CHANGES in benefit-in-kind taxation have driven some company directors and middle managers out of their company cars, but more middle managers are opting for Britain's favourite employee benefit. A survey from the Staffordshire-based Reward Group - 'Sales and Marketing Rewards 1997' - suggests that the 1994 introduction of a company car tax system based on the list price of vehicles has prompted the changes.

The survey shows that 75% of directors received a company car this year compared to 82% in last year's survey; 85% of senior managers against 83% last year, senior/middle managers 73% (75%), middle managers 68% (66%), middle/junior managers 57% (58%). The survey also shows, for the first time, that respondents drove more German badged company cars than any other make. German marques were driven by 21% of respondents and Ford took a 20% share followed by Vauxhall on 18%, French manufacturers on 15%, Rover on 9% and Japanese manufacturers on 6%.

The survey also reveals that downsizing has failed to take off. The move away from a company car tax system related to vehicle engine sizes has resulted in a drop in employees opting for cars up to 1.6 litre and significant rises in cars of 1.6-2.0 litre. In 1990 8% of company cars were up to 1.4 litre compared to 4% this year, 29% were 1.4-1.6 litre compared to 8% this year, 16% were 1.6-1.8 litre compared to 29% this year and 36% were 1.8-2.0 litre compared to 43% this year.l