New guide to policy design for company cars

COMPANY CARS

New guide to policy design for company cars

IDS has published a new guide on company cars, investigating how fleets are financed and the policies covering allocation. It also offers an in-depth look at the three key factors driving company car policies: cost containment; health and safety; and environmental considerations.

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What you will find in this report

The report by IDS discusses the various ways fleets can be financed and the policies covering allocation:

  • Looks at the key aspects of company car policies for job need and status drivers

  • Helps you understand finance options - including contract hire and outright purchase

  • Investigates employee car ownership schemes

  • Discusses eligibility for a company car

  • Reviews the allocation of both job need and status cars

  • Considers renewal periods

  • Provides an overview of the rules on trading up or down

  • Covers the cash alternatives

  • Shows business mileage rates

Format

This report is divided into two main sections:

1. Analysis

The key issues in company car policy design:

  • Method of acquisition

  • Employee car ownership schemes

  • Taxation of company cars

  • Taxation of mileage allowances

  • Job need cars - eligibility; allocation; renewal periods; trading up or down; cash alternative; free fuel for private use; business mileage rates; charge for private use

  • Status cars - eligibility; allocation; renewal periods; trading up or down; cash alternative; free fuel for private use; business mileage rates

  • All-employee car ownership plans

  • Reducing the company's carbon footprint

2. Company practice

Details of the company car policies - covering job need and status cars - at 23 organisations:

  • Acco Brands

  • Arval UK Group

  • AstraZeneca

  • Bethell Construction

  • Bombardier Aerospace Shorts

  • BT

  • Centrica

  • Clarks International

  • Hannaford

  • IBM UK

  • International Paint

  • Kodak

  • Logica

  • National Grid

  • Next Retail

  • Royal London Group

  • Serco

  • Shell in the UK

  • Thomas Cook UK & Ireland

  • Total UK

  • Vista Retail Support

  • Wolseley UK

  • Yell

Want to know more?

Title: “Company cars”, IDS HR Studies 919, June 2010.

Availability: IDS HR Studies is a fortnightly journal and online service analysing employers' HR policies, procedures and practices. For subscription enquires contact customer services, tel: 0845 600 9355. To subscribe online click here.

Incomes Data Services is the “leading UK information and research service on employment issues, providing a range of publications for employers, trade unions, government departments and other agencies”. For more details visit www.incomesdata.co.uk.