Leasing to your employer

imeddyhobbs

The company i work for hires 12 of vans from northgate vehicle hire(AKA shams)My boss was telling me that they(our company) are considering propositioning staff to get their own vans and the company would pay us for the use of that van,apparently their is a tax loophole for both a company and the individual in this case?
Has anyone any knowledge of this kind of arrangement?
Would it be worth buying a van to take up this opportunity ?

crosstownk

Maybe the company should investigate other leasing companies beforehand. If Northgate are not satisfactory there are plenty more leasing companies who would be glad to get a 12 van fleet on the books.

I can't see how your company will be able to 'insist' that staff buy their own vans - unless the staff in question are on short term (e.g. yearly) contracts and they change the terms of the contract later. If they do manage that amazing feat then it can work 2 basic ways. 1. The staff are given an agreed mileage allowance (cent per mile) to cover all running costs of the van or 2. Each employee with a van submits receipts for every expense relating to the van and is reimbursed at regular intervals. Both optoins (or versions of) will mean more work for admin staff and the drivers of the van - the real headache will be for the admin staff.

TBH, the best option for a 12 van fleet is to lease them with contract maintenance - let the leasing company have the admin work - which is what they should be experts at. Most decent fleet leasing companies can offer contract maintenance which will provide 24 hour roadside assistance, replacement vans during servicing, accident management, fuel cards, road tax, tyres, etc. And your company's admin department only have one account to deal with rather that 12 staff expense/mileage accounts. And don't forget that, with the leasing option, your company/employees won't have the difficulty of disposing of the vans at end of life.

Esel

propositioning =/= insisting.