Company car use grows for first time since 2015-16

The total number of company car users in 2022-23 was 760 000 up 40 000 from the previous year – the first rise since 2015-16 according to government statistics. However the total taxable value of company car benefit was lower than in 2021-22 at £3.6bn compared with £3.95bn.

The number of recipients of fuel benefit remained at 50 000 although there has been as steady decline from 240 000 in 2011-12. HMRC suggests that the shift towards electric powered cars explains this drop at least in part with fully electric cars accounted for 29% or 222 000 of company car users.

Diesel cars continue to follow a decline accounting for 23% of company vehicles in 2022-23 down from 80% in 2017-18.

Noting that there are government incentives on the use of electric vehicles as company cars Ian McMahon partner at UHY...