Fleet News

Cash-for-car options back on agenda after Budget

COMPANIES are being urged to examine their fleets closely to decide whether they would benefit by offering a cash-for-car option to their drivers. Chartered accountancy firm Kingston Smith says that companies should investigate carefully the effect of Gordon Brown's March Budget and its impact on their fleets.

The firm provides a £47 service to help employers and fleet drivers look at the financial options and to examine the best potential fleet acquisition policy. Last month's Budget was widely believed to have failed to act as a catalyst for company car drivers to opt for personal motoring schemes because essential car users covering more than 18,000 miles a year bore the brunt of the tax rises, yet these are the least likely to convert to private vehicles.

Meanwhile the main targets for personal motoring schemes - those who drive less than 2,500 business miles a year -were relatively unaffected But Chris Lane, a partner in Kingston Smith, said: 'In many cases, the employee and the employer would be better off if the individuals owned the car themselves.'

Leave a comment for your chance to win £20 of John Lewis vouchers.

Every issue of Fleet News the editor picks his favourite comment from the past two weeks – get involved for your chance to appear in print and win!

Login to comment


No comments have been made yet.

Compare costs of your company cars

Looking to acquire new vehicles? Check how much they'll cost to run with our Car Running Cost calculator.

What is your BIK car tax liability?

The Fleet News car tax calculator lets you work out tax costs for both employer and employee