The Benefits of Providing Company Cars to your Staff
Business, Tips and Ideas

The Benefits of Providing Company Cars to your Staff

When it comes to running a business there are hundreds of business decision to make almost every day. The main aim of any business is to make a profit and when you’re running the business there is a lot of pressure to make sure that it is successful. If you make the wrong decisions causing the business to fail it isn’t just your livelihood that is affected but you’ll be responsible for your employees losing their jobs too. This is why managers tend to think any decision they make through very thoroughly; most decisions have both pros and cons so it is up to the manager to call the shots. One business decision many managers or owners don’t think about is providing company cars to their staff. On the surface this seems like an expensive decision to be made that wouldn’t provide enough benefits to be worth the cost, however, studies among companies who have provided their staff with company cars show that there actually are many benefits.

Why should I provide a company car?

A company car is a car that an employer provides to their staff, not just for business related use but for personal use too. This may seem like a bad idea to some employers as they expect employees to have their own cars but we’ve discovered many benefits. The first benefit is that it is seen as a job perk to be provided with a company car, if you’re providing them then it will be more appealing to potential candidates to take up a job with you than with your competitors. If you’re nervous about trusting your employees with a company car because of things like accidents etc then you can check up on this by using websites like

Is there schemes for providing company cars?

Yes! If you’re providing a car to an employee that is in a permanent role at your company, you can take advantage of the company car scheme. There are several other criteria’s that need to be met including that your employee must be earing at least minimum wage. When you provide a company car through this scheme it is seen as a privilege so it is recorded as a benefit in kind for your employees, this means that your employee will be taxed on this car. How much they get taxed depends on various things like carbon emissions and how old the car is. On top of this there are various rules around tax and fuel consumption so make sure you check these out too when deciding whether to provide company cars.

What are the main benefits?

As well as the car benefitting you by being a great recruitment incentive, there are many more benefits associated with this decision. As the car is rented through the business, your employees have no personal liability associated with it as it is up to the company to deal with any maintenance it requires and MOT obligations. Another benefit is that now a day you usually have much more choice of what car you want, employers will have a pre-approved list of cars that are available and you can choose from that list. This gives your employees the opportunity to minimize how much tax they’ll have to pay by picking an environmentally friendly car. The only big downside to providing a company car is that your employees won’t ever own the car, if any of them were to leave, you would keep the car and so they could find themselves in a difficult position without a car once they’ve left.