‘Total cost of ownership’ refers to the total amount it costs a fleet manager to own a car over its lifetime. Things to take into consideration include the car’s purchase or rental cost, its residual value, servicing and maintenance costs and tax liabilities.
You’re liable for company car tax if your company car is classed as a ‘Benefit-in-Kind’ – meaning the car has been provided by a company and made available for your private use.
The rate payable is based on the vehicle’s CO2 emissions, the type of fuel the car uses, the income tax rate you pay and the vehicle’s P11D value. The P11D is a form submitted to HMRC detailing the value of the vehicle for tax purposes.