COMPANY CARS

The Company car, for so long the dream of the employee, for so long the nightmare for the employer.

Today, the taxman has taken the gloss off the company car from the employee's perspective, but it still remains an attractive proposition to staff who would otherwise not be able to afford a new vehicle every few years.

So should you offer your staff a company vehicle?

Well, in our opinion the answer depends on two key questions:

1. Does the employee have to drive a significant distance in the execution of their job?

If they do 10,000 miles pa or more, you should provide them with a vehicle. This is cheaper and helps you to fulfil your health and safety responsibilities to your employee.

 -otherwise-

2. Do my competitors offer this level of 'perk' to the equivalent job-holder?

If the answer is yes, you have to consider whether you want to protect your key staff from the temptation to join a rival. However, remember that once given, cars are difficult to withdraw, and that nothing fuels resentment in other staff more than seeing a bright shiny car in the car park every morning.

You may decide to compete on salary rather than offer a 'perk' car, but if you are going down the company car route, follow the links on this page to get some expert information and advice.

You could share your thoughts on 'cars' with other business people.
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