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Old Dec 18, 2007 | 07:58 PM
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Ginge, the "deal" set out by the government on company vehicles, commercial or not, is you lose £3000 worth of tax free income. So, if your tax code states you get, say, £5225 of tax free income, this is reduced to £2225. Take another £500 off that for fuel tax, you now are only allowed £1725 of tax free income. So in essence, you pay MORE in tax every month. So if you were paying 23% tax, you are now paying 25% tax... Follow me?

Now, a lot of companies also charge a "fee" or "contribution" for company vehicles. Mine is £21.50 a month.

But the £10 and £80 a month is neither here nor there, as what I am talking about is the tax levy on tax free income due to the new company vehicle rules.
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