Chris Thorpe outlines how different vehicles are taxed on employees.
The most common type of vehicle used by employees is a company car, rather than any other type of vehicle.
There is no statutory definition of a car within the direct tax legislation. However, VAT Input Tax Order 1992/3222 defines a car as:
‘any motor vehicle of a kind normally used on public roads which has three or more wheels and either – (a) is constructed or adapted solely or mainly for the carriage of passengers; or (b) has to the rear of the driver’s seat
