Company car tax guide

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From how it works to which car to choose, this is our ultimate guide to company car tax.

If your employer pays for all your fuel, including private journeys, then this is another taxable benefit.

One different way of running a car through your employer is a salary sacrifice scheme. In return for a new car, you agree to take a lower salary, so you pay less income tax and National Insurance. However, the car is still deemed a benefit by HMRC, so you'll still pay tax on it. Rather than seeing salary sacrifice as an alternative to a company car, it's really a company car with slightly different tax arrangements.

 

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