1813 Club and Premier Members

The unexpected cost of Covid-19 on company cars

An unexpected downside of the coronavirus pandemic is that the disease has hit the pockets of company car drivers. According to tax and audit firm

Crowe, company cars have spent the last year sitting unused on driveways – but their employee drivers are still being taxed for having them. And Crowe tax partner Richard

Bull believes it may be the right time to think again about company cars. Mr Bull, who is based at the firm’s Midlands office, said: “As we enter a new financial year, it could be a good time to look at your company car policy afresh. “The company car has always

been seen as a major management perk, but as most have been parked on the drive for the last 12 months, the benefit has been minimal.” Employees are still taxed on the

benefit in kind for whichever kind of vehicle they drive and many are unsure if the sums still work in their favour, he added. “When managers and directors

were covering many miles a year, there were clear benefits such as not having to pay for servicing,

companies, and low benefit-in-kind rates for employees. “Employers can pay for charging

points at their employees’ homes and there is no benefit-in-kind charge for the employee and the company gets a full tax deduction.

‘Employers should be asking whether now was the right time to go electric’

“The same 100 per cent write off Richard Bull: car perk is parked up

brakes and tyres as well as the company paying for fuel. “However, with the pandemic

having a significant effect on the use of these vehicles, as well as other factors, such as the Birmingham Clean Air Zone coming into force on 1 June 2021. There is much to reconsider with company cars.” He said that employers should

be asking whether now was the right time to go electric with 100 per cent first year allowances for

against company profits applies if the company installs charging points at work. If employees choose to charge their cars at work, they can do so, again without any benefit-in-kind issue. “We know from speaking to

clients that many company directors have been thinking about moving their fleet across to electric, and I think now is the time to move this topic to the top of the agenda.” He added that it was a complex

subject with factors such as environmental considerations and the company’s image and reputation, as well as financial issues all to be considered.

Action needed on sustainability

Family businesses in the UK risk falling behind other countries in their commitment to prioritising sustainability, according to findings from PwC’s latest ‘Global Family Business Survey’. While more than half (53 per cent) of UK family

businesses surveyed believe they have a responsibility to fight climate change and its related consequences, only a third (33 per cent) have developed and communicated a sustainability strategy compared to the slightly higher global average of 37 per cent. The survey reveals 79 per cent of respondents in mainland China, 78 per cent in Japan and 49 per cent globally report ‘putting sustainability at the heart of everything we do’ compared to 39 per cent in the UK. Neil Philpott, PwC Midlands family business leader,

said that UK firms needed to show more commitment to ESG (environmental, social and governance – or sustainability) by taking meaningful action. He said: “A commitment to a wider social purpose

has always gone hand in hand with family business in the UK, but there is growing societal pressure from employees and business stakeholders to demonstrate more meaningful action around sustainability and wider ESG issues. “Listed companies have started to respond, but our

survey shows that UK family businesses have a more traditional approach to social contribution such as contributing to the local community or philanthropy. “At a recent round table with Midlands family

businesses, there was a clear message coming back from business leaders, that while most recognised the

strategic importance to them, there was a real breadth in how developed their planning was, ranging from some with an integrated plan in place for their business, to others with a blank sheet of paper in front of them, challenged by where they should start. “The Covid-19 pandemic has shown UK family

businesses remain resilient in the face of a crisis, underlined by the efforts they have made to retain staff, provide extra help for employees and make financial sacrifices. “With society slowly moving towards some kind of normality, family businesses will look to build on their digital capabilities, while managing family dynamics and looking to invest in more sustainable business practices.”

Neil Philpott: More ‘meaningful’ action needed

In brief

St Paul’s Square-based corporate hospitality specialist Eventmasters is to sponsor the entire card at an evening event at Worcester Racecourse next month. The fixture – on 15 July -

will be named The Race Night and will include seven races. Eventmasters sales

manager Stuart Parsons said: “While this is the first event we have staged with the Racecourse, we hope it will become an annual event as we have had a terrific response from our clients with five of the seven races already taken.”

Midlands-based hospitality group Caviar & Chips is to create more than 50 new jobs as it recovers from lockdown. Caviar & Chips, founded by

Jonathan Carter-Morris and Marc Hornby four years ago, was originally a wedding catering company but has since expanded. It has bought a 16th Century

pub in Warwickshire, an 18th Century boutique wedding venue in Shropshire and the firm is now busy reorganising the 100 weddings it would have catered for last year.

Birmingham based Intercity Technology, has appointed Christina Pendleton to the role of ‘chief people officer’. Ms Pendleton has risen

through the ranks at Intercity, having joined the organisation as an HR adviser in 2014 before being appointed to the Board of Directors as head of people and engagement last year.

She said: “I’m very excited to be taking on this new role.”

Training provider In-Comm Training has launched a new campaign to boost the number of apprentices taken on by UK businesses. In-Comm Training has launched ‘Equip the Recovery’ to help more employers look at investing in apprentices by removing some of the barriers. The firm has committed to

creating an additional 200 positions for young or mature learners between now and September and is asking businesses to get involved by creating roles.

June 2021 CHAMBERLINK 37

Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72  |  Page 73  |  Page 74  |  Page 75  |  Page 76