A LEADING firm of accountants has hit out at companies' failure to offer staff remuneration alternatives to the company car. KPMG questioned senior fleet decision-makers at more than 250 companies on the eve of the publication of the transport white paper, and found that 81% of employers offered some members of staff a company car.

Overall the survey underlined the importance of the company car in staff benefit packages, with 95% of large businesses (£20 million plus turnover) running company cars, and 74% of small companies (less than £5 million turnover). A quarter of the cars were allocated only to 'essential business users', while 54% were offered according to the employee's grade. The survey also discovered that only 13% of companies offer employees a cash alternative to a company car, and that fewer than a quarter of these aimed to fully compensate employees for the loss of their car.

Leslie Farrar, KPMG's employee issues tax partner, said: 'While the company car is still regarded as a substantial perk by many employees, the fact is that the tax bills have rocketed over the last 10 years and those employees who would choose not to have one could easily be offered some form of suitable financial compensation.'