UK business advisory firm Deloitte has hatched an innovative scheme to get its employees to go green: fuel-efficient company cars.
The program will rent cars at nearly half price to all 12,000 employees. In addition to being affordable, the cars, which include Peugot and Ford Fiesta hatchbacks, have CO2 emission levels of 120g/km or below–and that means tax relief under new UK company car tax rules going into effect in April.
According to the new tax rules, cars with CO2 emissions above 160g/km (6.5 oz/mile) will receive a 10% writing down allowance, while those at or below 160g/km will get a 20% allowance. And until 2013, companies that buy cars which produce less than 110g/km of CO2 can write off the full cost of the cars within three years.
So Deloitte saves money, employees get a break on car rentals, and the environment wins out in the end. Here’s hoping other large UK businesses look to Deloitte’s plan for guidance–and maybe the U.S. will adopt a similar incentive.