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A company car is a vehicle owned, leased or paid for by the organisation that is used by an employee for his or her work.
Cost is a common factor in the determination of company car provision, but many other factors may be involved, such as frequency of business travel, regular and overall business mileage levels, carriage of tools, samples or equipment. Employers must keep clear records of cars and drivers, including records of list price, carbon dioxide emissions (for tax purposes), maintenance, wear and tear (for duty of care) and driver details (eg penalty points, insurance claims).
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