Market & Business

Company Car vs Car Allowance: How Does It Work? | loveelectric

Issue No. 101 Jul 2026
Company Car vs Car Allowance: How Does It Work? | loveelectric
Illustration generated for THRIVE

Cash allowance versus company car remains the wrong binary for EV-minded fleets, according to Loveelectric: salary sacrifice still strips out Income Tax and National Insurance in a way a taxed cash lump sum never can. The Chancellor has redrawn some of the rules, but the operator's read is that the changes bite less than the headlines suggested, with the bigger reset not landing until 2029. That gives fleets a real window to lock in savings now rather than defaulting drivers into allowances out of caution. Anyone benchmarking take-home pay across the two routes should factor BIK rates and grant eligibility into the comparison, not just gross cost.

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