The Electric Car and how it can help the care sector

Where once upon a time the company car was a sought-after perk to stimulate the car industry in the UK, over time the tax rules tightened with each successive government and thus the company car benefit fell out of favour.

However, the rise of the electric car with its new Benefit in Kind regime for employees, and tax deductions for the employer, is increasing in popularity, and is helping to retain key staff members and reduce carbon footprint in the care home, domiciliary and supported living sectors.

When it is time to look at the expenditure for the year ahead, considering an electric car is another area which demonstrates a greener travelling option as well as reducing the cost of fuel.

Note that the employer does not have to be a company as the name suggests, the favourable benefit in kind rules apply whether the employer is a sole trader, a partnership or a limited liability partnership.

From a cash flow perspective, the employer can purchase the car outright or enter into a lease, with the advantages and disadvantages of both purchasing options to be taken into consideration.

In a challenging recruitment climate for the care sector, as an employer, the provision of a company car could be something that draws key individuals to your business and encourages them to stay.