Home Business Insights & Advice Providing a company car to employees: What to consider

Providing a company car to employees: What to consider

by Sarah Dunsby
3rd Jan 23 4:04 pm

Planning on providing a vehicle for your employees? A company car is a major and important decision to make and one that needs to be carefully considered. This is a car that will have an impact on employee well-being and morale, but you will also find that the vehicle will represent your business so you want to create the right kind of message. Keep reading to find out a few key considerations when buying a company car.


First, it is helpful to be aware of some of the benefits. A company car is a great perk for employees, so it can be helpful in terms of improving morale and helping staff to feel valued. It also means that employees always have a method of transport and can have a less stressful commute each day. In addition to this, a company car can also be an advert for your business, so you can impress and improve your reputation when you have a company car provided that you choose wisely.

While buying and running a car will obviously be an expense, you will find that there are also financial and tax incentives to having a company car.

The car itself

You need to careful and consider the vehicle that you provide for staff and ensure that it is fit for purpose, safe and properly insured and taxed. Keep in mind that you have a legal duty of care towards staff under the 1974 Health & Safety at Work Act, so you need to prioritize safety and keep the car in the best condition. During the winter months, this could include switching to winter tyres so that your employees can drive safely and with confidence in winter.

Low emissions

Another important consideration is the vehicle emissions. It is important to be eco-friendly to reduce environmental impact and to develop a positive reputation, so it is a good idea to choose a car with low emissions. In addition to being eco-friendly, you will also find that this is helpful financially as cars with lower emissions pay less tax. You might want to consider an electric car as a way to keep your costs down and also improve your green credentials.

These are a few of the key areas to focus on when deciding on a company car for your employees. There are certainly many benefits to providing a company car for your employees, but it is also a big financial decision to make and one that could impact your business in a few ways, so you want to take your time and choose the right car.

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