Company car schemes aren’t keeping pace with modern work patterns, according to a survey by Sixt UK which showed three quarters (75%) of employees are using their own vehicles for business trips.
Covid-19 lockdowns and corporate sustainability targets have had a marked effect on business travel in recent years, with the Office for National Statistics claiming 41% of the UK workforce is now working from home either part or full time.
Meanwhile, 42% of UK businesses surveyed by the Department for Transport reported using video conferencing to cut business travel and CO2 emissions, and 40% were allowing staff to work from home to achieve the same goal.
In turn, 48% said remote working had reduced some of their business travel, with an additional 15% saying it had replaced most journeys and another 4% eradicating those trips completely. This reduces the need for traditional company cars, which tend to be given to employees who travel regularly.
Although the number of company car drivers is growing – up from 760,000 in 2022/23 to 840,000 in 2023/24, according to the latest HMRC data – that’s influenced by the growth of salary sacrifice schemes, where drivers pay for the monthly rental cost and don’t need regular business trips to qualify.
There were 191,297 salary sacrifice cars on British Vehicle Rental and Leasing Association (BVRLA) members’ fleets in Q2 2025 – a 118% year-on-year increase. However, not all employers offer them, and drivers must be able to afford the rentals without their remaining income dropping under the minimum wage threshold.
SIXT UK’s survey backs this up. Whereas 75% of drivers are using their own vehicle for business trips, only 20% have a company car, while short-term rentals (8%), shared vehicles (8%) or their employer’s pool fleet (6%) were even less widely used.
With less control over what drivers are using, ‘grey fleets’ can be a challenge for employers, while clashing with sustainability, duty of care and corporate image requirements.
Drivers are also encountering problems, with 56% of survey respondents claiming that using their own car had led to lost productivity, with insurance and administrative headaches ranked as the most common frustration – by 21% of drivers.
Meanwhile, 70% said the resulting expenses claims had left them out of pocket. HMRC allows employees to claim 45p per mile if they use their own car for work. That rate is designed to cover insurance and wear and tear as well as fuel, but it hasn’t been adjusted since April 2011.
According to SIXT UK, those challenges are fuelling demand for alternatives such as its car subscription service. This enables employers to book cars on a rolling 30-day basis, with the cost including everything except fuel. However, only 1% of surveyed drivers said they had access to these vehicles.
Businesses account for 67% of BVRLA members’ car rental business, a spokesperson for the organisation told Autocar. They’re primarily used to cover short-term projects, fill gaps while waiting for company cars to be delivered, or while vehicles are being repaired. Small and medium enterprises (SMEs) account for half of that volume.
Andrew Smith, managing director of SIXT UK, commented: “Businesses need flexible mobility solutions rather than relying solely on traditional fleet models. Addressing this will boost employee satisfaction, improve operational efficiency and deliver a strategic competitive advantage in today’s flexible work environment.”
By
