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Readers' forum : Beneficial cars?

02 May 2017
Issue: 4597 / Categories: Forum & Feedback

Are there circumstances in which a company car can still be advantageous?

I act for a builders’ merchant business that pays mileage allowances at HMRC rates to employees. Some of these employees do little if any business mileage so the amounts paid as motor expenses are minimal. However some of them are sales representatives and they drive many thousands of miles for business each year visiting suppliers and existing and prospective customers.

The business owner advised me recently that some of the employees had been suggesting that they should have company cars. Although he would like to maintain a happy workforce his initial thought was to avoid the hassle of having to purchase and maintain more vehicles. However if there is a compelling economic argument he may be persuaded. Alternatively if there is an equally compelling argument that company cars no longer make economic sense for either employer or employees this may be helpful to dissuade the staff...

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