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Company cars on the up?

12 December 2005

  • Number of company drivers has fallen by 300,000
  • Resurgence predicted by company tax experts
  • Safety of employees while driving will prompt rise

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The number of company car drivers in Britain has dropped by 300,000 over the past four years – but a resurgence is being predicted by tax experts Deloitte & Touche.

Since the introduction of the carbon dioxide-based tax system in 2002, the number of motorists driving company cars has dropped from 1.6m to 1.3m.

However, in a report published today, Alison Chapman, head of automotive taxation at Deloitte & Touche, predicts this figure will rise.

Employers have a legal responsibility to ensure their workers’ cars are in a safe condition – even if they’re privately owned – so Chapman believes companies will decide that giving employees company cars will make it easier to ensure they’re being maintained properly.

A number of companies have already settled out of court after failing to ensure the safety of their employees in cars. Health and safety legislation will eventually be tested in court and could force companies to take a more active role in taking care of their workers.

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