Fleet News

Fleet200: Tax incentives steer trend back towards company cars

The following article was published in the September 24 issue of Fleet News. Read the full article.

The future of the company car has long been a subject of debate and disagreement in the fleet industry, and it doesn’t look like that discussion will be settled any time soon.

Ever-increasing tax bills for both employers and employees, uncertainty over future benefit-in-kind (BIK) tax rates and the rise of personal contract hire (PCH) and personal contract purchase (PCP) deals for retail buyers have been among the key reasons why growing numbers are opting out of company car schemes.

This year’s Fleet200 research found 78% of respondents offer company car drivers the choice of opting for cash, and it does appear popular. In total, these 62 fleets have 22,654 cash allowance takers between them.