Company car tax explained - An introduction

An estimated 1.5 million people drive company cars in the UK, and these drivers account for more than half of all new car sales each year.

As a perk of the job, the company car's credentials are clear: the recipient gets a shiny new motor and has his or her servicing, tyres (and sometimes fuel and running costs) paid for.

It's not all good news, though. The Government doesn't miss an opportunity when it comes to taxes - and where there's tax collection, there's a minefield of numbers and phrases that need to be unravelled.

Welcome, then, to whatcar.com's guide to company car tax.

Read on as we unravel how the tax system works, how you can cut your bills and which are the most tax-efficient cars.