Money Lesson Single

Company car or the cash?

Your employer offers an electric company car or the money instead. The two are taxed in completely different ways, and everyone will tell you to take the cash. Which of them actually leaves you better off?

Employment Vehicle Expenses ISA Savings Account Investments

Take the company car

1 Goal

Drive the employer's electric car and pay the benefit-in-kind tax on it.

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Employment Vehicle Expenses ISA Savings Account Investments

Take the cash allowance

1 Goal

Take the allowance as pay, and buy and run the same car yourself.

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Take the company car Take the cash allowance

Taking the electric company car, rather than the allowance and the same car bought yourself, leaves you ~£416k wealthier: the tax lands on a slice of the list price instead of on all of the cash.