Recent Budget necessitates vehicle funding review, says ALD
According to ALD Automotive, the many changes introduced by Chancellor George Osborne last month may well impact upon how companies fund their vehicles.
Helen Fisk, manager of the AutoSolutions specialist division at ALD, said: 'It is crucial that vehicle funding processes are reviewed. Next year’s VAT increase coupled with changes in capital allowances, corporation tax rates and National Insurance increases will change the cost parameters for both employers and employees.
'Our initial analysis would suggest that the changes will strengthen the financial standing of traditional company car provision, which includes salary sacrifice. However, only by taking the total cost of ownership approach will companies be able to identify potential funding operations and then be able to truly justify them to employees.'For more of the latest industry news, click here.