| COMPANY CARS New car tax regime prompts changes to fleet management policies The overhaul of the company car taxation system next year will lead to a move away from company cars and changes in fleet compositions, says a survey by the Institute of Directors and HLB Kidsons, a firm of chartered accountants and business advisers. Nearly half of respondents indicated that they would alter the composition and structure of their fleets. Employers are now more likely to take into account emissions and engine size. Nearly one in five expect to reduce the size of their fleets — often with employees being offered a cash alternative and/or being asked to provide their own vehicle for business use. Key findings of survey The 333-survey looks at how the new company car tax changes that take effect from 6 April 2002 will affect the decisions companies make regarding the size and content of their car fleets and the benefits they offer their employees. The main findings are these:
A final word The implications are that many companies who want to leave their key employees in a breakeven situation or better will have to compensate high mileage drivers either with extra pay or benefits. Alternatively, they will require extra funding to maintain their current car fleet. — Rob Thompson, senior tax manager, HLB Kidsons. Want to know more? Title: Tax and the Company Car: A report in association with the IoD, by HLB Kidsons. Methodology: Postal questionnaires were sent during May 2001. Survey sample: A total of 333 organisations responded. The vast majority of participants (72%) are small or medium-sized organisations with ten to 249 employees. As many as 81% of those represented in the survey have car fleets of 20 or fewer vehicles. Business sectors: Those responding represent a wide range of sectors. Availability: For further information contact Anne Blackie or Tamsin Dickinson at HLB Kidsons, tel: 020 7405 2088 Steve Reardon or Richard Taylor at the Institute of Directors 020 7451 3264. To download a free copy of the report jump to . . . HLB Kidsons is a firm of chartered accountants and business advisers specialising in the owner-managed and SME sectors. The firm has over 135 partners and a network of 25 UK offices. For more information on HLB Kidsons visit its website . . . The Institute of Directors is a non-political organisation with some 70,000 members worldwide, 54,000 in the UK, whose aim is to help directors to fulfil their leadership responsibilities in creating wealth for the benefit of business and society as a whole . IoD publications and policy papers can be downloaded free from . . . Posted 7 September 2001 |