If you run your business as a Limited Company, you may run your car through the company. This has Income Tax, National Insurance and VAT implications for the company and the driver. Independence allows you to record the company's ownership of vehicles and their allocation. This information is then used to pay over the VAT (if petrol is supplied for private use) when the VAT Return is completed, and the Class 1a National Insurance Contributions either with the payment to Inland Revenue in July, or by the Alternative Payment Method.

You can see what your tax liability will be on various values of car using the illustration provided (Income Tax liability is reported on Form P11d and your code is adjusted).