The ultimate perk

Even today, it is still regarded as THE status symbol, so it's no surprise that in the hermatically enclosed arena of office politics, it continues to fan the flames of envy.

But then, what's the point of working hard and 'sucking up' if, at the end of it all, you're not rewarded with that 'look-at-how-smug-I-can-be' company car and its associated benefits.

Because make no mistake, the company BMW or Ford Mondeo (if you're stuck in uninspiring middle-management) is still both a perk and a 'hot potato' depending on who is in the driving seat, status-wise.

Fortunately, Swindon-based vehicle leasing company Lex and 'The Rough Guides' company (the travel guides firm which tells wannabe travellers how to see world on £12.50) have got together to produce the ultimate A to Z on the which, what and where of company cars.

Called unsurprisingly 'The Rough Guide to Company Cars 2004' it lists the dos, don'ts and don't-go-nears of company car leasing. According to the guide's writer Peter McSean: "Times change and company cars change with them.

"Two years after an emissions-weighted tax regime was introduced, company cars are now covering 300-400 million fewer business miles per year. They are also smaller, cleaner, better equipped, safer and, more often than not, powered by diesel."

So as far as putting yet another car guide together, editor Peter Knights was keen to stress these latest developments.

"There's nothing worse," he said, "than getting the latest edition of a successful book and finding it tells just the same story as the last one."

And here, aspiring Mercedes Benz E-class drivers, is a brief to some of the guide's indispensable highlights.

So just what is a company car?

The Inland Revenue (IR) describes it as 'a car provided by an employer (including a car under a leasing arrangement) available for 'private use' of a director or employee, or a member of his or her family household. Private use includes ordinary commuting journeys.

In simple terms, if your company provides you with a car and you use it outside of work, including driving to and from work, it's a company car.

Different rules apply for vans. The IR does not count other commercial vehicles, motorcycles and invalid carriages as company cars.

History of the company car

There have been company cars almost since the car was invented at the end of the nineteenth century. Naturally, they weren't called 'company cars' back then, but bosses of car manufacturers frequently drove cars that were officially on their company's books.

The founder of MG Cars Cecil Kimber, for instance, took his family on holiday to the Isle of Skye in an 18/80 Light Six prototype MG in 1928. He called it testing, which it was. Today, the taxman would call it benefit in kind of a company car.

The cult of the company car started in the early 1960s with the improvement of the road network and the emergence of motorways.

Sales reps were able to cover greater distances in a day and were reluctant to do it in their own cars.

The early Ford Cortinas provided many with their first taste of company motoring. But the real catalyst for company cars was the pay freeze of the early 1970s, when an economic crisis prompted the government to restrict wage rises.

Unable to attract and retain staff with pay increases, companies offered them a perk instead, and the company car as we know it today was born.

Oh, and the company car was tax free until 1976.

The future for company cars

There are currently three million company cars on UK roads, and the Inland Revenue predicts a further 200,000 will arrive over the next few years.

Although the company car will be around for the foreseeable future, in what form is another matter altogether.

Essentially it depends on how aggressive or sympathetic the government will be with future tax measures, but one thing is certain drivers will continue to be given incentives to drive smaller, more fuel efficient vehicles, whether company provided or privately owned.

Use of company cars is also likely to change, as practical alternatives to driving become more prevalent and the need to travel is reduced by different working practices and improved communications technology.

Plus, the offer of a cash alternative to a company car has become even more widespread since CO2-weighted tax was introduced on company cars.

Ironically, this practice of your employer offering to increase your salary if you hand back your company car is the exact opposite of the offer that allowed company cars to take root in the first place.

Your typical company car driver

According to research by Claritas UK, company car drivers tend to display to the following characteristics. However, don't be too alarmed if your life and lifestyle aren't featured. It is only meant to be representative.

So, are you sitting comfortably preferably in your car because you are more likely to:

be a home owner

live in a detached house

have two or three children

participate in sport and exercise

be into gourmet food, fine wine and the arts

own more than one pet

travel to Europe, the Americas and long haul destinations

contribute to charity by covenant

have stocks, shares and unit trusts

drive more than 13,000 miles per year

read The Daily Mail, The Daily Telegraph and The Times

What can you drive?

The general rule says the higher up the corporate ladder you climb, the more expensive your company car becomes. But how high do you have to climb to get a £30,000 car?

It's different for every company and individual but here's how it pans out for the average company car driver:

Sales representative £16,000

Middle manager £18,000

Senior manager £28,000

Director £36,000

Chief executive £50,000

Chairman £53,000