What’s allowed for car allowances?

Car allowances are usually offered as an alternative to providing a company car giving flexibility of choice for employees and the promise of simplified administration for employers. Recent HR and benefits benchmarking surveys suggest that most companies offer a car allowance in some form. On the face of it providing a car allowance appears to be relatively simple. However when you look at what is required to operate a fair compliant and straightforward policy the picture is not so clear. In this article we look at the income tax and NICs treatment and the impact of a recent Upper Tribunal decision which may help reduce costs associated with employees driving for business.

Note that...