We provide company cars to our Sales Manages in order for them to cover their geographical sales territory. The cars are available for business and private use and the company pays for business fuel, maintenance, servicing, cleaning, road tax, insurance, etc. One of our Managers is due to take up a new post working mainly in Europe so the need for a company car is negligible. To avoid paying company car benefit tax, he has requested that the company pay him a cash equivalent in lieu of receiving a new company car. I would be grateful if anyone could provide a formula of all of the factors to be taken into consideration in order to arrive at a reasonable and fair cash equivalent figure to be paid via his salary.
Joanne Jeffery

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