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If you’re an employee being offered a company car or van, then congratulations because it can be a great practical benefit. However, before you say ‘yes’, make sure you take the time to understand what it means for you, your finances and responsibilities, so read on.
A company vehicle is a car or van owned or leased by a business and used either by the owner/director of the company or given to an employee for their use. A company vehicle can be given to an individual or else provided as a pool car or van for several employees to use. It can be given as a necessary tool for the employee to be able to do their job, or in recognition of an employees’ status or contribution to the business. A company car or van can be provided for combined business and private usage or else only for business use.
A ‘company vehicle’ can be offered by any type of employer - not just a ‘company’. Types of businesses that typically offer company vehicles include sole traders and other types of self-employed persons, Limited Liability Partnerships (LLP), charities, embassies, local or government Authorities as well as Limited Liability Companies (LTD) and Public Limited Companies (PLC).
A ‘company car or van’ is usually given for combined business and private usage but can sometimes be given exclusively for business use.
NB: The benefits and taxation rules are the same for employees as they are any company director being given a company car or van, therefore where the term ‘employee’ is used, this includes reference to any company director being given a company car/van.
A company car or van offers employees the following great benefits:
As an employee, there are responsibilities to be aware of however if you take a company vehicle:
Do also consider the following factors if you’re being offered a company vehicle:
If you'd like to speak with our friendly team about business vehicle leasing, simply call 0118 920 5130 or email us at: enquiries@selectcarleasing.co.uk
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