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A company car offers lots of positive benefits including:

  • You're not personally tied into a financial contract
  • Insurance, servicing or maintenance worries are covered by the employer
  • There’s no depreciation costs as you never own the vehicle
  • Benefit in kind (BIK) tax rates are usually a fraction of the car’s final cost
  • You get to drive the a new model every three or four years

There is not a “one size fits all” answer when it comes to deciding between a company car or company car allowance. As with most aspects of driving, this is a personal decision based on your individual circumstances such as your personal needs, financial situation and other tax liabilities. That is why it is important to research both options before making a decision either way.


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