Norwich and Peterborough Building Society will end its traditional company car policy and offer its 200 drivers a cash allowance. The move will help drivers avoid paying company car tax under the emissions-based system from April.
Almost a quarter of the firm's company car drivers cover more than 18,000 business miles a year and so are most at risk of an increase in their tax bill under the company car tax system, as business mileage discounts disappear.
Under the new structured scheme, cars will be funded through a cash allowance and drivers will be reimbursed for business mileage. Alphabet will offer drivers three-year contracts with 45,000, 60,000 and 90,000 mileage options through its Alternative Car Scheme. Drivers will be able to choose from Audi and Volkswagen cars and any vehicle within the Ford family, including Land Rover, Jaguar and Volvo. So far, 120 drivers have opted for the scheme with 15 drivers choosing to take the cash allowance.
Malcolm Brown, the N&P's human resources director, said: 'We want to provide our drivers with the best value, highest standards and greatest freedom of choice at a budget which fits their circumstances.'
Mike Baldry, Alphabet chief operating officer, said: 'We have protected the drivers from the increasing tax burden associated with driving a company car without compromising the quality of car services available.'