsibility to make sure that their employees meet all law
requirements at all times.
How Does It Work?
At the beginning of
the contract, parameters for the vehicles usage are agreed and a
Guaranteed Future Value is established. Monthly payments and interest
rates are fixed for the duration of the contract. At the end of the
contract the employee has the option to purchase the vehicle at the
Guaranteed Future Value or return the vehicle back. As long as the
agreed parameters have not changed the employee has nothing to pay.
Schemes
Automotive Management have a range of Money-for-Cars Schemes available
for companies to make sure that effective control can be kept. Companies
with vehicle fleets- Inland Revenue Approved Scheme are available.
Automotive Management Ltd,
Central Boulevard, Blythe Valley Park, Solihull, B90 8AG | 0800 389 6713
|
automan@auto-man.co.uk
