CariQ employee car ownership scheme launched
17 August 2018
Author: Sean Keywood
TMC has announced a new employee car ownership scheme, in partnership with Hitachi Capital Vehicle Solutions, HRUX and BCF Wessex.
CariQ is said to have been developed in response to recent legislation on Optional Remuneration Arrangements (OpRAs) and ever-increasing UK company car tax.
It enables firms to provide employees with a structured car scheme at significantly reduced cost to the employer, whilst ensuring the employee stays neutral. It is based on what they pay today in terms of whole life costs.
TMC measure the mileage capture, fuel management, audit, and arranges the funding with Hitachi; while HRUX and BCF Wessex provide tax advice, scheme advice, vehicle-by-vehicle support, the HMRC approval process and technical payroll adjustments.
BCF Wessex and HRUX will also work out the break-even point for each car in terms of the annual business mileage that needs to be driven to ensure CariQ makes cost savings.
It is claimed that, in many cases, CariQ can make savings after only one business mile.
The product also involves ERA Fleet Cost Management, which will support the holistic programme by providing support with vendor stewardship and management.
TMC MD Paul Hollick said: "CariQ gives company car drivers and their employers the option to continue to benefit from a structured car scheme without the punishing increasing of tax costs.
"The employer saves money whilst the employee is protected from an annual increase in the company car tax they pay. It's truly win-win for everyone."
Hitachi head of sales Mike Belcher said: "The continuing rise of company car taxation, coupled with the recent regime changes with WLTP and OpRA means that both employees and employers need a viable alternative.
"The pace of change also means it is important that any solution that a company puts in place needs to be able to adapt as legislation and the marketplace evolve.
"We are very excited to be a part of this product launch, having successfully run schemes of a similar vein for the past seven years."