UK Companies Embracing Environmentally Friendly Company Car Programmes: Survey Findings
Are you considering reviewing your company car programme in the next 12 months? If so, you’re not alone. According to the latest Company Car Benefits Survey Report by Willis Towers Watson (WTW), a third of UK companies planning to review their schemes are looking to introduce more environmentally friendly vehicles.
The shift towards sustainable vehicles is being driven by a combination of factors, including the more favorable tax band regime on low CO2 vehicles and the immediate tax write-down available for electric vehicles. In fact, the tax advantages of salary sacrifice schemes for electric vehicles are significant, with employees only paying 2% in company car tax in the current tax year, rising to just 5% by 2028. This is in stark contrast to the high rates of up to 37% for more polluting vehicles such as some diesels.
Many companies are recognizing the importance of adopting more environmentally friendly policies and behaviors, not only to align with best market practices but also to reduce costs. The WTW report highlights that almost half of organizations have introduced a ceiling on CO2 emissions, and a majority allow sales professionals and managers to select electric or hybrid vehicles as part of their schemes.
In addition to introducing more sustainable vehicles, companies are also taking other measures to support eco-friendly behaviors among employees. This includes paying for electricity for employees who charge their electric vehicles at home, financing the installation of charging points at employees’ homes, and providing on-site car charging points at the workplace.
Furthermore, a commitment to environmental sustainability is reflected in benefit offerings that encourage eco-friendly behaviors. For example, a significant number of UK organizations offer cars as a benefit under a salary sacrifice agreement, and many also offer a bikes-for-work scheme.
Lori Stokes, rewards data intelligence lead at WTW, emphasizes the importance of aligning with more environmentally friendly behaviors and taking advantage of government tax relief schemes to shift towards electric, hybrid, and low emission vehicles. This not only helps companies achieve their environmental objectives but also contributes to cost savings.
If you’re interested in staying up to date with the latest HR news and guidance, consider signing up for the Personnel Today Direct e-newsletter. And if you’re looking for HR job opportunities, be sure to check out the latest listings on Personnel Today.
Overall, the trend towards introducing more environmentally friendly vehicles in company car programmes is a positive step towards achieving multiple company objectives. So why not join the movement and make a greener choice for your company car scheme?