Introduce a car scheme

Key points

  • Employers may choose to offer a company car or a car allowance to employees.
  • An employer that is introducing a car scheme will need to consider various aspects of car provision such as the choice offered to employees, mileage allowances and restrictions on the use of the car.
  • Provision of company cars and car allowances is almost invariably restricted to particular individuals or employee groups - generally associated with seniority or the nature of the job.
  • Employers should understand the tax implications of providing a company car or car allowance to employees.

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