I take a cash allowance from my employer and have taken a PCP through a local dealer. What tax will I pay?
From 6 April 2017 the rules changed for drivers who have the choice of a company car or a cash alternative. Drivers are now taxed either on the BiK value of their company car or on the value of their cash alternative, whichever is higher. Because you have taken the cash alternative rather than a company car, you will simply pay income tax on this allowance and not BiK tax.