Company cars

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FAQs

How much do I pay if I have a company car?

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.

Is it worth having a company car?

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.

Should I choose a petrol, diesel, hybrid or electric company car?

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.

How can I keep my company car tax bill low?

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.

What are approved mileage allowance payments?

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.

What are advisory fuel rates and how do they work?

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.