[Closed] Can somebody explain company car tax to me?

Depending on the car's CO2 emissions, you get taxed a certain amount for it. ie you'll be paying more tax than you otherwise would but you do get a 'free' car for it.

https://www.gov.uk/calculate-tax-on-company-cars

Depending on how much you use the car, what car you want/need and what other rules are in place, it may be better to take the allowance (eg extra salary in effect) instead of the car.

Have a look here

http://cccfcalculator.hmrc.gov.uk/CCF0.aspx

FWIW, I pay around £90/month for a 2l diesel Mondeo without private fuel

Mate of mine has a company car and every renewal he considers whether to take the cash but as he needs car 2 days a week for work trips visiting clients he calculates its worth it. I used to take the money as I was happy with 2-3 year old cars. if you like new and none of the hassle of repairs/insurance etc then company car makes sense, you have to "value" those things too and not just compare tax paid vs lease cost.

This explains it and gives you the rate for pretty much any car. Very handy.

http://comcar.co.uk/

I take the cash, because the cash pays for my own car finance payment and servicing, tyres etc. And as of this month, the car is mine and I pocket the cash.