Personal Contract Purchase, also known as PCP, enables the individual, rather than the organisation, to lease a vehicle over a set period of time and with fixed monthly costs.
This type of scheme means there is no Benefit In Kind taxation to pay and the driver has a greater level of choice, as they can trade up or down from their current company car level and pay more or less per month as appropriate.
The employer can benefit from a reduction in the gross cost of providing drivers with a vehicle. However this is strongly influenced by the make up of the fleet and in particular the number of business miles conducted by a driver. Generally speaking, drivers need to be in the 10,000+ business miles bracket for this to be an effective choice.
To find out whether you should offer a Personal Contract Purchase scheme, call us now on 0845 1084521 and we can help you make the decision that’s right for you.
