What is WLC modelling?

WLC modelling is a relatively straight forward concept. In calculating the actual cost to the business of running any vehicle, all elements of the company's expenses are considered including leasing costs, maintenance and insurance.

These upfront costs are then additionally analysed from a tax perspective considering recoverable/non-recoverable VAT, actual VAT recovery, Class 1A NIC charges, business mileage reimbursement rates and potential corporation tax adjustment.

These direct and indirect costs are then combined to provide businesses with a genuine analysis of the cost of providing company cars to employees.

Why do these indirect costs impact car selection?

In recent years, changes to the tax system have resulted in greener, more efficient vehicles attracting significantly reduced tax and NIC charges whilst significantly penalising employers providing more heavily polluting vehicles.

What about employee satisfaction?

From our experience, employers adopting WLC modelling are able to generate a genuine win/win scenario in obtaining significant cost reductions whilst also enhancing employee choice and satisfaction.

Greener, more efficient vehicles are no longer the territory of city cars alone with all major manufacturers racing to ensure they comply with European legislation requiring their average car sold to produce no more than 95g/km of CO2 emissions by 2020.

How much are the company savings likely to be?

Our experience of implementing WLC policies with employers is that besides providing a valuable cost control framework for the company car fleet, there is also the potential for substantial cost savings by moving away from the existing upfront cost based policy.

Our work on existing projects is currently generating on average, savings to the business in excess of £1,000 per car per year.

For further information please contact the Cobia team on 0845 226 0580 or email info@cobia-uk.com