Company car number stable despite reports of decline, says Fleet Alliance
08 July 2019
Author: Sean Keywood
Demand for company cars is stable, with recently-published statistics showing a decline explained by changes to the way data is collected.
That's according to fleet management and leasing company Fleet Alliance, which has responded to BIK figures recently revealed by HMRC.
These show a provisional 50,000 drop in the number of company car recipients in 2018-19.
However, HMRC said that an increase in voluntary payrolling may account for a significant proportion of this decline, with this alternative reporting method not yet included in its current statistics, and this is a view that Fleet Alliance is supporting.
Fleet Alliance group managing director Martin Brown said: "The number of company cars has remained consistent despite repeated stories about its demise and the talking up of alternatives that sidestep BIK company car tax.
"It should be remembered that the 940,000 company car recipients pay an average of £1,650 each into the Treasury's Exchequer and contribute positively to funding welfare, health, pensions and education in the UK."
Brown said that company car demand had remained stable despite uncertainty over future taxation, the so-called demonisation of diesel and availability issues affecting ultra-low emission vehicles.
He said: "HMRC statistics suggest the company car remains a stable benefit, a fact reflected in our own managed fleet which has grown during the year to 37,000 vehicles worth £1 billion.
"We believe the company car will continue to play a significant role as we move towards greater electrified vehicle availability."