Business Transport
Choosing a van for business
Investing in a van for your business transportation is an expensive decision that is often taken without enough consideration and forethought. Firstly, you need to think about the size of the van you need and estimate the size and weight of the loads you are likely to be carrying, and vitally, consider the number of times you may need to carry large, heavy loads where you could use a carrier if this is limited to a few times a year. You should also note if, and how often you will need to transport your goods abroad and almost certainly there will be benefits of outsourcing to a shipping company such as Alliance Shipping. [Read More...]
Contract Taxi services for business
Some companies will provide lease cars for their employees who regularly need to travel though many just give travel expenses for less regular car usage. Some companies are now finding it much more economical to use local contract taxi services to provide for efficient and effective travel for key staff. If staff use their own cars to take them to the train station or airport, for example, the cost of car parking for the period whilst they are away can be very high. Using a contract taxi company the business will be offered a car with driver –allowing them to work on their notebook or laptop whilst travelling and keep up with important messages or presentation preparation. Cars can be booked to take staff to meetings or deliver important documents that require signing for example, and such contract taxi services will also accept bookings by email/smartphone, phone calls or by website. The benefit to the company is that it gains additional effectiveness from key staff, assures punctuality and stress free travel . Companies should not only check out a range of taxi services to investigate if they offer the quality of contract hire required, but also ask for a trial period to ensure that not only are the vehicles up to the standard required but also the drivers are suitably experienced. It is possible to compare the cost of contract taxi usage for travel as compared with dealing with difficult to regulate travel claims
Company cars and small businesses
Changes in the law regarding company cars has meant that in the majority of cases it is no longer tax efficient for businesses or individuals to have a company car paid for through the company. Basically the tax the individual will have to pay depends on a number of factors: the highest tax rate of the individual, the original retail price of the car (up to a limit of £80,000) even if bought second hand, the CO2 emission rate of the vehicle (with a 15% charge on cars emitting less than 145g/km and rising to 35% for those with emissions more than 240g/km. The amount when calculated by the inland revenue is likely to be several thousand pounds and this amount will have to be paid to them every year, even more if the business gives the employee any fuel benefits. It is obviously not attractive to employees or employers to carry these costs. Larger companies able to make the investment of more expensive, greener cars may find a balance of costs, but this is unlikely for the small business owner.
It is usually more efficient to pay a car cash allowance, which means that employees drive their own car and receiving a mileage allowance – the Inland Revenue Authorised Mileage Rate. This currently stands at a rate of 45p for the first £10,000 miles and 25p for any miles over that amount, These rates are tax free, but do not cover any mileage for commuting to the place of work.
