Employers have 3 big reasons to encourage company car drivers to choose a car
with lower car tax. After basic salary, company car tax is likely to be the largest
factor in determining net pay and tax.
Through following a path to lower taxation, the company car fleet will also tend
to produce less pollution as a consequence.

Improve employee's take home pay

This is obvious, but for many employees who begrudge paying tax on a car which is required
for their job, it is less obvious how they go about finding out about the implications of the
new tax regime. Comcar can help them choose the best car for their needs, with the minimum
tax. Many company car drivers will not be able to opt out for the cash alternative because their
job requires it, or they see difficulties in managing the problems of financing, maintaining and
insuring their own vehicle. For those who see the company car as a mixed blessing, Comcar can
be a useful tool in providing the information to improve the mix.
A car chosen now could be subject to increasing levels of company car tax over the next three
years. Since April 2003 those drivers with free private fuel will also see that benefit taxed
according to the car's co2 emissions.

Reduce Employer's National Insurance costs

Class 1A NICs are calculated using information reported on P11Ds . If drivers are helped or
encouraged to choose cars with lower tax, there will be a large saving on the fleet's Class 1A
NI bill. With the increase of Employers NI to 12.8% in 2003, this saving will become even
more important. Fuel scale charges will also depend on the car's emissions levels from 6.4.03.

Reduce car running costs

Generally the total costs of cars will vary in line with the tax . This is a broad assumption,
but largely true because cars need to run more efficiently to achieve a lower emissions rating.

Contact sales@comcar.co.uk if you would like passwords for your fleet drivers at a corporate
discount. This could help to save a lot of National Insurance contributions, as well as relieve
an administrative burden on those responsible for providing information to drivers.
Alternatively we can provide a customised search programme that narrows the choices within
your company car policy. Instructions and passwords can be emailed out to drivers a month
before they have to choose a new car. If you don't want to bother with passwords, a private site
can be linked to your company's intranet with all the key features included, and unwanted
distractions will be excluded.