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Cash Allowance

Some companies have moved away from any form of car provision, relying instead on cash allowances for their car-entitled employees. Whilst this strategy has the benefit of ease of management, it is generally either too generous for employees who drive only a few miles, or insufficient for those who drive a lot. It can also be a concern in terms of Occupational Road Risk.

For occasional business drivers, or where the company culture requires it, the cash allowance can be adopted as part of the optifleet system, and drivers managed alongside other options. These can vary according to mileage profile, and may completely utilise available AMAPs (HMRC Approved Mileage Allowance Payments) in their most tax efficient form.