More managing directors are opting to take the cash alternative to a company car, according to research from the Institute of Directors (IoD).
The R£wards survey gathered data from more than 3800 jobs in 1200 organisations, and found that BMWs are still the most popular car among directors, along with Jaguars and Mercedes.
Changes to the way company cars are taxed means that this year 42% of managing directors in large companies chose to take the cash, compared with 30% last year. Each claimed an average of £10,400, up from £9000 last year.
The IoD believes we could see further changes in the cars driven by managing directors as the pressure of tax increases.
Peter Patterson, head of transport and energy at the IoD, said: 'The tax system will continue to adapt in favour of cars with low carbon emissions, providing the opportunity for directors to reduce their tax and fuel costs by switching to more environmentally friendly vehicles.'
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