Leasedrive predicts move back to company cars
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Leasedrive Group, the largest independent privately-owned vehicle management group in the UK, predicts a significant move back to company cars in 2006 and beyond.
Commercial director, Roddy Graham said: "On two counts, we believe that there will be renewed popularity for the company car. First, companies are becoming increasingly aware of their duty of care responsibilities. Fuelled by concerns over potential corporate as well as individual director liability, companies are favouring a return from employee car ownership schemes (ECOPS) and cash-for-car schemes to operating company cars. Only a properly controlled ECOPS can provide directors with the reassurance that 'at work' drivers using personal transport are driving properly maintained and insured vehicles. Second, the government will inevitably try and claw back lost revenue from Benefit in Kind (BIK) payments from the company car."
In fiscal terms, the loss of revenue to the Treasury of the BIK payments from the company car is significant. In 1999/2000, the government received £1,850 million from company car drivers while the latest figures show only £1,640 million being collected by HM Revenue and Customs (HMRC).
"The Chancellor could make a frontal attack on opt-outs in some way, levying a form of disincentive, which could draw users back to the revenue-generating company car. While we thought this quite unlikely in the past, a good Scotsman will always get 'his' money and, with a couple of think-tanks investigating the problem, it is only a matter of time before they restore the £210 million shortfall to HMRC," concluded Graham.
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Leasedrive Velo is the largest independent privately-owned vehicle management group in the UK and comprises two main operating divisions.
Leasedrive Velo Vehicle Management
Working in partnership with fleet managers, or delivering a complete outsourced service, Leasedrive Velo offers blue chip clients a range of bespoke fleet management services. Major investments in the finest asset management system and pioneering, flexible, web-based customer service technology have resulted in Leasedrive Velo offering customers a truly world class fleet management service capability.
Leasedrive Velo Rental Management
One of the largest short-term vehicle rental management companies in the UK, with access to an almost unlimited choice of vehicles and locations throughout the country, Leasedrive Velo Rental Management offers a simple and transparent pricing policy with no hidden surcharges. For rentals of 28 days or more, it offers the Stopgap mid-term vehicle rental solution. Rates are substantially reduced compared to daily rental.
The headquarters for Leasedrive Velo is at hi-tech offices at TRL in Wokingham. Leasedrive Velo is the winner of the 2006 Fleet News Award for 'Best Contract Hire/Fleet Management Company', the 2006 GreenFleet Award for 'Leasing/Rental Company of the Year', The 2006, 2007 and 2008 Thames Valley Business Awards for 'Business Management Team of the Year', the 2007 ITM Award for 'Independent Vehicle Management Company' and the 2008 ITM Award for 'Fleet Management Company'.
For further press information on Leasedrive Velo, contact:
Mr Jeremy Snook
JSPR Ltd
Telephone: 01488 670002
Mobile: 07957 867139
Facsimile: 01488 670008
E-mail: jeremy.snook@jspr.co.uk
Website: www.jspr.co.uk
