Workplace perks lost in savings drive Employees are losing perks including company cars and dental care as companies cut back on extras to keep costs down without cutting staff. Figures from Revenue & Customs show 250,000 fewer employees received taxable benefits from employers in 2011 than before the financial crisis. The number of workers who drive a company car also fell almost a fifth in the five years to April 2011, from 1.16m in 2006-2007 to 950,000 in 2010-2011. Tax increases and business cutbacks have forced companies to trim traditional perks, said Mike Crellin, principal tax manager at UHY Hacker Young accountancy group. "A difficult trading environment means companies are keeping a closer eye on the bottom line - but it's tax increases on benefits and national insurance that have really made workplace perks uneconomical," he said. The change may have been accelerated by taxation and global economics but it reflects a shift in modern employment patterns, said Neil Latham, principal at Punter Southall the consultant. "Benefits like a company car or a company car parking space have an "80s feel about them," he said. Employment in the 21st century is different - it's more about flexibility and lifestyle. Companies are offering home working benefits or gym memberships rather than tied benefits like cars or accommodation. Towers Watson, the consultant found car or cash allowances remained the most common benefit.