Company cars
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FAQs
It depends on your salary, and the car's value and CO2 emissions (plus electric-only range if you drive a plug-in hybrid). For full details see our BIK company car tax guide.
Choosing a company car is easier than buying privately, but you'll have a wider choice of models if you take a cash allowance and buy or lease your own car. To help you decide, see our company car or car allowance guide.
Electric vehicles make the cheapest company cars, but petrols and (especially) diesels are more suited to high-mileage use. Plug-in hybrids (PHEVs) tread the middle ground on tax. To help you decide, see our electric, petrol, PHEV or diesel company car page.
It's all about choosing the right car – essentially, the cheaper the car and the less CO2 it emits, the less you'll pay. For lots of tips on this, see our guide to cutting your company car tax bill.
The approved mileage allowance payment is the amount you can be paid by your company for miles driven without having to pay tax on it. For full details, see our guide to mileage allowance payments.
Advisory fuel rates are the Government's recommended rates for reimbursing employees' fuel costs while driving a company car on business. They can also be used if employees need to repay the cost of fuel used for private travel. See our full advisory fuel rates guide.
