Who the company car policy is for
A company car policy sets out how the employees may use the company vehicles, how the cost of fuel and repairs is settled, and what the tax consequences are. Without those rules in writing, confusion and inconsistent settlements follow, and for an employee who takes a vehicle home the arrangement may amount to employment income, which an employer sometimes calculates incorrectly.
Company, employee or private vehicle
The first decision is the distinction between a vehicle the employee uses for work only (a company vehicle), a vehicle that may also be used privately (an employee vehicle), and a private vehicle that the employee sometimes uses for work. Each category carries different consequences for VAT, for income tax and for social security contributions. A well drafted policy states which type of vehicle the employees have, how the cost of fuel is settled, whether through a flat rate or against receipts, and whether the vehicles go home.
Price and scope
The fee starts from EUR 1400 net and covers, as an example, a fleet of up to a dozen or so vehicles and one policy. A larger fleet, several vehicle categories or a wider group of users raises the price, and we confirm the fee before the work starts.