Friday 12 October 2007

Perk Cars Are Back

I'll post more information as it comes, however the tax system is now working favourably to once again offer cars that are not necessarily essential for business!

Imagine a young graduate taking a job on the greasy pole in to corporate world. They need a car to transport themselves to work and back. It may well be more cost effective to take a fuel efficient Company Vehicle and pay say £135/month tax. The same new car could be 3 times this cost on a personal basis! The cost to the business would have to be managed but with the total cost of a reasonable Contract Hire car around £3000/year the right sums can add up. A car is worth £5000 to most people, it's a win-win situation.

Therefore it makes sense to offer a car instead of a pay rise or to tie in the talent in the interview room!

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