Envirodrive™ Tax Efficient Car Scheme

EnviroDrive™ is a scheme highlighting the significant benefits of promoting a wide range of low emission company cars to employees. The tax efficient scheme offers various cost saving and environmental benefits to the employer and its employees by taking advantage of the reduced 10% and 13% Benefit in Kind (BIK) tax brackets introduced by the Government in April 2008. All vehicles offered through the EnviroDrive™ scheme have CO2 emissions of 120g/km or less, which fall into these two tax brackets.

To further maximise tax and cost efficiency EnviroDrive™ can be delivered through a salary sacrifice programme. By maximising the tax planning opportunities available, the employer can deliver the company car benefit to the employee at zero cost to the company.

Employees have the option to sacrifice part of their salary in return for an EnviroDrive™ company car. The cost of the car is then deducted from the employee's gross salary, before statutory deductions, allowing them to save income tax and National Insurance (NI) contributions. Further savings can be made through improved fuel efficiency of the vehicles offered and fully comprehensive insurance provided by the employer.

Unlike traditional company car and Employee Car Ownership (ECO) schemes, EnviroDrive™ can be launched with no cost to the employer, due to the full cost of the car being met by the employee and the scheme being managed entirely by Leasedrive Velo. The scheme also addresses important Duty of Care issues for the employer by ensuring that grey fleet drivers use safer, well-maintained vehicles that are covered by the employers' insurance policy.

Nigel Underdown, head of transport advice at the EST, predicts: "Implementing a green fleet policy could save an organisation with 50 cars up to £45,000 every year. In addition, companies in the business-to-business sector won't get far when tendering for big contracts unless they can prove their environmental credentials."

The recent trend for businesses and employees looking to reduce CO2 emissions and control costs looks set to increase dramatically over the coming years. EnviroDrive™ is the ideal solution for providing smaller, more fuel efficient and lower emitting vehicles as a cost effective benefit to both employers and employees.

Key Features - Employer

  • Zero cost when operated through a Salary Sacrifice scheme
  • Reduced risk to the company
  • Cost savings through reduced fuel consumption
  • Cost savings through reduced NI and BIK tax contributions
  • Valuable recruitment and retention tool for HR and employers
  • Reduced carbon footprint across the fleet
  • Improved corporate social responsibility (CSR)
  • Enhanced Duty of Care benefits

Key Features - Employee

  • Company Car benefit at a fraction of the expected cost
  • Reduced monthly NI and BIK tax payments
  • Improved fuel efficiency
  • Choice of two or three year contract
  • Fully comprehensive insurance provided by employer

System

Leasedrive Velo offers an internet/intranet capability allowing employees access to regular promotional offers and the ability to compare and order vehicles online 24 hours a day, 7 days a week. The EnviroDrive™ scheme is also supported by e-mail, poster and leaflet campaigns and regular driver clinics and roadshows.