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January 21 2009 23:57

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Company car tax explained

Source: Whatcar & Planet Leasing

An estimated 1.5 million people drive company cars in the UK, and these drivers account for more than half of all new car sales each year – most frequently with their company leasing the vehicle.

As a perk of the job, the company car's credentials are clear: the recipient gets a shiny new motor and has his or her servicing, tyres (and sometimes fuel and running costs) paid for.

It's not all good news, though. The Government doesn't miss an opportunity when it comes to taxes - and where there's tax collection, there's a vast list of numbers and phrases that need to be unravelled.

To ensure your company gets the best out of the lease system for itself and its drivers, it pays to know every detail


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