Your tax questions answered
Below are the 1 database entries on the subject of Employment.
Which is better, a company car or a car allowance?
This is one of the most common questions we are asked. Unfortunately, it is one of the most difficult to give a definitive answer to.
The problem is the number of factors involved, many of which have little to do with taxation.
The way to make your decision is to add up all the net cost to you of both options, throw in factors such as the convenience of a company car against the benefit of actually owning the car, and see which you prefer. This is something only an individual can answer.
However, have a look at the other questions here, as well as our calculators, and they should help you reach a conclusion.
Please see also our Mileage Expenses and Car Benefit calculators.
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