The number of company cars on UK roads has remained at the same level for the past two years, according to latest statistics compiled by HM Revenue and Customs (HMRC).
The newly-published provisional figures for the 2013/14 tax year reveal that benefit-in-kind tax was paid on a total of 940,000 company cars.
While that total represents a 10,000 car decline on 2011/12, it suggests numbers have stabilised after a steady decline since the company car peak recorded in 1999/2000 when 1.16m people paid BIK tax on their vehicles, according to HMRC.
The data also reveals that the number of people paying BIK tax on fuel used privately has also declined further.
In 2013/14, there were 200,000 employees paying BIK on fuel, compared to 220,000 in 2012/13 and 240,000 in 2011/12.
Tax experts have said for many years that the vast majority of employees would be financially better off paying for fuel used privately out of their own pocket.
Meanwhile, there was again a sharp decline in the number of employees paying tax on mileage allowances in excess of the tax-free Approved Mileage Allowance Payment (AMAP) rate.
HMRC apportioned the reduction to 290,000 employees in 2013/14 from 320,000 in 2012/13 and 380,000 in 2011/12 to rising fuel prices during the period.
The number of employees paying BIK tax on vans increased from 60,000 to 70,000 from 2012/13 to 2013/14, and company fuel used privately in vans remained unchanged, according to the figures.
For further analysis and insight, see next week’s Fleet News.