A NEXT-GEN Employee Car Ownership (ECO) scheme has been launched by TMC.
Working in partnership with funder Hitachi Capital Vehicle Solutions and tax consultants HRUX/BCF Wessex, TMC says CariQ has been developed in response to the recent legislation on Optional Remuneration Arrangements (OpRAs) and the increasing levels of benefit in kind company car tax.
TMC claims that CariQ enables will enable businesses to:
- provide employees with a structured car scheme that significantly reduces the cost to the employer,
- ensures the employee stays neutral based on what they pay today in terms of whole life costs.
How CariQ works
TMC arranges the ECO funding with Hitachi Capital Vehicle Solution along with the mileage capture, fuel management and audit.
Meanwhile HRUX/BCF Wessex provides the tax advice, scheme advice, vehicle by vehicle, support, the HMRC approval process and the technical payroll adjustments.
BCF Wessex and HRUX will 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. In many cases, only one business mile needs to be driven for CariQ to make savings.
Paul Hollick, Managing Director of TMC, said:
“CariQ gives company car drivers and their employers the option to continue to benefit from a structured car scheme without the punishing and increasing company car tax costs. The employer saves money while the employee is protected from an annual increase in the company car tax they pay. It’s truly win-win for everyone.”
Mike Belcher, Head of Sales for Hitachi Capital added:
“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 that it is important that any solution that a company puts in place needs to be able to adapt as legislation and the market place 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.”