The driver can switch the engine power output between 2 wheels and 4 wheels.

Anti-lock Brake System. This feature ensures that a vehicle`s brakes do not sieze up when the driver needs to stop quickly. If the brakes lock then skidding is likely to occur.

Any accessory, or set of accessories costing £100 or more (including fitting and VAT) will be added to the calculation of the car's price used in arriving at the BIK. Unfair as it may seem, the accessory value will apply for the full period of the first year.

Most employers have realised that providing fuel for private use is not a tax-efficient perk. As a result many employers offer a useful sum to buy back this benefit.

Insert an estimate for the calculator to show the post tax value of the free fuel perk.

Short for All Wheel Drive. Power to all the wheels is controlled all the time. Sometimes a vehicle computer will switch the percent of power fed to each of the wheels but the drive system cannot be switched manually and so is always on.

Benefit in kind is treated similarly to gross pay when it comes to income tax. A value has to be put on the benefit, and the Inland Revenue provides rules for most cases.

The boot capacity is the boot capacity plus any extra space created by putting rear seats flat

Here are some example sizes (October 2008)

• Mercedes-Benz C-Class Estate (910)
• Volkswagen Polo (952)
• Audi A5 Sportback (980)
• Peugeot 508 Saloon (1381)
• Vauxhall Meriva (1496)
• Vauxhall Zafira Tourer (1860)

To qualify as such for tax purposes, the car must be at least 15 years old at the end of the tax year, and have a market value of over £15,000

Any car made available to an employee for private use, whether owned,leased or rented by the company.

Cars over 160gms will be more expensive to lease from April 2009

Disabled drivers who hold a blue badge and need automatic transmission can calculate their company car benefit by using both the lower CO2 emissions figure and the lower list price of the equivalent manual version. The price element was introduced from 6th April 2009, but the CO2 reduction has always been available to disabled company car drivers.

Hatchbacks on estates or other vehicles are counted as a door, even if not intended as a human entry point. Saloon bootlids are not counted. Doors are normally glazed in the higher portion.

Audi`s Direct Shift Gearbox transmission allows for gearlever or paddle changes, as well as automatic mode. Motors take the place of a conventional torque convertor so that there is no loss of performance or economy.

Electronic Brake Assistance. Detects emergency situations and makes braking faster and more powerful.

Electronic Brake-force Distributer. This feature will dynamically adjust the braking applied around a vehicle to suit its current weight distribution. This helps braking when on a corner, for example.

Figures provided to one decimal place. A good indication is usually given by the car description, but some makers such as BMW are confusing when the model number such as 320 indicates a 3 series, but not necessarily a 2 litre

Electronic Power Steering. This feature provides assistance to the driver when turning. It is included as standard on most modern cars.

Electronic Stability Program or Electronic Stability Control.

ESP/ESC compares the driver's intended direction in steering and braking inputs, to the vehicle's response, via lateral acceleration, rotation (yaw) and individual wheel speeds. ESP/ESC then brakes individual front or rear wheels and/or reduces excess engine power as needed to help correct understeer (plowing) or oversteer (fishtailing).

Diesel cars meeting the Euro IV standard will not be subject to an extra 3% tax charge (compared to petrol) if registered prior to 1st January 2006.( EU4 is another abbreviation used)

Electric Vehicle

Imperial measures still seem to be used despite fuel being sold in litres. The official EU Combined test figure is commonly used, but don't expect this in real life.

Currently £55 and generally included in the delivery charge, but not taxable as a benefit in kind.

On 15th October 2012, average national fuel prices were

• Diesel:143
• Unleaded:139
• Super unleaded:146
• LPG:75

(figures given in rounded pence per litre)

Petrol, diesel or alternative are the main choices. On the P46 these are split further into D for Diesel, E for Electricity only, and A for everything else.

Front Wheel Drive. The engine power is directed to the front wheels of a vehicle to make it move.

The load volume is the volume of the vehicle's boot with the seats in the upright position

Here are some example sizes (October 2012)

• Toyota Yaris (272)
• Renault Megane Hatch (372)
• SEAT Exeo (460)
• BMW 3-Series Saloon (480)
• Vauxhall Insignia Hatch (530)
• Skoda Octavia Estate (605)

Motorists driving into the central eight square miles of London will be charged £8 day. Discounts are available on cars running alternative fuels and vehicles with 9 seats or more.

Long Wheel Base. This refers to the distance between the front and back wheels of a vehicle. Sometimes manufacturers offer a variety of lengths on a single model. This abbreviation is used to help differentiate between them.

Transmission requiring the driver to use a clutch and gear lever .

Benefits are added to your taxable income, and so will always be taxed at your highest rate. NI ignored here.

Employers can set whatever level they like. The tax free element is usually set annually . Employees can claim up to 40p taxfree for the first 10,000 business miles and 25p thereafter. Should these levels be higher than actually paid by the employer, the

During September several manufacturers revise their model ranges and print new brochures. Prices and specifications may also change. The new models are then described as the following calendar year`s number. Sometimes the changeover is far from clearcut

Taller than estates, but definitely not vans, MPVs are built to carry 5 to 8 people in comfortable upright seats, sometimes at the expense of luggage space. Most people think of an MPV as being able to seat 7, but small cars seating 5 at a squeeze are also called "MPVs" if they have a high roof.

Built to travel over rough ground, such vehicles have four wheel drive capability and higher ground clearance. The less capable, but more comfortable, versions are now known as SUVs

Employees paying tax will receive a Pay As You Earn tax coding notice whenever their allowances and benefits change. The calculated value for Car Benefit will be shown on the right hand side.

Always includes gross salary but employers will often exclude bonus payments and car cash allowances when determining the level of salary on which pension contributions are to be calculated.

A pool car is not taxable on an individual provided it is confined to business use, and any private use is purely incidental. The car should be available to and used by more than one employee, and should not be taken home.

PS (Pferdestarke) is the near metric equivalent of BHP (brake horsepower). You need to divide PS by 1.0139 to convert to BHP. The site may use the PS value in the BHP field if the manufacturer supplies figures in that style.

Where gears can be changed via buttons or paddleswitches on the steering wheel.

Rear Wheel Drive. The engine power is directed to the rear wheels of a vehicle to make it move.

Include the driver`s, and substantial fold out seats. Number of seats will be the same as the number of 3-point seat belts.

Company car drivers should not be taxed on servicing costs, so if future servicing costs are paid for at the initial point of purchase, make sure that this element is not included in the list price for tax purposes.

Sport Utility Vehicle. On road/ off road automobiles.

Short Wheel Base. This refers to the distance between the front and back wheels of a vehicle. Sometimes manufacturers offer a variety of lengths on a single model. This abbreviation is used to help differentiate between them.

Traction Control System. It regulates power distribution to stop the wheels just spinning and wasting power when you put your foot down, which gives you extra control, safety and performance.

A type of automatic gearbox which aims to give drivers the ability to change gear manually, or can be left in various automatic modes.

The Vehicle on hire certificate (VE103) should be carried by all drivers of company cars,if the original V5 is not available, when travelling abroad.This includes trips to the Channel Islands and the Isle of Man. A letter of authority and photocopy of the V5 will not be adequate if you run into trouble.

Abbreviation for Vehicle Excise Duty, payable annually or six monthly, and dependent on the fuel type and CO2 emissions . Also known as Road Fund Tax. Should be included in 'On the Road' car price, but not treated as part of the benefit-in-kind.

Any additions or modifications, that have to be made to a car in order to make it suitable for a disabled company car driver to drive on business, are not subject to company car tax. This extends to the transmission and covers the list price and CO2 effect. Therefore a disabled driver (holding a blue badge and needing an automatic car) will be taxed on the manual equivalent if the price and CO2 are lower.