How having a car from the company where you work affects the tax you pay?

Question

How having a car from the company where you work affects the tax you pay?

Answer 1

In all likelyhood it will wipe out your personal tax allowance. Financially, unless you do lots of business miles its rarely worth it.

You could negotiate a payrise instead and use the money to finance a car yourself.

Answer 2

Yes you will need to pay what they call a benefit in kind tax charge, there is a calculator on www.hmrc.gov.uk website that calculates how much you will pay, you need to know the tax cost, emissions of the car etc...  

Answer 3

The days when a company car was a income tax avoiding perk are gone. The Tax Man takes the view that although you may need the car to do your job you also have the benefit of it for your private motoring so it is considered as additional income in kind and liable to tax.