Transitioning from Company Cars to Car Allowances: How to Handle Tax, Purchases, and Business Use?

Dear All,

We are planning to do away with the company cars and give employees a car allowance as per grade. This will be provided only to some employees. Can anyone send me a draft copy of the same, or let me know the following?

1. Will this car allowance be taxable?
2. Should the employees be given a special amount for buying the car?
3. How do we include business purposes, such as when they meet clients/customers? How do we reimburse them for that? (e.g., fill a form and all)

Regards,

Any luck on the Car Allowance Policy? We are planning to introduce this benefit for our company and need clarity.