This leaflet provides a short guide to the tax treatment of company cars. It reflects the changes introduced from 6 April 1999.
Private use includes ordinary commuting journeys.
A car made available by a third party will also count as a company car if it is provided by reason of the employee's employment. Motor cycles, invalid carriages, and vans or other commercial vehicles are not 'company cars'. Your earnings for this test include your wages or salary, payments for business expenses and the value of benefits such as the company car and private medical insurance. The term 'employee' is used to cover both directors and employees throughout the rest of this leaflet. The amount on which employees have to pay tax is referred to as the 'car benefit'.