Leasedrive VELO

Leasedrive predicts move back to company cars
8 December 2005

Leasedrive Group, the largest independent privately-owned vehicle management group in the UK, predicts a significant move back to company cars in 2006 and beyond. 

Commercial director, Roddy Graham said: “On two counts, we believe that there will be renewed popularity for the company car.  First, companies are becoming increasingly aware of their duty of care responsibilities.  Fuelled by concerns over potential corporate as well as individual director liability, companies are favouring a return from employee car ownership schemes (ECOPS) and cash-for-car schemes to operating company cars.  Only a properly controlled ECOPS can provide directors with the reassurance that ‘at work’ drivers using personal transport are driving properly maintained and insured vehicles.  Second, the government will inevitably try and claw back lost revenue from Benefit in Kind (BIK) payments from the company car.” 

In fiscal terms, the loss of revenue to the Treasury of the BIK payments from the company car is significant.  In 1999/2000, the government received £1,850 million from company car drivers while the latest figures show only £1,640 million being collected by HM Revenue and Customs (HMRC).

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