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.
