We use cookies to ensure that we give you the best experience on our website. If you continue without changing your settings, we will assume that you are happy to receive all cookies on the Business Car website. However, if you would like to, you can change your cookies at any time
The start point for the best source of fleet information |
Finance directors are unaware of the savings they can make through reducing employees' National Insurance Contributions by incorporating greener vehicles into their companies' fleets.
According to a survey of plus-500 vehicle fleets conducted by fleet management firm ALD Automotive in conjunction with YouGov, 35% of FDs are in the dark about the impact of CO2 emissions on NICs.
In April the NIC rate increased from 12.8 to 13.8%. By offering a choice of lower emitting vehicles and making staff aware of the savings available through leasing greener vehicles, ALD says businesses can generate substantial savings.
However, it also found that only 15% of FDs felt they had a detailed understanding of the costs associated with running their company car fleets.
By switching to more eco-friendly models the Class 1A NIC employers pay is significantly cut. ALD says changing from petrol to diesel on some models could save £355. On a fleet of 500 vehicles the potential cost saving is then £167,500 a year. As a knock-on affect, employees would also benefit from lower BIK.
Follow BusinessCar on TWITTER
BusinessCar magazine ©2019
Business Car Magazine © 2020 | Business Car is part of NS Media Group.
