Successive hikes in the amount of tax payable in respect of a company car mean that the provision of a company car is no longer the tax-efficient perk that it once was. However, it can still be a tax-efficient benefit, particularly if a low or zero-emission model is chosen.

People do not drive company cars simply to beat the tax system – it is in the interests of employers to ensure that their employees drive cars that are reliable, safe and respectable (as well as insured, taxed and legal). For many employees with time-consuming roles, the provision of a company car means that there is one less distraction to worry about.