Company cars remain attractive benefit, says leading fleet manager

By / 11 years ago / Latest News / No Comments

That was the message from ACFO director Caroline Sandall at a recent ACFO fleet briefing held in association with Motorexpo, the world’s largest free-to-visit motoring event.

Sandall outlined how cars had become an increasingly common feature on the menu of benefit options provided by employers to their staff.

Referring to the previous tax system, she said: ‘Many employees have an 11-year-old view of company car tax.' She added: 'Many employees that may not have had a company car for several years are unclear of how today’s tax system operates.’

Sandall said that today’s range of low-emission cars now available from manufacturers and a Benefit-in-Kind tax system that rewarded the uptake of such vehicles mean that it can be cheaper for employees to have a company-provided car than to run their own.

Cars, from an employer’s perspective were, said Ms Sandall, an "attractive benefit" to offer staff which not only could be a key employee recruitment and retention tool, but could also help reduce organisation’s carbon footprint and boost their occupational road risk management focus as such vehicles were easier to manage than so-called "grey fleet" cars.

An increasing number of employers are offering salary sacrifice car schemes and Sandall said they potentially offered organisations the opportunity to create cash savings compared with the cost of salary.

She concluded: ‘Benefit provision is expanding all the time and now commonly includes some form of car provision.’ 

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Natalie Middleton

Natalie has worked as a fleet journalist for over 20 years, previously as assistant editor on the former Company Car magazine before joining Fleet World in 2006. Prior to this, she worked on a range of B2B titles, including Insurance Age and Insurance Day.