A company car is a vehicle provided by a firm for the business and private use of an employee. This is because your company car is considered a ‘perk’ paid for by your employer on top of your annual salary and as a result has an indirect financial benefit.
Should I be entitled to a company car?
There is no automatic entitlement to a company car. This would be between you and your employer, so if you have a company car it should be clearly stated in your written employment contract as an express term. Sometimes, rules about vehicles are found in a separate vehicle policy or staff handbook.
What makes an employee qualify for a company vehicle?
Qualifying for a company vehicle. Employees may qualify for a company vehicle if they drive [number] miles or more per year for work purposes, need a company vehicle for their daily work, or are supposed to receive the use of a vehicle as a benefit.
Can a company employee drive their own car?
These employees will either need an exception to use their own personal vehicle, or they’ll be stuck with a car that doesn’t quite meet their needs. Many companies allow their employees to drive corporate vehicles outside of work, without insight into how often employees are using the vehicles for business vs. personal reasons.
What can you do with company provided cars?
With fleet vehicles, you not only choose the car, you also manage employees’ insurance and upkeep of vehicles. You’re able to choose any safety features that you find important, and you can also install telematics to track vehicles and gain 24/7 insight into where your cars are located.
Which is the best option for company cars?
If the employee receives the benefit in their capacity as an employee, it’s liable. One possible option is novated leasing – a potentially cost-effective alternative to managing a fleet of company vehicles. A novated lease involves a three-way agreement between the employer, the employee and a leasing company.
