The following Employment Tax guidance note by Tolley provides comprehensive and up to date tax information covering:
In deciding whether to offer employees a company car as a standard benefit, or in structuring and costing a flexible benefit scheme (see the Flexible benefits schemes ― an overview guidance note), the employer may well need to know in advance how likely it is that the offer of a car will be taken up or whether an alternative should be offered. In addition, now with the OpRA rules (see the Optional remuneration arrangements), the calculation will need to take account of the correct value to be taxed where an option is given to the employee.
The answer to this question is complex and depends on a wide variety of factors. Whilst to some extent it is a matter of the employee’s personal choice, the employer can influence the decision when designing the company car offer or flexible benefits scheme by taking into account the tax and other factors that will be important to the employee in making his decision.
The following issues will affect the attractiveness of the offer:
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