COMPANY car tax was already difficult to understand, but changes revealed for 2015/2016 have complicated matters further.

Let us clarify what’s changed and how it will affect you.

So what is company car tax?

Let’s picture the situation; you’re in the lucky position of being offered a company car. Well, in the eyes of Her Majesty’s Revenue & Customs, that car is thought to be a perk on top of your normal salary and as such, is subject to tax.

So it’s as easy to pay this tax as the annual road fund licence then? Er, no, sadly it’s way more complicated than that. As although CO2 emissions are a factor, your company car’s price, the amount of optional kit it has fitted, the fuel type and how you pay for it are also taken into consideration.